How to Find the Best Mortgage Deal in Morocco?
Moroccan real estate is coveted worldwide for high returns among other reasons. This has resulted in overwhelming interest among foreign nationals in buying property here. The government is encouraging this by providing easy mortgage loans to finance the purchase.
Why is Moroccan property sought after?
Even when property prices slumped all over the world with global economic slowdown, Morocco witnessed a steady increase in both demand and price in the real estate market. One of the reasons attributed to this amazing fact is the interest shown by Moroccan government in promoting the tourism industry.
The government has set the goal of drawing in 10 million visitors each year from 2010. To this end, extensive infrastructure development projects are underway. The government’s agenda is to raise the country’s infrastructure to international standards to attract tourists. With the tourist inflow increasing, the most essential requirement is accommodation.
The government is developing properties mostly along the coastal line for this purpose and encouraging tourists to buy them, both for vacationing and as an investment. Another option available for foreign nationals is to relocate to Morocco after selling off their property in home countries. For both purposes, Moroccan financial institutions are offering easy and trouble-free mortgage loans.
Here are some ways to zoom in on the best mortgage deal to finance the purchase.
- Mortgage is available for 70% of property value. Both Moroccan bank and private lenders give only 70% of property value. The rest 30% need to be transferred and deposited in a local bank account to start the procedure. Banks have their own surveyors to estimate the property value and the mortgage amount.
- Interest and duration are variable. The interest on the mortgage amount varies from 5.5% to 7%, depending on the mortgage source. The period of repayment varies from 3 to 15 or even 20 years. The ideal way to find the best deal is to engage a local real estate agent with enough experience and knowledge about the mortgage market. Not only can they help in locating the perfect property based on the conditions given, they are also efficient in pinpointing the right mortgage deal to suit the purchaser’s pocket and other limitations.
- Engage a recommended agent and experienced lawyer. It is easy to get swayed by the attractive ads and glib-tongued agents. Honesty, experience and knowledge of local laws and language are the features to look for in an agent. The service of a lawyer is necessary to ensure that the title deed is clear.
- Older properties come cheaper. If the idea is to buy a property and revamp it later, it is better to go in for older buildings. Not only do they come at low prices, the chances of cornering a steal are higher.
While searching for property, it is advisable to concentrate on areas where developmental activities are underway or in the pipeline. This will ensure that the property rate will skyrocket when the projects are complete.
Filed Under: Real Estate Tips
