Why Buy?

[Stevie]

As someone who hopes to secure a property I and most people who view or post on the site will be very positive about the development. Its easy to become sure about something and not see or be prepared to see any negatives.

I would like some posts from an unbiased point of view or with your unbiased opinion on the following points:

1. Price - is it a good buy? It is more expensive than first thought?

2. Time scale - when is the development likely to be complete? What will be the financial and tourist climate at that time?

3. Experience of the builders. What build quality and finish is expected?

4. Air fare. When will flights to local airports be inexpensive if at all?

5. Why are you buying and does it make financial sense? To rent, resell etc.

6. Is there a rental market?

7. managment / service charge costs

Any other points that you might of considered when making the decision to buy would be useful to know.

Its a big investment for most people and although I think that the development ticks most of the boxes, its nice to be assured.

Stevie

[romablade1889]

My views:

1. Price - is it a good buy? It is more expensive than first thought?
Depends on what you want to do with it. I think there's a maxiumum value the market will rise to over the next 5-10 years. I'm expecting this time of apartment to go no higher than £100k during that window, comparing it to other similar but more mature markets like Turkey, Bulgaria etc.
In the short term, I think we can still expect an immediate rise of around 15% once built as there'll always be those prepared to pay a premium to get something now rahter than buy off plan. I also think there'll be similar rises each year for Year 1 and 2 on the back of the publicity Morocco is getting, and the generated demand. Growth will then flatten off peaking at the amount above. So, yes - I still think it's a good investment. Just wish I'd bought 2 years ago

2. Time scale - when is the development likely to be complete? What will be the financial and tourist climate at that time?
Fadesa are relatively quick when building in Spain. I'm expecting AP1 to take 6-10 months start to finish (excluding time to get planning permission and stuff). AP4 will probably follow about 3-6 months after that. The whole site is massive and I think work will be going on for at least 3 years.

3. Experience of the builders. What build quality and finish is expected?
Fadesa are generally very good, at least they are in Spain.

4. Air fare. When will flights to local airports be inexpensive if at all?
Charter flights are just starting up again to Morocco (the Thomsons etc of this world haven't been too big on Morocco recently due to poor quality of accomodations) and for last minute deals in season, these are the best option. EesyJet etc are still expensive as their flights are in demand and get full quickly. They're not flying to Tangiers yet. Go on the EJ or RyanAir sites and use their booking tool to get some quotes. You're looking at about £270 return for Gatwick to Marakech in March at the moment...

5. Why are you buying and does it make financial sense? To rent, resell etc.
Yes. I've got a very complex business case that takes all costs including opportunity costs and devalutation of money into account. I'm happy to share this if you PM me. I can make more on this than investing in a risk free scheme (e.g. building society). I can probably make more on the stock market, but I can also lose a lot more!

6. Is there a rental market?
Yes. But, don't expect to rent to Brits immediately unless you go via a tour operator like Thomson or something. The biggest rental market for our development will be the Spanish in the early years. Demand from Brits will grow but it's anyone's guess how much. To be safe, I'm assuming I rent it out for only a few weeks of the year... Upside is that there are very few quality rental apartments available in morocco currently.

7. managment / service charge costs
Depends. If you outsource completely to a travel agent/tour operator, they'll generally quote you a %age return which is normally around 5-7% of the property value. Expect to pay 5-15% of rental income for a rental agent if you go independently.

[shak]

1, Price, in line with market but quality will not be.

3. Time scale, five years. have to live on a building site for a while.

4. air fares will come down when we will have volume

5.why are you buying, following the herd

6. rental market, untested.

7. we dont know

focus on the negative sides and you will get a balance

[ScottieDog]

shak - I'm interested in a couple of comments you've made wrt build quality - where have you had a negative experience? PM if appropriate

Alan

[CARLYWOO]

Shak

I'm interested why you are even on here or do you have ulterior motives?

[shak]

No ulterior motives at all. I am not an agent nor work in the Industry. I have years of experience in the property market.

You will get & hear what you want to hear. As an experinced investor we also have to look at the downside, which I note that apart from myself there is one or two others who are doing it.

[CARLYWOO]

Shak I agree with freedom of speech and all that but what I wanted to know is are all your opinions negative ones because the build quality of Fadesa other moroccan site is exceptional

[shak]

The forum only deals with Kabila and its being developed by Fadesa it has its own pro & cons.

I have nothing against the build quality in Morocco you just have to see the skills of the builders in Marakesh. The development is supposedly been sold three times over and is touted around as luxurios.

There is no show flat or samples of materials that is going to be used. We have nothing to compare when the keys are handed over to us.

[Pinky]

Hi, Yes I too would be interested to know is it Fadesa's build quality you have a problem with or just developments in Morocco in general. Surely you cant tar them all with the same brush?? Being a Plant hire company myself you get good and bad parts of every company and also good and bad jobs. Those jobs that were bad, you learn by them and endevour to make the next better. I would of thought that Fadesa will release details of spec. as soon as they are available. Does anybody know anything regarding this???

[Pinky]

Hi, Yes I too would be interested to know is it Fadesa's build quality you have a problem with or just developments in Morocco in general. Surely you cant tar them all with the same brush?? Being a Plant hire company myself you get good and bad parts of every company and also good and bad jobs. Those jobs that were bad, you learn by them and endevour to make the next better. I would of thought that Fadesa will release details of spec. as soon as they are available. Does anybody know anything regarding this???