Unique opportunity to purchase and renovate a Riad in the city of Marrakech, Morocco
Traditional Riads with a complete turnkey renovation package
Located in Marrakech Medina
Spectacular views from own terraces
Renovation riads cost almost 1/3 of a restored riad
Minimum 30% capital appreciation achievable
Huge demand for elegantly restored riads
Exit strategy due to Marrakech's fascinating culture and charm
Refurbished by professional and reputable builders
Complete turnkey solution from purchase, renovation and resale
Marrakech Investment Facts
Imagine Marrakech - And it’s spectacular setting against the snow-capped Atlas Mountains. The image lingers long in the minds of most travellers, and lets not forget the famous Djemaa el-Fna square that provides perhaps the greatest open-air spectacle in the world.
Fashionable holiday destination, offering a range of sporting and leisure attractions
Wide range of property from, new off plan apartments to fully restored traditional riads
Excellent rental market due to colorful culture and year round sunshine
Momentous growth in property market over the past 4 years, but prices still cheap in comparison to other similar destinations
Chic location, with holiday home owned by some of the super rich and famous
One of the most popular tourist destinations in Morocco.
Five major golf courses currently being developed in and around the city
Comparisons with Dubai 5 years ago see Plan Azur.
UK tourists increased by 35% in 2006.
3.5 hours flight time from the UK, with regular flights by a number of low cost airlines on a daily basis
Major investments in central airport, roads, and a new train station being built, with high speed train links.
Market Summary & Taxes
MORTGAGES Mortgages can be arranged through our associates "The Moroccan Mortgage Alliance" and funding is available not only for the purchase of the riad, but also for refurbishment costs (on stage payment basis)
70% LTV of the declared purchase price and refurbishment costs. An Interest rate of 4.64% variable to 5.15% for fixed. A mortgage term for between 10 – 15 years
TAXES
Annual Capital Growth of + 15% to even + 30% in some locations
Emerging & booming market - prices half of most European resorts
No rental tax for 3 - 5 years
Year-round rental market with yields of up to 20% per annum
Capital Gains Tax between
0% and 20%: In the first 5 years = 20% of profits over 60,000 MAD with a total exemption below; Between 5 and 10 years = 10%; After 10 years = 0%. 0% inheritance tax to family members upon transfer of the property
No annual property tax for first 5 years
Double tax treaty to avoid paying Capital Gains Tax in two countries
Number Crunching! A typical buy, renovate and resell example So, what’s on offer? An opportunity for you the investor to buy an un-renovated riad, which we will project mange to renovate and sell to the open market in 14 months times returning you a share of the profit and retaining some of the profit for our services. For complete information
For more informationor select
Costs Euros)
Costs Euros
Purchase Price of Riad 1 20,000
120,000
Estimated Resale Price
320,000
Local estate agent fees (Approx. 5%)
6,000
Expected Profit
94,800
Legal - this will be max amount for deed cleansing (Approx 10%)
12,000
Capital gains tax payable (Approx 20%)
-18,960
Notary and Tax (approx. 6%)
7,200
Project management fees (4% of resale price)
-12,800
Total costs to Purchase
145,200
Investors Provident fees (3% of resale price)
-9,600
Estimated Refurbishment Costs
80,000
Local estate agent fees (3% of resale price)
-9,600
Costs to purchase including Refurbishment
225,200
NET PROFIT TO INVESTOR
43,840
* Please note: You have the option to retain the riad for personal use if you do not want to resell. In that case, you do not have to pay the 3% estate agency fee towards the end.
