A
Alan Cockayne
Banned
Alan - of Coralife-Style Consultants says
"Fair comments." to those who have found satisfaction and trust from reputable developers. Here are a few pointers for those about to or who are already investing in Egypt.
From the Architect down the chain of command through Managers to unqualified Task-Masters and untrained labourers, so far there are no Checks and Balances that are accountable for poor services and bad quality which may lead to unsatisfactory purchases. In many cases we see Developers and their banks not wanting to be responsible, other than for their profits. Buyers may not get a fair deal in the short term and maybe not in the longer term, when completed resorts are handed over to management companies.
In 25 years I cannot account for one completed residential resort that takes pride and place as an example of quality and good management in Sinai and Mainland Egypt. Let's hope this new generation of European assisted projects fulfil our high expectations.
Buying in Egypt is like preparing for an assault course, except there are no practice grounds for training purposes. Of course it may be a reasonably priced market but there is no room for error. It's your hard earned cash they want.
You do your research, visit the developments, choose your property, hire a lawyer (one each side) and go back home and hope..... Hope that your agent and previous client recommendations can stear you into a good purchase from all the hype around. You reserve one, pay the reservation fee and then you have a decision to make.
"Do I really want to go ahead?" Deal or no Deal?
Well it's not that simple. When you've paid your deposit, the action starts.... Or shall I say "then the Hassle" starts. That's because at present the system is engineered to create confusion. An Egyptian "shop-keeper mentality kicks in creating a barter system of what you get for your money, of how and when you should pay, of wanting to be in control of every part of the sale through three years of build and up to a further 10 years of resort completion. All leading to frustration and bad customer relations.
I state "They" because there are no projects without Egyptian partnership or infultration, joint venture or license to build.
They love it. They've thrived on this "grave-robbing" means of survival since Moses. We fall for it every time. But there are alternatives and by that I mean turning the situation around and for buyers to gain control of every step of the buying process. Be "Above the Line" and not a victim.
That means being in control of your own "purse strings." It means empowering Agents, Lawyers and Banks to utilise your money the safest way. Contracts for stage payments have legal implications, for both parties. However there are no inspectors working for us. Some are fortunate and find good contractors, however we hear lies every day. We are expected to part with cash at the flimsiest of excuse or threat.
Well not any more my friends. With the economic crisis, cash-flow is paramount in a new Buyer's Market. You have the power of refusal and arbitration if your lawyer (through your escrow account) is good enough to enforce it. You should argue because your Inspection Reports would back up the neglect and bad workmanship the builder has created. Final payments should only be made when every snag, problem, registration issue, all services have been connected, maintainance and management in place and GUARANTEES of construction and WARRANTIES for workmanship and equipment can be given, in writing and signed by the Developer; witnessed and endorsed by the legal authorities.
Ok, you say it's not that simple. It would be if there was a powerful Independent body of Surveyors and Inspectors available, working for you and your lawyer and not for the developers. A consumer watchdog licensed and qualified for just that. It works in Europe and the UK. We need one in Egypt as a force to get things done on the ground as things happen in the construction stages, not afterwards for litigation.
Why would clients expect estate agents to fault-find on their behalf? Many are Egyptian; it does not work that way.
Once again congratulations to those who came out unscathed.
For those who have doubts, your comments please.
Alan Cockayne
Coralife-Style Red Sea Riviera Real Estate Consultants.
"Fair comments." to those who have found satisfaction and trust from reputable developers. Here are a few pointers for those about to or who are already investing in Egypt.
From the Architect down the chain of command through Managers to unqualified Task-Masters and untrained labourers, so far there are no Checks and Balances that are accountable for poor services and bad quality which may lead to unsatisfactory purchases. In many cases we see Developers and their banks not wanting to be responsible, other than for their profits. Buyers may not get a fair deal in the short term and maybe not in the longer term, when completed resorts are handed over to management companies.
In 25 years I cannot account for one completed residential resort that takes pride and place as an example of quality and good management in Sinai and Mainland Egypt. Let's hope this new generation of European assisted projects fulfil our high expectations.
Buying in Egypt is like preparing for an assault course, except there are no practice grounds for training purposes. Of course it may be a reasonably priced market but there is no room for error. It's your hard earned cash they want.
You do your research, visit the developments, choose your property, hire a lawyer (one each side) and go back home and hope..... Hope that your agent and previous client recommendations can stear you into a good purchase from all the hype around. You reserve one, pay the reservation fee and then you have a decision to make.
"Do I really want to go ahead?" Deal or no Deal?
Well it's not that simple. When you've paid your deposit, the action starts.... Or shall I say "then the Hassle" starts. That's because at present the system is engineered to create confusion. An Egyptian "shop-keeper mentality kicks in creating a barter system of what you get for your money, of how and when you should pay, of wanting to be in control of every part of the sale through three years of build and up to a further 10 years of resort completion. All leading to frustration and bad customer relations.
I state "They" because there are no projects without Egyptian partnership or infultration, joint venture or license to build.
They love it. They've thrived on this "grave-robbing" means of survival since Moses. We fall for it every time. But there are alternatives and by that I mean turning the situation around and for buyers to gain control of every step of the buying process. Be "Above the Line" and not a victim.
That means being in control of your own "purse strings." It means empowering Agents, Lawyers and Banks to utilise your money the safest way. Contracts for stage payments have legal implications, for both parties. However there are no inspectors working for us. Some are fortunate and find good contractors, however we hear lies every day. We are expected to part with cash at the flimsiest of excuse or threat.
Well not any more my friends. With the economic crisis, cash-flow is paramount in a new Buyer's Market. You have the power of refusal and arbitration if your lawyer (through your escrow account) is good enough to enforce it. You should argue because your Inspection Reports would back up the neglect and bad workmanship the builder has created. Final payments should only be made when every snag, problem, registration issue, all services have been connected, maintainance and management in place and GUARANTEES of construction and WARRANTIES for workmanship and equipment can be given, in writing and signed by the Developer; witnessed and endorsed by the legal authorities.
Ok, you say it's not that simple. It would be if there was a powerful Independent body of Surveyors and Inspectors available, working for you and your lawyer and not for the developers. A consumer watchdog licensed and qualified for just that. It works in Europe and the UK. We need one in Egypt as a force to get things done on the ground as things happen in the construction stages, not afterwards for litigation.
Why would clients expect estate agents to fault-find on their behalf? Many are Egyptian; it does not work that way.
Once again congratulations to those who came out unscathed.
For those who have doubts, your comments please.
Alan Cockayne
Coralife-Style Red Sea Riviera Real Estate Consultants.
