crombiestone
New Member
It has been really interesting to read the posts in this forum . I thought people may like to hear about my owning and renting experiences .
I had visited various areas of Egypt over the years and holidayed in El Gouna in 2004 . I was aware of the real estate in the resort before going and was curious if a little wary so thought I would wait until checking out the resort before committing .
I basically fell for El Gouna immediately . At the time I paid £22000 for a 1 bed apartment . Prices in Hurghada were about half of that but I just didnt like it there and thought that the premium for El Gouna was worth it . We signed contracts and waited for the development to be built . It was a long wait but the apartment was handed over ,on time, in December 2006.
All in all after some alterations and buying of furniture I paid around £30,000 total original investment . I was very pleased with the whole process and because we had no loans on the property I was initially not too bothered about renting it out and even considered ditching the rat race and living there full time.
In about March 2007 we placed an ad on villa-vacation
In 9 Months we have had 5 rentals over a total of 9 weeks and have 2 bookings in the coming months (one a repeat visit) totalling around £1600 gross which is around 6% of original investment . This may not seem a lot but I have really not made much of an effort to Market the property and I am very happy with this return .It covers maintenance charges and gets me a couple of free holidays.Of course prices have now risen so if I had paid current prices for the apartment this return would be more like a 3% return. I had an enquiry about long term rental but rejected it as I didnt want too much wear & tear on the property .
I have previously posted on another forum asking holidaymakers whether they would consider a self catering holiday in Egypt . The responses were mixed but most cited that it would have to be cheaper than a hotel deal ,they didnt want to cook & clean and that Egypt was an unknown quantity for safety as to reasons why they wouldn't.
My counter argument was that I prefer the extra space and privacy of an apartment .I hate being woken by the cleaners every morning . I hate having to get up at 5 am to get a sunbed round the pool .I hate loud "entertainment" around the pool I hate to be tagged and have to eat the same bland food and drink cheap spirits that comes with an AI holiday and that you ultimately get what you pay for .I love however having my own living and separte bedroom ,my own sunbeds to put round a usually deserted pool or on the lagoon beach,sitting on the terrace looking out over a beautiful lagoon and eating where and when I like .
I did manage to persuade a couple who had stayed in a hotel in El Gouna to try self catering and they are now firm converts and are telling all of their friends.There is a market for both but I think that it is a more discerning and savvy client that will choose the self catering option and high standards will be expected.I think this will be an Easier task in El Gouna or Sahl than it would be in downtown Hurghada . Over pricing of property ,over supply of beds and limited flights are concerns for future years .
To summarise I would say that Egypt is a fantastic place to have a property and a great lifestyle purchase . If rental returns are important to you to cover loans I think that its a more risky investment.
This post got a bit long !! Hope its of some interest ?
I had visited various areas of Egypt over the years and holidayed in El Gouna in 2004 . I was aware of the real estate in the resort before going and was curious if a little wary so thought I would wait until checking out the resort before committing .
I basically fell for El Gouna immediately . At the time I paid £22000 for a 1 bed apartment . Prices in Hurghada were about half of that but I just didnt like it there and thought that the premium for El Gouna was worth it . We signed contracts and waited for the development to be built . It was a long wait but the apartment was handed over ,on time, in December 2006.
All in all after some alterations and buying of furniture I paid around £30,000 total original investment . I was very pleased with the whole process and because we had no loans on the property I was initially not too bothered about renting it out and even considered ditching the rat race and living there full time.
In about March 2007 we placed an ad on villa-vacation
In 9 Months we have had 5 rentals over a total of 9 weeks and have 2 bookings in the coming months (one a repeat visit) totalling around £1600 gross which is around 6% of original investment . This may not seem a lot but I have really not made much of an effort to Market the property and I am very happy with this return .It covers maintenance charges and gets me a couple of free holidays.Of course prices have now risen so if I had paid current prices for the apartment this return would be more like a 3% return. I had an enquiry about long term rental but rejected it as I didnt want too much wear & tear on the property .
I have previously posted on another forum asking holidaymakers whether they would consider a self catering holiday in Egypt . The responses were mixed but most cited that it would have to be cheaper than a hotel deal ,they didnt want to cook & clean and that Egypt was an unknown quantity for safety as to reasons why they wouldn't.
My counter argument was that I prefer the extra space and privacy of an apartment .I hate being woken by the cleaners every morning . I hate having to get up at 5 am to get a sunbed round the pool .I hate loud "entertainment" around the pool I hate to be tagged and have to eat the same bland food and drink cheap spirits that comes with an AI holiday and that you ultimately get what you pay for .I love however having my own living and separte bedroom ,my own sunbeds to put round a usually deserted pool or on the lagoon beach,sitting on the terrace looking out over a beautiful lagoon and eating where and when I like .
I did manage to persuade a couple who had stayed in a hotel in El Gouna to try self catering and they are now firm converts and are telling all of their friends.There is a market for both but I think that it is a more discerning and savvy client that will choose the self catering option and high standards will be expected.I think this will be an Easier task in El Gouna or Sahl than it would be in downtown Hurghada . Over pricing of property ,over supply of beds and limited flights are concerns for future years .
To summarise I would say that Egypt is a fantastic place to have a property and a great lifestyle purchase . If rental returns are important to you to cover loans I think that its a more risky investment.
This post got a bit long !! Hope its of some interest ?
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