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Fez
Fez



23-year-old Jenny Barnard’s father, Jim, has bought a large £22,000 house in the Moroccan city of Fez. Having recently left university, Jenny and her boyfriend Jonathan plan to renovate it in a year on a budget of £15,000, and hope to sell it in the foreign buyer's market £80,000, making a total pre-tax profit of £43,000.


The three storey house with roof terrace is tucked away down a labyrinth of alleyways. Its rooms look out onto its magnificent central courtyard, a typical Moroccan design. On the ground floor are two reception rooms, a kitchen and small toilet. On the first are two large bedrooms, which they will kit out with kitchenettes and ensuite bathrooms so they can be rented out separately. There are two further bedrooms on the second floor and on the roof a room looks over the terrace.
Fez

The house needs a lot of work to appeal to their market, and Jenny and Jonathan are complete developing novices in a foreign culture. On top of that, the market they’re going for – foreigners looking for restored houses in Fez – doesn’t actually exist yet. Nothing like this has sold before. They certainly have their work cut out for them...

Budget
Property price: £22,000
Restoration budget: £15,000
Total: £37,000



The first job is to restore the roof, and unsurprisingly, given the age of the house, they discover rotten beams. Over the months, Jenny and Jonathan need to learn about traditional materials and techniques, and the difference in culture makes fairly simple tasks like researching prices for building materials slow and difficult. They also discover that the narrow streets make it difficult to dispose of waste – and the mules used to cart it away aren’t cheap.

In February 2006, seven months into the project, father Jim comes over to inspect the work and research the sale market. The nearest similar situation is in Marrakech, which has been booming for some years, and he meets a Marrakech agent who thinks that Fez’s direct flights to Europe could lead to Fez becoming similar.

However another expert confirms that there is no market for restored houses like theirs in Fez. But if they can leave the money tied up here for a few years, they could see the return they want. It’s a familiar story for other foreign investors in Morocco.

Nevertheless, Jim decides to invest in a second property, and he, Jenny and Jonathan decide to establish a company restoring houses in Morocco. Buying property here is complex, especially because it is common for a single property to be jointly owned by several members of a family – or even several different families. Eventually they find a spacious two-bedroom house for around £14,000 including fees.

Meanwhile, a year after they began the project, the house is nearly finished. The renovation has gone wonderfully smoothly for two novices like Jenny and Jonathan. They have established a good network of friends, suppliers and builders, and despite the initial fantastically steep learning curve, they now feel comfortable living and working in Fez.



Fez
There’s no doubt that Jonathan and Jenny’s care and attention to detail has paid off. For a first-time project this is a superb piece of work. Two of Fez’s main estate agents value the house above their initial estimates, but buyers are thin on the ground. It’s a matter of waiting until the market picks up.

Final budget
Property and restoration cost: £40,000
Final valuation: £101,000
Pre-tax profit: Profit: £61,000


Buying in Morocco
Property in the land of souks and spices
Interview with Sarah Beeny
We talk overseas property
Investing Responsibly
Developing with a conscience
Ten Essential Steps for Investors
Handy hints before you take the plunge

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