Three overseas property hotspots

8 December 2007

A three-hour flight from London, Morocco has year-round sunshine.

Inland at Marrakech, traditional town houses are popular but new built property is increasing. At Domaine de l’Akhdar on the outskirts, a new scheme of Moorish-style villas is being built, with views over the snow-capped Atlas Mountains. Three-bedroom villas, with patios, gardens and swimming pools, cost from £249,000 to £310,800, again through Winkworth.

A notaire oversees the transaction on behalf of purchaser and vendor. Your lawyer should verify the title and establish it has been properly registered. Ask for dual translations of documents you have to sign. Buying costs, including notary fees, stamp duty, registration and other liabilities, work out between 5% and 7% of the purchase price; lawyer’s fees are extra. Capital gains tax is 20% within the first five years; for more than five years, it is 5%, and there is no tax after 10 years.

Dominican Republic

Bordered by Haiti, the Dominican Republic is on the island of Hispanola, the second largest in the Caribbean, and has forested mountains as well as white sand beaches. Once dependent on sugar, the country is now a popular tourist destination; direct flights take around nine hours.

Prices are low, but they are rising, particularly along the north coast around Sousa and Cararete. The currency is the peso, but property prices are in dollars, so the strength of sterling works in investors’ favour: resale studio flats go for just $25,000 and houses $50,000, through local agent Juan Perdomo. He has a three-bedroom farmhouse with grazing land and mountain views for $70,000, a one-bedroom beachfront condo with swimming pool for $39,960, and a two-bedroom villa for $130,000.

New developments are also springing up. On the north coast, the Amber Coast Beach Resort promises golf, a spa, marina, swimming pools and tennis courts. Off-plan prices start from £75,000 for a studio and £150,000 for a two-bedroom flat. Thai-style villas start at £239,000, rising to £895,000 for a six-bedroom, six-bathroom house with a private pool, through Winkworth.

But the most prestigious is Cap Cana, on the island’s south-eastern tip, 10 minutes from Punta Cana airport. The $1.5bn estate will have five golf courses, a l,000-berth marina, a five-star spa hotel and equestrian centre.