Hi all,

I have just reserved a one bed apartment with the oasis beach and golf resort a week ago.

I am a first time buyer and am fairly new to alot of this. I have done alot of my own research and originally wanted the 2 bed at the greens. However I have got to stay within my budget so went for the oasis one bed which is the same size.

It will be £74,000 as i get 5% cash back on completion.

My question is this:
Do you think this is still worth going ahead as a worthwhile investment? I believe it to be but would like more of a professional feedback on your thoughts.

Also what (roughly) would you estimate a one bed within Saidia med to be worth in the coming years?

Thanks guys
Nick

What is your objective of the purchase? Live? Holiday home? Rental income?

I am no "professional" (but have overseas investments where I happen to live). My own personal view is any FTB should think hard about whether an overseas purchase is their best first purchase option per se (particularly if it is not just their home in the country they happen to live in). Then about whether this type of project and its location is their most suitable option.

The Saida threads rehearse many of the potential issues to help you to decide. Your objectives dictate how some of the possibilities will impact (re-sale, chances of rental income etc).

That link to the guy running Saida is also interesting because he is very clear about what investors should - and more importantly should not - expect from a "resort type" of investment.

Only you can make the choice at the end of the say.

Hi

thanks for your advice, I currently live at home with my parents, I would move out now with my girlfriend however she is pursuing a business plan and so will be a couple of years until we can properly move out so I thought about investing my money into a property.

I would hope to rent it as much as possible and gain a rental income, whilst gaining on its cap growth. I read alot and have done alot of research, I am trying to get my bearings with the worst possible outcome and the best.

What are your thoughts on a one bed and its maximum price rise? Could one get double or even triple what paid for it within years to come? or is that wishful thinking?

Thanks guys!

quote:

Originally posted by nickohorn:

What are your thoughts on a one bed and its maximum price rise? Could one get double or even triple what paid for it within years to come? or is that wishful thinking.

You have answered the question. You *could* but you may well not (and what is "within years" anyway - five, thirty?).

So what you want is an investment that delivers 200-300% capital growth *and* decent income :O.

In a free market, an asset is only ever worth what someone else is willing to pay for it. Not what a developer tells you it "might" be, or what the owner wishes it to be.

quote:

Originally posted by nickohorn:

What are your thoughts on a one bed and its maximum price rise? Could one get double or even triple what paid for it within years to come? or is that wishful thinking?

Thanks guys!

Of course it can easily double or triple! BUt it can also easily stagnate or go down a bit.

Consider Florida. The people who bought off-plan in 2001 and sold in 2005 got double the money.
For a 20% investment, that meant 10 times return i.e. 1000% capital growth.

People who bought off-plan in 2005 and are planning to sell now, the value of their investment for some of them went down by 30% so many of them are just walking away and losing their deposits.

So it really depends.

Nickohorn,

Are you going to need to realise the asset in a couple of years time in order to move out from your parents, or are you looking long term?

Your answer to this has a big bearing on whether purchasing in Saidia is a good idea for you or not IMHO.

quote:

Are you going to need to realise the asset in a couple of years time in order to move out from your

Not really, at least I dont think so, I am currently 24 and did live with my girlfiend, and we moved out of our rented apartment in england recently back home because she is about to start her own business so needs all money can get. I am supporting her and dont mind this, I pay my rent at home now, however am use to paying alot more monthly so this is why I want to put my money towards something for my future. I would like to gain the rentals from it to cover my payments on mortgage.

Dont get me wrong, im not jsut doing this for the sake of it, I have been following the Saidia development for some time now, and gathered all my research, however as a first time buyer i find alot difficult to understand alot and the whole process of buying / mortgages etc, and as my girlfriend is busy I feel I am kind of doing it alone. I am willing to take the risk on this apartment, I jsut am trying to work out my return on it as estimates see, eg/ rental worst scenario for year and best etc...

Have you guys bought there ?

Thanks for all the help guys.

Nick.

quote:

Originally posted by nickohorn:

Not really, at least I dont think so, I am currently 24 and did live with my girlfiend, and we moved out of our rented apartment in england recently back home because she is about to start her own business so needs all money can get. I am supporting her and dont mind this, I pay my rent at home now, however am use to paying alot more monthly so this is why I want to put my money towards something for my future. I

Look at the threads opened by DJGRH. He is in the same situation as you are and I am quite sure the answers to his questions apply to you.

Hi Nick,

I am investing in Saidia but I consider it to be long term for several reasons.

Firstly I think there is going to be a big correction on UK house values and a lot of people will be feeling the pinch of increased interest rates. The market will slow down significantly and people will not be looking to invest abroad as they will not be able to afford the properties they have over here. In this case scenario you have to hope that there are enough people who can still afford to go on holiday!

Secondly, I think that Morocco as a destination is going to take some time. If you mention Morocco to average Joe, they turn up their nose and think 'yuerck'. I visited 20 years ago and crossed it off my list of places I would ever want to visit again. However times have changed, and the facilities at Saidia might just as well be anywhere. People will like the short flight, weather and what's on offer. They will also love the Moroccon charm once they are there I am sure. Firstly though it has to appear on their radar. This will happen with further press coverage, holiday programmes, tour company promotions, word of mouth etc.. But this doesn't happen overnight and may take several years once the resort is up and running - possibly several years after the resort is completed - so that takes us to 2013. I am investing because my purchase completes in 2010 and I can afford to 'prop' it up for several years. I also dream that one day it will not only pay for itself but also earn me a lovely income as well as provide somewhere nice to go on holiday to. But right now that is just a dream.

Can you afford to do this? Even more importantly, are you prepared for the fact that your purchase could operate at a loss and you might not be able to sell it??

Best case scenario is that the resort takes off and everything is booked out almost all the time (how we wish!!).

Anyway, it never hurts to 'hope for the best and plan for the worst'. Give thought to worse case scenario and see how comfortable it makes you feel.

It is easy to get hyped up by agents and the promise of something exciting and wonderful.

Personally if I were in your shoes I wouldn't take the chance. I feel suspicious about capital growth anywhere right now. I would invest my money somewhere less exciting and without the risk, and wait and see what the next few years brings. I'm hoping it will be much cheaper house prices both here and abroad.

I suggest you buy a copy of Money Week. It is very insightful and may make you consider other options available to you.

I agree with Zeenie. You sound like you will need the capital in a couple of years so personally I would tuck it in a Bank if I were you.

Zeeny my thoughts on the 'worldwide' property crash;

Yes I see risk in places like Spain but I dont apply the brush to everywhere else. Saidia in S Spain would command higher prices - again its the beach, golf marina and immense facilities that would dictate such a high price tag in Spain.

People compare with Polaris world but this is nuts. Polaris golf resorts in the Saidia price range have no marina (let alone a spanking new mega marina), no on site beach (let alone a 6km beach), dont have 11 hotles on site (2 more likely), dont have 500 shop shopping centre etc etc etc.

My guess is a golf villa Saidia equivalent in Spain would cost at least double - I looked at countless Spannish resorts to get this conclusion.

In other words we have got in at the right time so I cant see values falling.

We sometimes think like little Englanders, but should keep in mind many French, Spanniards and for some reason Belgians are retiring and buying in Morocco. Also there is a growing North African / Arab middle class and many Eatern Europeans with cash to spend.

We sometimes think Britian alone sets property prices. I dont accept this for a second in the global economy we now live in.

Thorr.

How do you see the UK market panning out over the next few years?

You have referred in the past to getting out of BTL, so you must be feeling pretty bearish?

Hi again guys.

THnaks for your posts. I also see this a long time investment, as a first time buyer it would only be that, I do not have any intention of selling within 2 years, to be honest it would be 5 years at the minimum due to the giant business plan my girlfirend has anyway.

I love living at home anyway! lol
I have many a connections with golf courses where i live and am a member of one, so already I know by completion I would feel satisified in terms of rentals, this is also seprerate to the on-site rental management system provided.

My idea would be to keep this as long as i can and have my rentals pay off my monthly payments - but again as you say , you have to look at the worst scenario. I just feel its time I invested in something at the moment, I feel I am going nowhere - with just my annual salary, I cannot move anyway forward in the UK for some time due to the commitment with my partners plans. So I would be happy to go through with this.

I enjoy listening to your posts, especially youra thorrs, I have followed your posts for some time now, although I see how people mean that "its easy to follow and accept the posts with encouragement to your own plans but not the ones putting downers on your plans"

You give me some great advice and alot of considerations.

Thanks again.