Category: Property Advice Marrakech

Getting a mortgage to finance your Real Estate Investment in Morocco is remarkably accessible, whether you are a resident or not. The Government is making real efforts to open the Real Estate market to foreigners and one way they are doing this is by facilitating Mortgages, and finance more generally.

This article will focus on the market here in Marrakech where I live and work. However, the same basic rules and conditions apply throughout the Kingdom. Finance Real Estate Morocco.

As a non-resident, you might be considering the purchase of a holiday home or a buy to let property. You might also just be looking to get into the Marrakech Real Estate market as an investor. Now is definitely the time to buy as we are seeing the first upward price pressure in a decade http://www.prweb.com/releases/2017/02/prweb14072921.htm Whatever your motivation for financing your investment here in the Red City, this article will put you on the right track to a quick and easy mortgage.

Most commercial banks in Marrakech offer mortgages to non-resident foreigners. You can either go straight to a branch and discuss with the bank manager or you can go through a mortgage broker. Conditions are broadly similar across the big banks. I tend to recommend the BMCE Bank as they are very experienced in dealing with foreign investment. In any case, you will need to open a Convertible Dirham account with the bank you decide to work with. Here are the BMCE Bank conditions for non-resident mortgages: http://www.bmcebank.ma/front.aspx?SectionId=928 Other good banks providing mortgages in Marrakech include the CIH Bank in Bab Doukalla, the Banque Populaire and the Attijariwafa Bank. The French bank Credit Agricole also does a good package.

My experience shows me that there is a great deal of flexibility in these outlined conditions, notably concerning the amount to put down as a deposit. A non-resident client recently obtained a 70% mortgage on a Riad in Marrakech Medina, way above the stated 50% available in the conditions. Much will depend on your proven income in your country of residence.

It is also noteworthy that banks will only lend against titled property – that is a property that is registered with the Land Registry (Conservation Fonciere). Also, if you are looking to renovate a property with the finance obtained, the amount lent will depend on the current value of the property and not it’s finished worth.

If you want to shop around for the best conditions, it could be wise to go through a local mortgage broker. CAFPI Maroc are experienced and successful brokers in Marrakech. Ask for Mr Saad Chraibi and mention Bosworth Property to get prompt and efficient service.

If you are a resident here in Morocco mortgage conditions are also very accessible. Once again, just drop into your bank and ask the branch director. Or go through a registered broker.

Interest rates on mortgages are coming down, though still relatively expensive compared to Europe. The BMCE is currently offering 4.5% pa, Banque Populaire is probably the cheapest at around 4.1% pa. The Government has promised to align Moroccan interest rates with those in Europe by 2025, so it might be prudent not to fix your rate for too long a period. Go with flexi rates if you can.

Mortgages are typically accorded for between 5 and 25 years. There is an upper age limit of 70 years on repayment, however. Obtaining your cash for your property purchase through a mortgage will typically take between 1 and 3 months. So plan ahead. If you have your eye on a property, get a promise of sale signed and then get to work on your finance.

To resume, getting a mortgage in Morocco is a relatively simple affair. All the big banks offer packages to non-resident foreigners for the purchase of titled property. Deposits are generally between 30 and 50%. Interest rates are in the mid 4% range. The whole process can take between 1 and 3 months, depending on your bank or broker.

Remember to click on the banner just below here to get your copy of my Free Guide to investing in Marrakech. It’s full of really useful information for the first time buyer and for the seasoned investor. Thank you!

The United Nations Climate Change Conference will take place in Marrakech this year – COP 22 in Marrakech! It runs from November 7th until the 18th and preparations are well under way in the Red City. Huge tented structures are going up just outside Marrakech Medina and infrastructure is being assembled.

You can visit the COP22 website here: http://www.cop22.ma/

This huge event – expected to attract a hundred thousand visitors or more – is eagerly awaited by ecologists and the local service sector alike. It has already led to a significant upgrade of the local transport system, with the recent purchase of super clean electric buses and the installation of low-energy street lighting. There is work going on all over the city to tidy up the visual aspect of public spaces and in some cases to concretely improve the quality of life for residents and visitors alike. Parks and pavements are being upgraded. Traffic flows are being improved. In July a total ban on the sale of one-use plastic bags came into force across the country.

COP 22 in Marrakech has not yet truly reached the local public consciousness. It must be said that the local population probably has higher priorities than a Climate Change Conference. There is still a lot of poverty in some areas of the city and education levels are generally poor. Access to decent healthcare is very difficult for the less well off. And yet the feeling is growing that this event is going to have a very positive impact on the daily lives of residents.

COP 22 in Marrakech also provides first time visitors with a real opportunity to discover this remarkable city. Marrakech Medina will surely attract admiring attention from those looking for a second home in a vibrant and sunny environment. Here at Bosworth Property Marrakech we extend an open invitation to Conference participants and visitors to a free tour of some of the fabulous Riads and properties in the Medina. There is no obligation whatsoever, just an opportunity to see some stunning private palaces and guesthouses. I’ll even take you to see some beautiful historical Riads that need saving. It’s an interesting itinerary and I’m sure you’ll enjoy it. Just send me a mail to colin@BosworthPropertyMarrakech.com with the title “COP 22 Free Tour” and I’ll be in touch.

There is so much to see in the Medina – from the traditional areas where public life still centres on the Mosques, communal bakeries and public bath-houses to the thriving souks and up-market tourist quarters where social integration is a resounding success. Be my guest. Come and see Marrakech Medina with me – your trusted Medina specialist.

Colin
00212658025028
colin@BosworthPropertyMarrakech.com