ok, so you say in 7 yrs prices will be the same as they are today? (inflation is 2.5% by the way and i wish my bank would give me 6% interest!) ok by 2014 i bet you prices will be higher than they are today...deal?

The prioces is MOrocco were artificially high from the beggining based on the ultra-high Spanish ones. When the Spain prices will be 40% lower, there will be no incentive to buy in third world countries instead of EU countries.

I absolutely agree with you. Prices in Morocco were based on Spanish prices. While the market was still buyouant in Spain they looked good value. When/if prices continue to fall in Spain, people will start looking at Spain again.

I really cannot understand why people think that that Spanish property market will not influence the property market in Morocco.

I really can't understand why anyone believes that they can re-negotiate a contract, when the only outcome is that th edeveloper would be handing money back. Which they are not going to do. If you think that a court would uphold a case bear in mind that there's a basic risk vs discount agreement here.

When you buy off-plan you get a big discount on the price of the property. You expect to pay, say for example, 30% less than when the developer sells a finished version of your property. But what you are trading with is risk. You get that discount, in small part because you're lending the developer money (say 5%) but mainly because of exactly the risk of what's happened here.

You can't enter into this agreement accepting the discount but not the risk. If the risk materialises, then that's your problem. You can't complain. If you buy gold because it regularly returns 20%-30% annual increase, you can't ask the dealer for your money back because it's gone down 10%.

If you want a safe investment, you get a smaller return. If you expect a big discount because of an off-plan purchase, accept the risk.

quote:

Originally posted by alant:
inflation is 2.5% by the way

And pigs can fly.

quote:

Originally posted by msej449:

When you buy off-plan you get a big discount on the price of the property. You expect to pay, say for example, 30% less than when the developer sells a finished version of your property.

Correction: you MAY get a big discount, in irrational markets. When the markets come to their senses, the big discount transforms into huge losses as people learn now the hard way in Spain and USA.

taraca: And I thought that I was pessimistic! I think that for lifestyle purchases (as opposed to pure investment) people should be absolutely sure that there's nothing available on the resale market, accepting that there may be a premium to pay.
Perhaps this is just personal bias - when we bought abroad we bought resale and got the keys to our property 2-1/2 hours after first looking at it, with no deposit. If the legal process had thrown-up any issues we would have lost the notaire's fees and had to hand the keys back.
I don't doubt that there are very many safe off-plan offers out there. But you have to admit that buying resale is safer - at least the building actually exists.

quote:

Originally posted by msej449:
I don't doubt that there are very many safe off-plan offers out there. But you have to admit that buying resale is safer - at least the
building actually exists.

I think that in the current worldwide situation
many off-plan will not be finished because the builder will go bankrupt. So yes, resale is much safer now.

Taraca, in your opinion is there anywhere in the world where property prices will rise in the next 5 yrs or should all property investors hold on to their cash until the crash reaches the bottom of the cycle?

I find it amazing people think that prices in Morocco are too high, yes Saidia is at the top end of the price bracket but if you compare it to a "similar" resort in spain you would be looking at paying atleast double or more for the same property.

Investors are only just starting to buy in Morocco, in my opinion there is no doubt the more "exclusive" resorts will be very popular in say 2010.

Buying a resale property maybe safer but to seek max ROI i strongly believe you need to buy off-plan. Maybe the people on this thread wont buy in Morocco but there are thousands of others out there who are currently seeking off-plan properties in Morocco, do your research billions are being pumped into the country to improve infrastructure & create these resorts, once the cheap flights start flying into the northern morocco region even more investors will be attracted.

12 mths ago you didnt see / hear much about Moroccco, now if you look in all the overseas property mags Morocco, these are all positive signs showing people's interest in the country.

We all have our own thoughts, the above are mine, good luck to all! Investing in an emerging market is quite risky, but i think Morocco is currently in the top 3 for investing overseas.

quote:

Originally posted by alant:
Taraca, in your opinion is there anywhere in the world where property prices will rise in the next 5 yrs or should all property investors hold on to their cash until the crash reaches the bottom of the cycle?

It is everybody's choice what to do with the money.

I am still inevsting a bit in yet unspeculated area in Brazil and in places which have already crashed badly in USA. Maybe I'll buy in Spain after the crash.

taraca

I wanted to make my first purchase in Spain but value for money was not there, I looked at Italy, Turkey, Bulgaria and eventually bought off plan in Morocco.

For what I am paying for a 3 bed penthouse, I would have got a studio in a decent part of Spain. Is it a risk? yes of course it is.

Had I have bought in Spain I would in negative equity now anyway! so I think its worth the risk.

I still want to buy in Spain, but like you will wait for prices to drop first.

quote:

Originally posted by manor park:
taraca

I wanted to make my first purchase in Spain but value for money was not there, I looked at Italy, Turkey, Bulgaria and eventually bought off plan in Morocco.

For what I am paying for a 3 bed penthouse, I would have got a studio in a decent part of Spain. Is it a risk? yes of course it is.

.

Out of the countries you mentioned, Morocco was a no-brainer. Turkey and Bulgaria are just hype and Italy is further away and with worse climate than Morocco.

Hello all.

I know this thread is regarding Morocco and Med Saidia - however it also discusses Spain and a Crash due.

My Mom has a huge villa over on costa del sol on a mountain secluded overlooking sea. My father passed away last year and she has been trying to sell since last 6 months - she has been told she paid 'over priced' for the property and basically has recieved offers resulting in her roughly losing 50-60k. She and my father spent an awful lot on this property such as decking etc.. which is all gone out the window.

Anyway my question is this :

should she accept the offers and sell up and lose money? or wait? Will it get worst or better?

She is losing alot of money monthly as spends far too much outgoings to cover payments as it is hard to rent due to its secluded location.

Please help!

Thanks.

quote:

Originally posted by nickohorn:
Hello all.

I know this thread is regarding Morocco and Med Saidia - however it also discusses Spain and a Crash due.

My Mom has a huge villa over on costa del sol on a mountain secluded overlooking sea. My father passed away last year and she has been trying to sell since last 6 months - she has been told she paid 'over priced' for the property and basically has recieved offers resulting in her roughly losing 50-60k. She and my father spent an awful lot on this property such as decking etc.. which is all gone out the window.

Anyway my question is this :

should she accept the offers and sell up and lose money? or wait? Will it get worst or better?

She is losing alot of money monthly as spends far too much outgoings to cover payments as it is hard to rent due to its secluded location.

Please help!

Thanks.

Things will get much worse. tell your Mom to not follow the crash to the bottom.

Price the villa below any other vila around and
she might sell. In 2008 prices will be at least 10% lower than now. The 50-60K loss might transform in 100k-200k loss.

woah that bad!

She also has another option. And that is continue to pay rest of mortgage off - about 10 years. Then it will be all left to Me and my sister one day. Plus if she were to die whilst paying it off it is then paid for.

It hits her hard however in terms of monthly outgoings so may be better off to sell it.

But in long run would it still pay off to keep? as it will be her next of kins anyway?

What are your thoughts?! heeeelp!

thanks.

quote:

Originally posted by nickohorn:
woah that bad!

She also has another option. And that is continue to pay rest of mortgage off - about 10 years. Then it will be all left to Me and my sister one day. Plus if she were to die whilst paying it off it is then paid for.

It hits her hard however in terms of monthly outgoings so may be better off to sell it.

But in long run would it still pay off to keep? as it will be her next of kins anyway?

What are your thoughts?! heeeelp!

thanks.

Talk to a financial advisor.

Does she have any capital gain?

If not, I do not see any reason to hold on the property. She can sell now and buy again 3 years time.

Nickohorn
How about you helping your mum pay of the mortgage as you say one day it will be yours, or would this not fit into your view on money and the future,

THINK OF YOUR MOTHER AND NOT YOURSELF.

skankey please don't tell me to think of my mother and not myself, why on earth do you think i am doing here trying to get her help?

No it does not fit into my view on he future. She was due to retire out there with my dad, however he died and so plans in life change. She now will never set foot over there as it brings too much painfull memory so It is a shame but she must sell. I could not afford the mortgage and it would also stop my plans for like the next however many years as i want a business or even start my own investing, I do not care about owning it, she does for me. she needs to sell and save her own expense.