LOFT
ZACH
Natasa, a Senior Consultant Team Leader at a major U.S. company, lives in Serbia and already owns her primary residence and a rental property there. After a successful business trip to Casablanca, she recognized Morocco’s growing international appeal and economic potential, especially with the upcoming World Cup impact.
The Investment
Location: Casablanca, prime city-center location
Property Type: Modern 90m² loft with 2 bedrooms, parking, and Art Deco-inspired design
Purchase Price (Negotiated): €230,000 (down from the initial €250,000)
Furnishing & Décor: €35,000
SKYRT Fees (7% of €230,000): €16,100
Notary Fees (7% of €230,000): €16,100
Total Upfront Investment: €125,200 (equity + fees + furnishing)
Rental Income (Airbnb):
Nightly Rate: €130
Occupancy Rate: 80% (24 nights per month)
Gross Monthly Rental Income: €3,120
Savings from Negotiation:
Original Purchase Price: €250,000
Negotiated Purchase Price: €230,000
Total Savings from Negotiation: €20,000
Financial Breakdown
Loan & Financing
• Bank Financing (70%): €161,000
• Loan Term: 25 years
• Interest Rate Before Negotiation: 5.5%
• Negotiated Interest Rate: 5.3% → €6,240 saved in interest payments
• Monthly Mortgage Payment: €1,054 (instead of €1,088, saving €34 per month)
Operating Costs
• Property Management (20% of rental income): 20% × €3,120 = €624
• Maintenance, Utilities & Taxes: €200
• Total Monthly Expenses (Mortgage + Management + Maintenance): €1,654
Monthly Cash Flow Calculation
• Gross Rental Income: €3,120
• Total Expenses: €1,654
• Net Monthly Cash Flow: €3,120 – €1,654 = €1,466
Return on Investment (ROI)
• Annual Net Cash Flow: €1,466 × 12 = €17,592
• Cash-on-Cash Return (Return on Equity):
(€17,592 / €125,200) × 100 = 14.04%
• Total Property Yield:
(€3,120 / €230,000) × 100 = 1.36% monthly yield or 16.32% annual yield
