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Moroccan property satisfaction – guaranteed

2nd November 2007 Print
Gardens of Fedala, Marrakech Retailers have oft inspired confidence in their products by offering money-back guarantees. “Return the product to us in its original condition within 30 days and we’ll refund in full...” But what about a property? And what about not 30 days later but nine years later? The concept seems doubtful but incredibly the developers of Gardens of Fedala in Marrakech are prepared to do exactly that, and throw in a 7% net rental guarantee for the same period. What's more, globally renowned financial protection company, The AXA Group, is backing both.

Gardens of Fedala is a Moroccan styled sanctuary of a resort punctuated by orange trees, olive groves and rose gardens just 15 minutes’ from Marrakech’s international airport. The two bedroom riads and three bedroom duplexes are fully furnished down to the last teaspoon and serviced by a clubhouse, health centre, restaurant, bar, swimming pool and a small boutique hotel with sauna and Hammam. Private plunge pools are an optional extra and completion of the entire resort is anticipated for mid-2009. Already impressed? Read on, as undoubtedly the deal-makers are the financial guarantees.

Adam Cornwell, Managing Director of GEM Estates explains, “The French developers behind Gardens of Fedala are placing their faith in their product and in Morocco as a destination in equal measure by offering a raft of reassurances for purchasers. Prices at the Marrakech resort are 18% below market value giving you instant locked-in equity and for two further reasons you simply can’t lose your money. Firstly a 7% per annum net rental guarantee for nine years backed by AXA. This equates to an income of some 13,000 euros a year, after costs, and if you take a 70% mortgage option, the rental guarantee should effectively mean that your property pays for itself.”

Adam continues, “Secondly a 100% buyback guarantee, also backed by AXA, is in place for a lengthy nine years. Healthy returns and capital growth are expected, almost a given considering the effects already felt by Vision 2010, but should you wish to sell at any point you are guaranteed to get the price you paid back in full. In the event of a dip in the market, unlikely as it is, AXA will make up the shortfall so your full price buyback is guaranteed. Both of these benefits, the guaranteed rental and buyback, are also fully transferable to the new owner should you happen to sell at any time within the nine year period. As are other developer freebies from one free return flight for two per annum for the first three years, free housekeeping for the same period and free personal use for two weeks per year without affecting the rental guarantee. This is an investment no-brainer.”

A few hours south in the chillout resort cum fishing town of Mirleft lies a sister Gardens of Fedala resort characterised by scented rose beds and verdant lawns. In the developer’s inimitable style these fully furnished beachfront villas with protected sea views and the same range of amenities from a restaurant to small boutique hotel also pay for themselves in a princely fashion. Priced at 27% below market value, the two and three bedroom villas with optional private pools come with the same 7% per annum net rental guarantee for nine years, backed by AXA, which should comfortably cover mortgage repayments – also offered at 70% LTV. The Mirleft project also, you guessed it, has the gift of one free flight for two per annum and housekeeping for the first three years from completion scheduled for June 2009 and two weeks personal use without adverse affect on the rental guarantee. Benefits are transferable to the new owner for sales within a nine year period.

Prices at Gardens of Fedala Marrakech start from 189,000 euros for two bedroom riads and 249,000 euros for three bedroom duplexes. 70% LTV status mortgages are available from the developer with interest rates currently at 6.6%.

Prices at Gardens of Fedala Mirleft start from 149,000 euros for a two bedroom villa and 169,000 euros for a three bedroom. 70% LTV status mortgages are available from the developer with interest rates currently at 6.6%.

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Gardens of Fedala, Marrakech Gardens of Fedala, Mirleft Gardens of Fedala, Marrakech Gardens of Fedala, Marrakech