Pure Investment Morocco

The pure investor is an un-emotional investment property buyer who is purely seeking maximum short term return on capital within the safest investment market in history. Their investment vehicle is the purchase price but the investment involvement is typically only 20 - 40% of the purchase price.

During the development period the developer is likely to increase the development units sale price several times in phases. These price increases inversely mirror the developers risk, as the development matures the developer's exposure diminishes and so they can charge more for their product with each passing stage. Also for the buyer they can see physical progress, get a feel for the property and rely less and less on architect drawings and graphical impressions when making the decision to purchase the property - but pay extra for this luxury

To the "Pure" Investor this creates an excellent investment opportunity. When buying into the development at the earliest stage possible the Investor can benefit from each of the phased price increases showing a profit gain of 30% - 40% (assuming 3-4 phase price increases each of 8% - 10%).

The pure Investor then seeks to re-sell his investment bought early at the best possible price just prior to completion to a secondary buyer who typically wants to live in or rent the property.

"Pure Investment" In Morocco

Investors buying property in Morocco typically adopt the "Buy to Let" strategy currently, with property prices at a low and prices expected to rise for the forseeable future. With King Mohammeds "Vision 2010" in full swing and drastically increasing the volume of tourists and potential rental tennants its obvious why this strategy is utilised.

Investors looking to make large gains from capital growth are also looking to Moroccan property. They are looking to purchase early on developments to secure high quality property units in the best locations at the best prices. Capital appreciation in Morocco is expected to be in the reigon of 15% - 30% in 2006 based on previous figures. With the governments development plan for Morocco set to continue driving tourism and property market atleast until 2010 most investors will look to hold property until this point and many choose to look for a rental income during this period.

Case Study (Example Only)

John decides to purchase an Investment Property and he decides that it is purely a wealth building exercise and that the "Pure" Investment strategy is for him.

John decides in conjunction with our advisors taking into account his personal criteria to purchase a unit on the development "X" at €630,000.

John pays 30% deposit (including his initial reservation fee) which totals €189,000 and signs a re-assignable contract allowing him to sell prior to the completion of the development units.

The project matures and after several phased stages John negotiates the sale of his purchased unit for €925,000 to a secondary home buyer.

To John the "Pure" investor this represents a huge profit gained on invested capital of 156% (IVA and agents fees have not been included in this example calculation) as he has only ever invested the initial 30% deposit into the property.

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