I purchesd in Nov 05 as a long term investment but since then very little information seems to be available on Magnum - everything shifts to the latest 'exciting development'. So some questions...
Has anyone been out there recently and seen a Magnum property?
FADESA reckon Q4 07 for completion - is this realistic?
Has anyone received more information from FADESA - such as full layout plans, furnishing details, leasing terms, charges etc etc. All I have is marketing literature and a contract (and report from CBA Law).
Has anyone opted for the 2% / 2.5% rental offer - has the % of ? been confirmed yet.
Are you still happy with your investment? Does Saidia seem as good now as it did 12 to 18 months ago.
Do you have any concerns you want to share that should be taken up with FADESA?
Hi There I'm afraid we are a bit of a minority on Saidia forums, we bought a 2 bed 2 bath first floor apt on Magnum back in February 2006. I agree there is very little information, I know about as much as you and thats only because i rang Fadesa a couple of times. I do think they could have been more forthcoming with their updates, last i heard from our agents it was scheduled for completion July 07 now Fadesa say November 07. We are not going to take the rental offer, I informed Fadesa months ago that the apt woukd be for our private use only, undecided at this point whether we want to rent out. Have received no plans/details/update pics etc from Fadesa which concerns my husband a little. Our agent promised to make available recent pics on their website but so far none have appeared. We have no regrets and still feel it will be a great investment, the location/position is fantastic and we look forward to many happy holidays there but the lack of information generally is very frustrating. Not aware of anyone going out there recently, would be great to see the progress since last February.
I was concerned that we would be forced into their rental option so i asked fadesa to put it in writing (via email) that our apartment will be for our personal use only.
We have bought through Saffron Villas, they have been extremely honest and professional throughout. I know this sounds cavalier but we dont have a lawyer yet but obviously need one before we sign the final contract.
Thanks galemi. Good site but I can' tell if any are of Magnum. Does anyone know?
Hedgehog, we used Saffron Villas to and agree they seemed honest and professional but do feel their after sales service is lacking; they havn't contacted us since we signed!
We used CBA Law; the basic contract seemed fine - I am no expert but noted on other forum dicussions savvy investers getting favourable clauses added. As with most contracts they tend to favour the developer. The one grey area for concern was the 'suggestion' exclusive users could not rent out privately. FADESA and a number of other agents were upfront and said this wasn't possible, whereas SV were marketing Magnum on that basis. CBA Law confirmed that under Moroccan law it was possible to rent out.
Doesn't effect us because we are going for the 2% option, which may seem poor but is hassle and property maintenance free.
Have you gone with the exclusive option with a view to rent out yourself or personal use only.
We opted out because we want to use the apartment ourselves (we have a large family ) and possibly rent to friends etc.
Thats the problem with pics that people kindly download, rarely do we get a shot of Magnum, not sure if i am allowed to post links but here goes anyway
You will find magnum pics taken around December 06. Still not much to see. Think its time I gave Saffron a ring re update. Will let you know if there is anything new.
[QUOTE]Originally posted by Hedgehog195: Hi There I'm afraid we are a bit of a minority on Saidia forums, we bought a 2 bed 2 bath first floor apt on Magnum back in February 2006. I agree there is very little information, I know about as much as you and thats only because i rang Fadesa a couple of times. I do think they could have been more forthcoming with their updates, last i heard from our agents it was scheduled for completion July 07 now Fadesa say November 07. We are not going to take the rental offer, I informed Fadesa months ago that the apt woukd be for our private use only, undecided at this point whether we want to rent out.
I've also bought a magnum through Fadesa in Spain, and there is something that they have made clear, we own the property but we can only use it for a period of a month a year, the rest of the time there will be an agency which will take care of renting it and then we will get part of the benefits each year.The three first years, these benefits will be between 2-2'5 per year, then as there will be more chances to rent them because Mediterranea Saidia will be almost fully completed the benefits will increase. Although it doesn't sound too good said like this, I think it's great investment because being next to a 5 star hotel and by the beach will have a bigger demand for renting that the rest of the other developments in Saidia. During the time they are renting your appartment they are in charge of everything referring to maintenance, cleaning, etc. So you won't have to worry about anything. The good news is that it is said that in 9 or 10 years these kind of tourist appartments, won't exist and this will mean that the owner of these kind of properties will be free to do with them as they wish.Does anyone who has bought away from Spain has different information?
The latest i heard (a couple of weeks ago from the agent) was completion for Magnum in February 2008. I am a little irritated at the lack of communication from both the builder and the agent. Its always left to me to ring up every few months. Considering its now 6 months behind schedule (I was initially told Summer 07) you would think they should be offering some sort of explanation I have no idea how they are getting on, photographs are non-existant, was promised some by my agent but they were not forthcoming. Re the rental issue I seem to be the only one told by Fadesa that i can do my own thing with the apartment. I am still excited about the apartment and love the area, just wish we had some sort of update once in a while.
Does your contract award you any compensation? I know that they have a grace period of 6 months after the initial 21 months has elapsed, so presumably if it goes beyond that you will be able to get compensation?
pictures of Magnum on eyeonworldwide site. Ater visiting the site and looking at the Magnum part I would say you have about another 6 months wait, before the first ones are ready. Some confusion maybe caused by magnum being known as RT1. (If this is not true please tell me).
Galemi, We have purchased a 2 bed Magnum apartment in block 7 ground floor, and I was wondering how you think the position etc compared with the rest of the Saidia site, also did you have a chance to look inside any of the apartments, and if so what did you think of the build and finishing quality. We bought back in October 2005 for £115,000. We have never purchased offplan before and I must admit it is exciting but worrying at the same time.
Jadp, Magnum or RT1-7 are the only apartments by the sea. although I am not sure if RT7 will have a sea view. I think therefore its a better position than the others. Its on the same promenade as the first hotel, which might also give it more value. I went inside an apartment RT1, but it was not yet plastered or painted, and had no fittings. Its very difficult to tell from this the quality of build because the finish is the most important. Most all buildings are built in the same way in morocco. concrete pillars filled with bricks and rendered over. The quality comes from the wood and tiles etc. I have also been inside a completed AP6 apartment, which looked fine. I saw no obvious causes for concern,and I expect that from Magnum, but you will have to wait and see. The problem with the whole thing is timescales. unrealistic ones were set in the begining. Its going to be a long time before you can rent out your apartment. it does not matter wether it was saffron or superior or property logic or Fadesa they all were economical with the truth. None of their original papers included the words. might be delayed by up to 2 years, as with AP6. But overall I think its going to be a good investment,because it has beautiful beaches, and sun,sun sun. Just dont trust your agent with any timescales unless he is prepared to backup his words, and add a penalty clause.
galemi Many thanks for your opinions on site location etc.. As for when the apartments are ready, we were intially told end of 2006 beginning of January 07, so already the projection is a year behind its intial schedule, but as the project is so huge it is really not surprising. I would rather they take their time and we get a good product in the end. I`m hoping that the new date set for Magnum - February 2008 is thee date or shortly thereafter, I am patient up to a point. Looking forward to some of that sun sun sun.
Honesty is always the best policy. Therefore more realistic dates should have been written in their brouchures. they also knew it is a big project. Chances are you still would have bought knowing later finishing times. The hold up now, as I understand it, is the preparation of individual title deeds for the apartments on AP6. When sorted these will act as a template for future apartments such as Magnum, so hopefully this will not affect you. My best guess only for completion of RT1-7 would be November 2008. If your agent is confident it will be before this date ask him for compensation if its not. I must again say that I think the site will be a great success, and a good investment. although to buy off plan must seem like a rollercoaster ride. It will give the best rewards in the end. Hopefully.
London-x Rt6 is not as close to the beach as RT1(magnum). But it is still close. A guess would be a 2 minutes walk. This side of the site not as far progressed as magnum or AP1-7. I will try to visit within a couple of days and report here what I find. Things to think about: the RTs are tourist apartments which only gives you access to them for a number of weeks a year, the rest of the time they would be rented out. Not far to commercial center or marina, and I believe sports centre built near( I will check this out although I think it is true.) Its in the middle of the site as a whole, away from the roads that will circle the site, much nicer and perhaps quieter.
Thanks galemi. I really appreciate your feedback. I am looking at the 1 bedroom appartment (cheapest one) at 86K which is on the first floor and sea facing. I do not wish to spend any time on the appartment myself and would like this purely as an investment. What do you think of the appart-hotel concept and in particular the Sahara Beach and SPA resport. One thing that is a bit worrying is that most of the aprtments in this hotel are very expensive and there are no many reserved / sold so far (cannot tell how many are sold and how many are reserved as they all show up as reserved)
I like the aparthotel concept. It is like the adverts you now see for hotels in london, where you can own a room. If sahara beach and spa live up to their potential,and they really are 5 star it looks a good investment. for £86000 you will only get a suite or big room I think. How many are sold etc. is always difficult to find out. But I would think from reading the forums that there are a lot of people who like the idea of an investment where you do not need to be involved in the day to day running. The questions are all about income. How much is yours. How much is theirs. Do you pay for any structural upkeep. painting, gardens, pools etc. Do you pay them a management fee. It is no good for example if they charge £500 a week for your room, and after everything is paid you get £50. Ask a lot of questions. In three years time will it be worth more than you paid for it. in my opinion Yes.
galemi, I like this concept too and even more when combined with a SIPP. Assuming total purchase costs of 90,000, you can put 36,000 into a SIPP, get it topped up to 60,000 by HMRC and borrow the last 30,000. The rent would pay off the debt in less than 10 years and there would be no income tax or CGT within the SIPP. Also, if it all goes wrong the taxman has shared the risk with you!
Originally posted by Hedgehog195: Re the rental issue I seem to be the only one told by Fadesa that i can do my own thing with the apartment.
Wow this thread has woken up!
Hi, What do you mean your own thing? My contract gives me three options 1) personal use 2)fully rented 3) rented (4 weeks use). Saffron were marketing option 1 as a right to do your own thing although FADESA would not condone active marketing and renting. There is nothing in my contract or Moroccan law to stop me. Saffron are opening a letting office in Sadia but won't / can't give any guarantees on income. I think the 2% option, although poor but includes all maintenance costs, will be the best peace of mind option until Sadia becomes more established - whenever that may be.
Although I was pleased with Saffron I am very disappointed that I am doing all the chasing. FADESA are simply invisible - no one has contacted me. They are too quiet considering the large deposit already paid. A monthly newsletter outlining progress on all aspects of the project and Magnum would be very reassuring.
eyeontheworld has some photos posted 15 Aug of Magnum - what does anyone think?
I agree with comments that they will be worth waiting for and hopefully a cut above the rest. Boy, do I need some sun.
London-x I have nothing to do with the saidia complex. I am however because of its location, looking towards having a buisness conected with it. For now I transport people to and from the airports. I have perhaps been in a unique position, where I can watch it grow, and maybe hear things you will not. I will buy something on the site eventually, but it may be a shop or a bar. If you go back and look what was said about ryanair coming to Oujda or the motorway beetwen fez and Oujda, this was a gross misrepresentation. The people concerned made up stories, and that always makes you think what else are they making up.
Morocking, everyone has a different view of what an RT is. Are you sure you can have the apartment for yourself if that is what you want to do.
