The Unofficial Alcudia Smir Forum

The real estate in Morocco has fallen by 20% and the new programs are sold 20% lower then before.
Can we claim discount ???

It should be very difficult to claim any compensation due to the actual recession.They will reply : you signed a contact thats all.

Regards

I'm more hopefull that they might devalue their currency before completion

we must make a petition and request a reduction like this was done to
Rabat

I would be willing to petition for a reduction as I am sure every one would but where do we start & with whom.

First of all, each of us must contact the agent in U.K. and ask the question . if nothing is done then we can work together to make a petition .

Does anyone know what the properties are being marketed at now ie how does a 2 bed penthouse now compare with our original contract price. If there has been a 20%+ drop then agreed a petition is needed asap

The Moroccan central bank, Bank Al-Maghrib, has announced a second lower rate floors on loans which lead to lower rates of housing loans.

Indeed, the floor was reduced to 4.64% against 4.72% for loans of less than 7 years and 5.07% against 5.15% for loans of more than 7 years

Compared to the European Central Bank Rate of 2.5% this is very expensive. What is the Moroccan Retail/High Street Bank rate on the loan for an expat =>10%?

I go with requesting at least 20% + 6%VAT increase off the AP1 pricing as a starting point for concluding the deal and only then if the original project concept (Hotels etc) is completed in a reasonable time

Davmel,

I totally agree with you. I also suggest that we do not hand over the 60% untill the hotel and restaurants are completed. We have no idea when the other APs will be completed. I want to be sure that it is not going to be a building site for the next 10 years.
There are alot of poeple who will not be able to complete the deal because of the world recession. If Addoha are smart they would do well to make a deal with us.
Property values are down 20%
the dirham is 25% stronger than it would have been if they had finished on time- their fault not ours
funds are not easily available from banks
for most of us, our financial situation is not as good as it was

Others have made deals with developers on other developments. We need to do the same.

Hi Davmel/riaz,

I agree with your logic. But how do we go about do this?

The last time I looked at GBP/MAD it was 12.5 (16.5 in 2007 25% increase), and with the include in VAT to 20% (from 14%) the whole investment has cost about 31% more than it was in 2007.

Also, looking at the whole development (looks like a building site) is there going to be rental demand on AP1? If a mortgage is taken out and there's no rental demand then the MAD mortgage will need to be paid in GBP converted to MAD.

Rgds

This is not good idea not to pay, because you may break the contract of sale. it is better to negotiate a price reduction of 20% giving the argument as not finishing the hotel ,golf course ,parking lot,and the bridge that leads
at the beach can also be the pools. this is why I recommended to make a petition.

Did anyone on this thread complete?
Snippy?
Davmel?
1Frenchy?
Timmi-man?
Jimbo?
McNeilee?
VAF?
scottie dog?
Two can tango?

I haven't completed yet and no rush to do so. More progress needed on hotel first.

No on ap7 still thinking on canceling