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Good News For Bad People

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Nonetheless, "July's growth in lending to individuals slowed from the recent trend," said British Bankers Association (BBA) spokesman David Dooks, “this could have reflected consumers waiting for the widely anticipated cut in interest rates."

Miles Shipside, Commercial Director of Rightmove ( ), comments, “The belated but welcome drop in interest rates will be a real boost for sentiment in the market and a springboard for a better 2006.”

However, more than half of all mortgage lenders have failed to pass on the full Bank of England interest rate cut to borrowers, and those that haven't done so already look unlikely to do so in the future.

“How these things usually work is that if the lender is going to pass on the full cut they announce so fairly quickly”, Ray Boulger of John Charcol mortgage advisers.

Several lenders stated the rates on fixed mortgage deals from some providers had already started to drop in anticipation of the cut in interest rates earlier this month, while others argued that replicating the rate cut is not necessary because they did not pass on past increases.

A few lenders, including the Halifax, the UK's largest mortgage lender, immediately reduced its rates, but others have held off cutting borrowing costs or have trimmed them by less than the bank's quarter of a percent.

Despite the rate cut anticipation and the increases in the take-up of fixed rate deals, the British Bankers Association (BBA) said that net mortgage lending by its own members slowed down last month.

Rightmove in its latest house price index has indicated that house sales have slowed down. The numbers of completed sales for the three months from April to June are the lowest since 1998. To improve the chances of achieving sales, many new sellers are adjusting their prices in an attempt to undercut the competition. Asking prices have now dropped by an average of 1.2% over the past two consecutive months.

Rightmove believe that the housing market is gradually recovering, but “there is currently too much unsold property still available to expect anything other than a continuation of static asking prices this year”.

Miles Shipside adds, “Sellers are finally becoming more realistic on their asking prices, which when combined with cheaper mortgages and rising wages, means that more buyers can now afford to enter the market.” He went on to point out that, “We still need more first time buyers for the long term health of the property market.”

Financial comparison site, Moneynet ( ), puts the current first time buyers' average joint salary at £39,382, with an average mortgage amount required of £135,239 constituting a 66% borrowing on the cost of a property. This means that with sellers asking prices remaining static, or even falling, and wages gradually rising, for many potential first time buyers, there is an increase in the realistic prospect of getting onto the property ladder.

Halifax hoped that the interest rate reduction by the Bank of England would, "reduce mortgage payments as a proportion of gross income for the average new borrower from 20% to 19%, the average for the past 20 years and well below the 34% peak in 1990".

With the mortgage market especially competitive at present and rate comparison sources easily accessible, lenders who do not offer reasonable rates are liable to lose out. All this appears to be good news for buyers as Rightmove states, “there are now clear signs that the market is making sensible adjustments in prices to improve buyers' affordability.”

Good News For Bad People

We all know that, amongst other factors, a healthy property market relies upon a thriving tourist economy. Of utmost importance to this formula is the transport system to and from our chosen country. Free, easy passage for visitors via an efficient road system and public transport, as well as good communications for vital supplies, improves the quality and appeal of any investment location, and Morocco makes no exception. A destination that is easily accessed wins points over other locations. No one is clearer on this point than Morocco's forward-thinking King Mohammed VI who is intent on increasing the country's infrastructure by the year 2010 in his Vision 2010 Plan.

The announcement that a motorway construction programme to build a target 160 km of road per year until 2010 comes as no surprise within the rapidly expanding economic arena of Morocco. The result will be greatly improved communications to all areas of Morocco and a further increase in visitors who regard Morocco as an advanced country that competes well with EU standards. The road construction plan follows an earlier successfully completed project to build 100 km per year for the four years running up to 2004. By 2010, Morocco will be well-equipped with a total of 1,450km of new roads, projecting it further onwards as a leader in the worldwide property investment market place.

Since 2001 and the launch of the King's Vision 2010 plan, more than 10,000 new hotel rooms have been constructed and thousands renovated. King Mohammed VI is specific in his aim to increase tourist numbers to 10 million visitors by 2010 and the new roads will go a long way to achieve this aim: the six new five star resorts currently under construction will be well served by the new motorway systems which will give them a fittingly up-market profile and infrastructure so vital to attracting investors to the area. The 320 km stretch from Fes to Oudja will directly link the Mediterranea Saidia resort, greatly improving communications and cutting valuable travel time from the airport to a mere 30 minutes.

The liberalization of air transport to Morocco will significantly increase direct air traffic between European and Moroccan cities. This is perfectly in line with Morocco's drive to encourage significant growth to its tourist industry, which is currently in full swing. An influx of extra tourists is set to arrive in Morocco this year, with new EasyJet flights announced from Luton to Marakesh and Gatwick to Marrakesh from July 4th 2006 as well as Ryanair offering direct flights from Marseilles to Fez, Marrakesh and Oujda. The new motorways are perfectly timed to cater for the increased flow of passengers these flights will eventually bring and will actively encourage foreigners to invest further in property in Morocco, while slowly pushing prices upwards.

The new motorways will cover the following stretches:

Casablanca - el Jadida:28km

Tetouan - Fnideq:28km

Settat - Marrakesh:145km

Out of new port of Tanger Med:54km

Marrakesh - Agadir:233km

Fes - Oujda:320km

So, it seems, due to King Mohammed VI and his progressive vision for the future of Morocco, all necessary policies and improvements to the infrastructure are underway and poised in readiness for a successful few years ahead for investors in Morocco. While there are still many bargain off-plan investment opportunities available today, investors are urged to take a closer look at the many options currently on offer.

Investment Experts at propertyshowrooms.com are confident that exciting returns are waiting just around the corner for shrewd and timely investors and they will gladly share their knowledge with you regarding current investment opportunities in Morocco or in any of the other worldwide emerging markets.

For more information regarding property investment in Morocco, please visit http://www.propertyshowrooms.com/morocco

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Both R.green & Stephen Binge are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

R.green has sinced written about articles on various topics from Finances, Insurance and Finances. . R.green's top article generates over 6600 views. to your Favourites.

Stephen Binge has sinced written about articles on various topics from Finances. IPIN (International Property Investment Network) operated by Propertyshowrooms.com is a global collaboration of agents, developers and investment specialists bringing its members only the most highly qualified and niche property investment opportunities.. Stephen Binge's top article generates over 6600 views. to your Favourites.

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