Should I speak to a bank before looking at houses?
Before any project to purchase a real estate by credit it is preferable to approach your banking establishment in order to request an estimate to finance your project.
Before granting you a loan, the financial institution must assess your creditworthiness, ask you a few questions and ask you for supporting documents. A point on the checks carried out by the bank.
The bank must ensure that the conditions for obtaining the loan are met by the borrower.
Certain categories of loans, for example, are reserved for people whose income does not exceed a certain amount (social assistance loans in particular).
There is no right to credit. The financial institution always has the right to refuse to grant credit.
What are the advantages of going through a real estate agent to find his property?
You benefit from the advice of an expert
For starters, you get expert advice. People who have been doing this job all day, for years. This translates into several things:
- You will have contacts who are attentive to your project and who will give you realistic feedback on your expectations and your budget. An informed opinion which can save you several months of fruitless searches due to an overly optimistic positioning.
- You will have access to a network of professionals, contacts, business providers inaccessible to the general public. This is even more true if you use an extensive network of agencies, but we will come back to this below. It is therefore the best way to ensure that all goods put sale in your area have been scanned. You have access to more ads, but only the most interesting ones will be shown to you.
- Your agent is available to you. After having listed the best ads, he will be able to arrange visits for you at the times that suit you best and not on limited slots as is the case with private sellers.
You will have access to excellent knowledge of the market and therefore the prices charged.
How to find a good real estate agent?
In addition to your personal feelings, there are a few keys to recognizing a good real estate agent.
- Ensure that the agent holds a business card issued by the Chamber of Commerce and Industry. The profession of real estate agent is regulated and this card guarantees that the person with whom you are dealing is authorized to practice, has followed the training and obtained the required diplomas, and has professional group liability insurance covering the amount of funds that you may have to pay him.
- Get recommendations and opinions from former customers or residents. The agent must be recognized in your sector and in your property category as a trusted expert.
- By using real estate agencies, you could benefit from more methodical and proven practices, a wider network of professionals and a more extensive range of services. Take advantage of your first interactions to test your affinities and the agent’s motivation to work with you. You will spend some time together, if your personalities are too antagonistic it could put sand in the cogs.
Going through a real estate agent to buy your house or apartment is a guarantee of time savings and peace of mind. He accompanies you throughout the process: from the implementation of the project to the signing of the final act.
To avoid unpleasant surprises, remember to check that your agent holds a professional card and to collect opinions from former customers.
Agents’ fees are justified by their work and the guarantees they offer, but they are fairly negotiable.
What are the best ways to buy real estate in Morocco for a foreigner?
Morocco having both coast and mountain, investment opportunities are numerous. Here are the main areas of interest for buy accommodation:
• Urban centers: Casablanca, Rabat, Marrakech, Fès
• Coast: Essaouira, Agadir, El-Jadida, but also the suburbs of Casablanca (Mohammédia, Azemmour) or Rabat (Sidi Bouknadel)
• Mountain: Beni Mellal, Ouarzazate.
The type of property you want to acquire will also matter. For guest houses or rental properties, it is better to invest in tourist towns: Fès, Chefchaouen, Essaouira or Ouarzazate.
On the other hand, if you are looking for a foothold in a place teeming with life, look in the heart of Casablanca or Rabat.
- Buy an apartment in Morocco for a foreigner:
In Morocco, the price per square meter for apartments is around 900 €. This figure has been decreasing since the start of 2018.
To give you an idea of prices, a apartment with a room in the Golden Triangle of Casablanca is trading around 175,000 €.
- Buy un land in Morocco
The price of land varies depending on the city and the district in which you invest, but also on the type of property that will be built there. There are no general statistics for the whole of Morocco.
To give you an idea, the price per square meter on the seafront of El-Jadida varies between 4,000 and 8000 dirhams per square meter (from € 375 to € 750 m2).
- Buy a house in Morocco
The prices are very heterogeneous. Between a townhouse, a Riad and a villa, prices vary almost from double to double. The neighborhood in which you invest will also have a big impact on the cost of the transaction.
According to some estimates, the average price per square meter for a house with more than 6 rooms is currently less than 580 €. In July 2017, it peaked at 1,800 €.
How to finance the purchase of your house in Morocco?
Additional fees for buy a house in Morocco
When you buy a property in Morocco, acquisition costs are added to the price of housing. These are equivalent to 7% of the purchase price: 6% of taxes and 1% which goes to the notary.
The costs are distributed as follows:
- Registration fees: 4% of the sale price
- Land conservation: 1.5% + fixed duty (100 dirhams) + certificate of ownership (100 dirhams)
- Administration fees: between 1,000 and 1,500 dirhams (around 100/150 €)
- Notary fees: from 0.5% to 1.5% of the sale price (4,000 dirhams if the accommodation is less than 300,000 dirhams).
The rates mentioned above are taken from the booklet “Tariff of Land Conservation Rights“, issued by National Agency for Land Conservation, Cadastre and cartography in accordance with decree 2-16-375 .
Be aware that the distribution of acquisition costs is different depending on the property you buy. For example, for social housing or housing with low real estate value, the registration fees are 3% (compared to 4% for other goods).
Last checked on September 2, 2019