Why Choose Rental Investment in Morocco?

Who has never considered one day becoming an owner to rent their home? When you have money to invest and you already have your main residence, renting is an investment that seems obvious. But, in addition to building wealth, there are multiple reasons to invest in a rental property, such as generating a regular source of income or reducing taxation.

Building wealth

Stone has always been and will remain a safe haven. Whether you already own your home or not, there is no shortage of opportunities to acquire a property in order to rent it. For example, it is common to find a business at an attractive price, but too far from work or too small for home. Of course, the property is not suitable for its own use, but if it can generate good profitability, its purchase should be considered.

Becoming a homeowner to rent can also be a way to start building your wealth even when you don't have the borrowing capacity to buy your main home. And it is not uncommon to see a bank grant another loan for a second rental purchase when the repayments of the first loan are going well. Without being a real estate professional, it is thus possible to build a real estate asset over time, which you can pass on to your loved ones.

Generate a stable monthly income

Many riskier investments offer irregular payouts and less predictable returns. However, nowadays, many people are looking for a secure investment, especially people who need a pension supplement. By becoming an owner to rent, you get a regular and stable income.

It is also recommended to buy as soon as possible, to borrow over a long period of time and reduce the financial effort. This allows you to have finished paying for the property when you stop working, and to receive all the rent. On average, rented homes in Morocco generate a profitability of 6% gross. The rent received can be used to repay all or part of the monthly bill if the property was financed via a loan, or constitute additional remuneration for the investor.

Lower your taxes

Owners can deduct from the gross rents certain real estate expenses necessary to manage the property, such as: condominium fees; property taxes; mortgage interest; communal taxes; maintenance and renovations; maintenance and renovations; insurance; as well as real estate management fees. This reduces the base used as a basis for calculating the taxes to be paid.

In the event that the expenses exceed the rental income for the year in question, the loss generated is even carried over to other sources of income and makes it possible to lower its overall taxation. The purchase price is also depreciable gradually. This means that we determine a calculated charge, called depreciation, corresponding to a percentage of the price of the property. Each year, this amortization is deducted from taxable income, thus reducing the tax base and the resulting tax.

Becoming an owner in order to rent can be done at any time in life and meets a wide variety of goals. For some people, rental investment makes it possible to build wealth, while for others, the priority is to generate a stable and regular source of income. Thanks to the game of deductions and amortizations, you can also reduce the amount of your taxes. Whatever the motivation behind the investment, buying to rent is in the majority of cases a good investment that owners do not regret.

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