getting out of Egypt / resale

[crombiestone]

You r right too crombistone me and my buisness partner r buying in Regency beach 2beds 92m2 ,we r still hesitating about it, have read different appinions on this forum to suggest that both sides have good point of view about resale,but if anybody had to choose between Egypt and somewhere else for a low cost investment, will Egypt still remain to be their first choice ?

Egypt is undeniably cheap . If you are realistic about your gains and can afford to bear a potential loss ,then why not ?

Are you familiar with the area? I wouldn't advise anyone buying without visiting . This aint no Spain! You need to know what you are buying into.

If you know Egypt and it suits you then you will at the very least have a fantastic place for holidays .

 

[realestatemart]

Egypt is undeniably cheap . If you are realistic about your gains and can afford to bear a potential loss ,then why not ?

Are you familiar with the area? I wouldn't advise anyone buying without visiting . This aint no Spain! You need to know what you are buying into.

If you know Egypt and it suits you then you will at the very least have a fantastic place for holidays .

Thats tottal 100% true no one should buy before visiting

 

[try-one]

I think re-sale in Egypt needs more maturity, it makes sense for people buying to look at resale as they would save money, however the infrastructure in terms of agents may not be ready.
Two weeks ago I checked one of the property portals and contacted about five agents offering egyptian properties, only one came back with a response to my request to sell my property and didn't really got far.

 

[realestatemart]

I think re-sale in Egypt needs more maturity, it makes sense for people buying to look at resale as they would save money, however the infrastructure in terms of agents may not be ready.
Two weeks ago I checked one of the property portals and contacted about five agents offering egyptian properties, only one came back with a response to my request to sell my property and didn't really got far.

not every one is good so don't be disapointed but it takes time to sell

 

[Peter Mitry]

The resale market is in its infancy; there is so much available off plan at the moment. My view of the market in the Red Sea area is that you should consider holding your investment for at least five years. In this time the market will become more mature, property values will rise and those who have bought in good locations will reap the rewards. My personal preference is front line beach; I would never buy anywhere else for investment.

 

[realestatemart]

The resale market is in its infancy; there is so much available off plan at the moment. My view of the market in the Red Sea area is that you should consider holding your investment for at least five years. In this time the market will become more mature, property values will rise and those who have bought in good locations will reap the rewards. My personal preference is front line beach; I would never buy anywhere else for investment.

Beach front is the dream of each one of us so if any can afford sure should go for it and don't take other choices if you have the budget

 

[M Butler]

I think re-sale in Egypt needs more maturity, it makes sense for people buying to look at resale as they would save money, however the infrastructure in terms of agents may not be ready.
Two weeks ago I checked one of the property portals and contacted about five agents offering egyptian properties, only one came back with a response to my request to sell my property and didn't really got far.

We are going for a re-sale for 2 reasons. 1. You get what you see. 2. We want early access to our home in the sun.
I have also contacted agents and have to say that I have been inundated with e-mails and info. from someone based in Cape Town. Also had great help from the "locals" in Hurghada - George, Peter, Gianni, Rolf, etc.

Margaret

 

[realestatemart]

We are going for a re-sale for 2 reasons. 1. You get what you see. 2. We want early access to our home in the sun.
I have also contacted agents and have to say that I have been inundated with e-mails and info. from someone based in Cape Town. Also had great help from the "locals" in Hurghada - George, Peter, Gianni, Rolf, etc.

Margaret

So Margrete you bought your dream villa in El Gouna

 

[M Butler]

So Margrete you bought your dream villa in El Gouna

Going back down next weekend to finalise - if the engineering report is OK.
If it's not, we will have to start looking again.

Margaret

 

[realestatemart]

Going back down next weekend to finalise - if the engineering report is OK.
If it's not, we will have to start looking again.

Margaret

that is good

 

[Riccal]

The resale market is in its infancy; there is so much available off plan at the moment. My view of the market in the Red Sea area is that you should consider holding your investment for at least five years. In this time the market will become more mature, property values will rise and those who have bought in good locations will reap the rewards. My personal preference is front line beach; I would never buy anywhere else for investment.

I agree entirely. Most attempts now to resale an off plan for profit are going to come up against cheaper properties available with a slightly longer completion date being marketed with no "profit taker" (except the builder) in the process. It looks like the rental market should provide better than average yields on reasonable quality inventory and I believe this slightly more realistic investment term (5 yrs plus) should help to not fuel an oversupply in this sort of property and hopefully avoid a costa del sol scenario (talk about a buyers market). With the only condition that I guess its possible that everyone tries to pile into the resale market in 5 years time in one wave.
By that time maybe awareness and infrastructure will have risen to meet supply.

By the way, whilst I can see the charms of a beachfront apartment has anybody taken much of a look at the city locations in Egypt. I have sold quite a lot of city centre investments over the past 3 or 4 years and I often think it ticks more boxes than areas driven by pure tourism.

Rick

 

[Peter Mitry]

Hi Rick and welcome to the forum; your contribution is very welcome and I take your point on city centre property. In Egypt we are focusing on Hurghada and Sharm but there is no doubt that for rental returns and Capital growth capital cities are the best performers. Sophia & Bucharest have done brilliantly in recent years and I think that Cairo too will prove to be a strong market.

 

[Riccal]

City stuff

Hi Rick and welcome to the forum; your contribution is very welcome and I take your point on city centre property. In Egypt we are focusing on Hurghada and Sharm but there is no doubt that for rental returns and Capital growth capital cities are the best performers. Sophia & Bucharest have done brilliantly in recent years and I think that Cairo too will prove to be a strong market.

Hi Peter and thanks for the welcome.
Digging to see whats available in city locations in egypt at the moment but very early days. may just stick to the simpler concept of beachfront at the outset and bolt on city projects as progress.

Cheers

Rick

 

[Lsab]

I know that Regency have an upcoming development in Cairo.

 

[realestatemart]

I know that Regency have an upcoming development in Cairo.

Yeah that is correct ans Dama Properties as well have 2 or 3 amazing projects in cairo, but sure prices are more expensive

 

[realestatemart]

Hi Peter and thanks for the welcome.
Digging to see whats available in city locations in egypt at the moment but very early days. may just stick to the simpler concept of beachfront at the outset and bolt on city projects as progress.

Cheers

Rick

HI Rick, I think its a good thinking to stick at the moment with beach front as its the demand of most purchasers at the moment, as most of them coming from big cities and i think they are looking for change and calm, and enjoying the sea & Sun

 

[Jeremy Sturgess]

Hi Peter and thanks for the welcome.
Digging to see whats available in city locations in egypt at the moment but very early days. may just stick to the simpler concept of beachfront at the outset and bolt on city projects as progress.

Cheers

Rick

Hi Riccal

Welcome to the forum. There are several large off plan schemes around Cairo and many more planned. A lot of them have sold well like Allegria and Kattameya Dunes. In terms of buying existing property one of the problems you may encounter is getting good title. I tried to buy an apartment in Cairo a few years back and was offered financing as a foreigner by First Taamir mortgage co (65% LTV 10 year term 14% rate in Egyptian Pounds)- the problem was that whatever I looked at, and to be fair these were mainly central appts in old buildings in Zamalek and Mohandisen, these buildings had pretty unclear title history and most were not registered making it a risky proposition for me as a foreigner and unmortgageable. I wish I had bought it anyway as it was only USD 650 psm for 1500 sq mtrs in Zamalek with views over the nile and has probably doubled or tripled at least since ! We were renting it at the time for USD 1,100 pm so prospective yield was 13%.

This is one of the advantages of new off plan property in that its easier to get clean title. Most of the land has been allocated by the Tourist Development Authority (TDA) to the developer and provided you are dealing with a reputable developer you should be ok.

Yours

Jeremy

 

[Jeremy Sturgess]

Hi Riccal
I wish I had bought it anyway as it was only USD 650 psm for 1500 sq mtrs in Zamalek with views over the nile and has probably doubled or tripled at least since ! We were renting it at the time for USD 1,100 pm so prospective yield was 13%.

Jeremy

Please note 1500 sq mtrs should have read 150 sq mtrs. I am not that rich !

Jeremy

 

[realestatemart]

Please note 1500 sq mtrs should have read 150 sq mtrs. I am not that rich !

Jeremy

We all Hope to be that Rich my friend

 

[Riccal]

Hi Riccal

Welcome to the forum. There are several large off plan schemes around Cairo and many more planned. A lot of them have sold well like Allegria and Kattameya Dunes. In terms of buying existing property one of the problems you may encounter is getting good title. I tried to buy an apartment in Cairo a few years back and was offered financing as a foreigner by First Taamir mortgage co (65% LTV 10 year term 14% rate in Egyptian Pounds)- the problem was that whatever I looked at, and to be fair these were mainly central appts in old buildings in Zamalek and Mohandisen, these buildings had pretty unclear title history and most were not registered making it a risky proposition for me as a foreigner and unmortgageable. I wish I had bought it anyway as it was only USD 650 psm for 1500 sq mtrs in Zamalek with views over the nile and has probably doubled or tripled at least since ! We were renting it at the time for USD 1,100 pm so prospective yield was 13%.

This is one of the advantages of new off plan property in that its easier to get clean title. Most of the land has been allocated by the Tourist Development Authority (TDA) to the developer and provided you are dealing with a reputable developer you should be ok.

Yours

Jeremy

Hi Jeremy

Apologies for the delay in responding. Just returned from Tangiers. Theres a market that I think is still quite good with the ongoing business development on Tangier. Having said that I sometimes find myself in a school of one with regard to Morocco as everyone else seems to think that losing the Expo in 2012 has sunk the market.

I understand completely your comments re title etc. in the cities. If I started to look at urban developments they would definitely be off plan. In the short term however I guess I will be joining the Red Sea train as being simpler.

What do you think will be the timetable for non developer finance? My understanding is that the commercial lenders will be able to enter the market locally. Will that go hand in hand with developer finance allowing better leverage do you think? Other markets always show an upward blip on the back of mortgages so can only be a good thing.

Cheers

Rick