Better than Money in the Bank!

[Peter Mitry]

I know that times are tough and that it has become very expensive and very difficult to borrow money. But for anyone with savings who is worried about leaving money in the bank and getting little or no return, there has never been a better time to buy property in Egypt.

Most properties are priced in Pounds Sterling and this year sterling has declined 25% against the Egyptian pound. Of course some Developers answer to this has been to switch to dollars or Egyptian Pounds but this has the effect of increasing prices. As a result, many have held off and there are still some great deals to be had in sterling; but be warned, most Developers will not hold on too long after Christmas before hiking prices so now is a good time to pick up a good deal.

In general the market is rising by 25 - 35% per annum so a good time to get in while property is still affordable.

Have a great Christmas and a Happy New Year!

 

[anokayperson]

yes if m&s can have a 20% sale why not the developers in egypt but would be very wary of any developer who has its post taken off this forum and not returned.we all now who that is ?????

mmmmmmmmm - I think this says it all, food for thought?

 

[Georgina]

I'm certainly hearing about lots of resales coming on the market. There is a magazine distributed in the hotels with El Gouna resales. The prices are ridiculously expensive but I think many will be open to offers in this current economic climate.

 

[Peter Mitry]

Resales?

I'm certainly hearing about lots of resales coming on the market. There is a magazine distributed in the hotels with El Gouna resales. The prices are ridiculously expensive but I think many will be open to offers in this current economic climate.

You are right Georgina; hopefully the weakness in sterling will not last too long before it bounces back. Developers are used to these fluctuations but individuals who need to sell now may well be open to deals.

 

[MaxyzK]

Peter - sorry but I disagree with you. Right now, Cash is King. Anyone with any reserves out there are in a strong position, and that is set to get even stronger. I wouldn't contemplate buying property in Egypt or anywhere just yet - people are running for cover, many can't get mortgages, tenants are also defaulting...all in all a gloomy picture. So many people have had their fingers burned. Right now there are vultures circling to pick the remains of investments gone sour, and if many of these investors like in the UK are not able to secure mortgages, then there will be desperate distress sales all over. Even with a measly 2% base rate in the UK, savers will enjoy golden times, not with the interest earned (that's a pittance) but because they will have the SPENDING power come what may.
Some say buy into the stock markets now, others say take up property. However, after Christmas the pickings will be richer, because people will be hit with post-Christmas bills as well as their mortgage payments! Just sit back and watch.

 

[danny]

Better than money in the bank

Talking of money in the bank.

I checked the interest paid on savings accounts in the HSBC Egypt yesterday and it made quite interesting reading.

Dollar accounts pay 1%
Sterling accounts pay 1.75%
Euro accounts pay 2%
Egypt LE pays 7.77%

If you have sterling at the moment and are not happy with the exchange rate I think the interest paid on LE more than compensates for the low exchange.
If you have dollars you need your bumps feeling.

 

[M Butler]

I'm certainly hearing about lots of resales coming on the market. There is a magazine distributed in the hotels with El Gouna resales. The prices are ridiculously expensive but I think many will be open to offers in this current economic climate.

We were told the other day that someone in El Gouna was selling a villa for $500,000 and he accepted $250,000. Astonishing!!!

Margaret

 

[Lysos]

No, not astonishing; reality in today's market.

 

[petehall]

Peter - sorry but I disagree with you. Right now, Cash is King. Anyone with any reserves out there are in a strong position, and that is set to get even stronger. I wouldn't contemplate buying property in Egypt or anywhere just yet - people are running for cover, many can't get mortgages, tenants are also defaulting...all in all a gloomy picture. So many people have had their fingers burned. Right now there are vultures circling to pick the remains of investments gone sour, and if many of these investors like in the UK are not able to secure mortgages, then there will be desperate distress sales all over. Even with a measly 2% base rate in the UK, savers will enjoy golden times, not with the interest earned (that's a pittance) but because they will have the SPENDING power come what may.
Some say buy into the stock markets now, others say take up property. However, after Christmas the pickings will be richer, because people will be hit with post-Christmas bills as well as their mortgage payments! Just sit back and watch.

yep..i think that's pretty sound advice.
I am always looking at property but i wouldn't touch a thing at present, things are going to get a whole lot worse, find somewhere that will offer the best interest possible and just sit on your cash for now..at least you know it's safe and your in control.
cheers ph