Hurghada's Resale Market

[distant dreamer]

Mark, I believe that Easyjet are planning to fly to Hurghada airport very soon (they may have already started). I also believe that other low cost carriers are considering flying to Hurghada as it's a growing market.

With regards to the Tax issue you make a valid point. But unlike other countries there is no VAT charge on off plan property.

I do however agree that other countries such as Morocco have better taxation rules ie. they have a double tax treaty rule with the UK where CGT is only payable once in Morocco (20% if you sell 1-5 years, 10% is you sell 5-10 years and 0% if you sell after 10 years). Also as there is a double tax treaty agreement with the UK no inhetritance tax is payable both in Morocco and the UK.

The Egyptian authorities should go along the same lines and introduce a double tax treaty rule with the UK and say charge 5% or 10% CGT only which will be payable only once in Egypt and then no tax payable in the UK

Red,

I don't think you've got it right. I heard that Egypt does have a double taxation with the UK. But even with countries that do have this in place, the difference between what you pay in that country and the UK rate would have to be paid in the UK, depending on your circumstances.

Also, I heard Easyjet are not continuing the Hurghada Route, they are only doing it for a few weeks. However, I think they will continue the Sharm route, which is good news for those that have invested there!

 

[redangel7861]

Red,

I don't think you've got it right. I heard that Egypt does have a double taxation with the UK. But even with countries that do have this in place, the difference between what you pay in that country and the UK rate would have to be paid in the UK, depending on your circumstances.

Also, I heard Easyjet are not continuing the Hurghada Route, they are only doing it for a few weeks. However, I think they will continue the Sharm route, which is good news for those that have invested there!

DD.

I've taken this quote from a well established property journal:

"According to Global Property Guide, Egypt has the highest rental yields in the world. Growth prospects also look good with Easyjet opening two routes from Gatwick to Sharm El Sheikh and Hurghada in April 2008"

So it looks like Easyjet will be flying to Hurghada unless you can tell me where you've got your information from I'll have to presume the article is true.

regards

RED

 

[crombiestone]

Easyjet

DD.

I've taken this quote from a well established property journal:

"According to Global Property Guide, Egypt has the highest rental yields in the world. Growth prospects also look good with Easyjet opening two routes from Gatwick to Sharm El Sheikh and Hurghada in April 2008"

So it looks like Easyjet will be flying to Hurghada unless you can tell me where you've got your information from I'll have to presume the article is true.

regards

RED

Easyjet are not "opening" two routes to Egypt ,they are inheriting them from the buyout of GB airways . They have an obligation to fulfil the flights to Hurghada that GB airways have already sold ,this obligation ends at the end of April 25th to be precise. The property journal is therefore incorrect to say that the route to Hurghada starts in April ,it ends in April . Check the Easyjet website if you want .

GB stoppped the operation of Summer flights to Hurghada last summer and Easyjet have followed suit . It remains to be seen whether they will restart the route this winter but unless it is deemed profitable it will probably not.

Easyjet did not buy GB Airways for its routes It bought its UK airport slots ,the planes belonged to BA .As previously mentioned ,flights of this length are not popular to Low cost airlines as they prefer to use one plane for 2 or 3 flights a day . On the Egypt route thay can only use the plane once .

What is also worrying to me is that XL ,who have operated a year round route from Manchester since 2005 have decided to stop operating for the summer this year which to me signifies a drop in demand.

 

[Mark .Y.]

Red,

I don't think you've got it right. I heard that Egypt does have a double taxation with the UK. But even with countries that do have this in place, the difference between what you pay in that country and the UK rate would have to be paid in the UK, depending on your circumstances.

Also, I heard Easyjet are not continuing the Hurghada Route, they are only doing it for a few weeks. However, I think they will continue the Sharm route, which is good news for those that have invested there!

Red,

dd is absolutely correct. When these reciprocal agreements are in place you are entitled to subtract the amount you have paid in the foreign country from the amount you pay HMRC.
So, if you have a gain of £4,000 above your CGT tax-free band (and don't forget you have an annual exemption of around £8,000 in the UK before you pay CGT) and you pay £2,000 abroad then you would only pay £2,000 in the UK. Should you be married, this might lead you to ensure that the property you buy is owned by both husband and wife so you benefit from two tax-free allowances.
IHT is payable ay 40% on your worldwide assets above the tax-free band (currently around £280,000 I think),although don't forget there is no IHT between spouses.
Don't believe all you read in well-established property journals !!

Mark .Y.

 

[Jeremy Sturgess]

Having had a conversation with West Side Village's team today, the subject of resale came up. I was asking about pre release prices and real market value and just how good investments are likely to be here. He made a valid point of stating that this will depend on other developments , ie what has the competative edge, be this finishes, location and price..

When do you think the resale market will kick in? Will these developments make decent money? Are the predicted figures realistic?


I am buying for investment but there is a sense of personal enjoyment for me as this is the first one. Ultimately though, i am wanting to make cash on this and then make more. The good thing is, in Egypt this can be done with low outlay. We could not achieve this easily in the UK..

Im not sure who the buyers of resale are likely to be and I question whether enough profit can be made to enable progression as an investor

Would be nice to here peoples thoughts

Im sure that as the mortgage market takes off the resale market will pick up too. The lack of credit definetly keeps a lid on prices but with Tamweel and Amlek from Dubai moving in I think financing opportunities will improve probably for locals in the first instance and then overseas buyers.

The other important thing to bear in mind I believe is the mix of buyers in any one scheme. Ideally what you want is a good mix and not just one nationality and I always want to see strong participation by the local market. That way if many people try to exit at completion they arnt all looking for the same type of buyer and they arnt neccessarily all foreign. This is why Bulgaria has struggled recently with some reporting difficulty at reselling at the price they paid.

Unless there is already an established aftersales market like at Ein Sokna or El Gouna where local interest is strong its therefore important to look carefully at the nationality mix of buyers in your scheme before making a decision.

 

[Home Buy Overseas]

Im sure that as the mortgage market takes off the resale market will pick up too. The lack of credit definetly keeps a lid on prices but with Tamweel and Amlek from Dubai moving in I think financing opportunities will improve probably for locals in the first instance and then overseas buyers.

The other important thing to bear in mind I believe is the mix of buyers in any one scheme. Ideally what you want is a good mix and not just one nationality and I always want to see strong participation by the local market. That way if many people try to exit at completion they arnt all looking for the same type of buyer and they arnt neccessarily all foreign. This is why Bulgaria has struggled recently with some reporting difficulty at reselling at the price they paid.

Unless there is already an established aftersales market like at Ein Sokna or El Gouna where local interest is strong its therefore important to look carefully at the nationality mix of buyers in your scheme before making a decision.

valid point...

that is an interesting angle on things .. much appreciated

 

[Namitaroy]

Property Resale - Singapore real estate property investment at Property Guru

There is a lot of information regarding this topic on the PropertyGuru website.
Extensive Property Resale options, home search, property search & Listings of new homes for sale such as residential, HDB, Condominiums.

 

[El Gouna Property]

There is a lot of information regarding this topic on the PropertyGuru website.
Extensive Property Resale options, home search, property search & Listings of new homes for sale such as residential, HDB, Condominiums.

Its true that resale market is working more now a days as investors feel its more safe investment now.

 

[propertywatch1]

Contrary to all the bad publicity in Hurghada it is still possible to buy and SELL property here.
We have bought 4 properties in Hurghada and now sold 3 of them very quickly and with no hassle.
It all comes down to buying in the right place and making sure all the correct paperwork is in place.

We never bought off plan...We made sure the bricks and mortar (cement) were built and each property had the correct land registry and paper work.
This means re-selling is then easy.

By the way for anyone who has not registered their property for the new property tax you CAN still do this...it does not matter that the so called deadline has expired.

 

[danny]

Contrary to all the bad publicity in Hurghada it is still possible to buy and SELL property here.
We have bought 4 properties in Hurghada and now sold 3 of them very quickly and with no hassle.
It all comes down to buying in the right place and making sure all the correct paperwork is in place.

We never bought off plan...We made sure the bricks and mortar (cement) were built and each property had the correct land registry and paper work.
This means re-selling is then easy.

By the way for anyone who has not registered their property for the new property tax you CAN still do this...it does not matter that the so called deadline has expired.

I think that there is now a good stock of re-sale properties in Hurghada.

Why take a risk on pre-constuction when there is such an abundance of ready to move into properties which can be used and rented out straight away, therefore realising an immediate yield, for not much more than there original cost price.

Whilst there is still a credit crunch and finance is still hard to come by you can pick up some bargains.

I too have bought 3 properties and sold 2 with the 3rd one up for sale fully furnished for virtually the same price as the developer is selling unfurnished units for.

I agree if you buy in the right spot or at the right price and are not greedy you should sell easily.

 

[El Gouna Property]

I think that there is now a good stock of re-sale properties in Hurghada.

Why take a risk on pre-constuction when there is such an abundance of ready to move into properties which can be used and rented out straight away, therefore realising an immediate yield, for not much more than there original cost price.

Whilst there is still a credit crunch and finance is still hard to come by you can pick up some bargains.

I too have bought 3 properties and sold 2 with the 3rd one up for sale fully furnished for virtually the same price as the developer is selling unfurnished units for.

I agree if you buy in the right spot or at the right price and are not greedy you should sell easily.

You are right Danny and even People in need to sell they sell much cheaper I have a friend she sold her apartment for only 30000 Euro and its located just beside British resort and its 2 beds high quality finishing can't believe it

 

[VICKIG]

You are right Danny and even People in need to sell they sell much cheaper I have a friend she sold her apartment for only 30000 Euro and its located just beside British resort and its 2 beds high quality finishing can't believe it

Totally agree the prices at the moment are good for resales
Also there is the safety element from buying a resale. Obviously resales are going to suit longterm investors more and those looking for a holiday home.
But it is peace of mind and with some really good deals to be had.

 

[El Gouna Property]

Totally agree the prices at the moment are good for resales
Also there is the safety element from buying a resale. Obviously resales are going to suit longterm investors more and those looking for a holiday home.
But it is peace of mind and with some really good deals to be had.

Yes and also with Holiday Homes I guess as for example have a friend selling her apartment in British Resort 2 beds with pool view full furnished for only 48000 GBP

its really amazing flat but she need to sell

 

[Peter Mitry]

Guidelines for Buying and Selling

Contrary to all the bad publicity in Hurghada it is still possible to buy and SELL property here.
We have bought 4 properties in Hurghada and now sold 3 of them very quickly and with no hassle.
It all comes down to buying in the right place and making sure all the correct paperwork is in place.

We never bought off plan...We made sure the bricks and mortar (cement) were built and each property had the correct land registry and paper work.
This means re-selling is then easy.

By the way for anyone who has not registered their property for the new property tax you CAN still do this...it does not matter that the so called deadline has expired.

This is good advice from Derek; always get your lawyer to check the legality of any property you propose buying. If it an unfinished property which requires internal or external finishing be prepared to rent whilst you supervise the work personally or get someone you trust to do it for you. Unfortunately many Egyptian tradesmen do not have the same skills or work ethics as you may be used to; but they are prepared to learn if someone with the necessary skills is supervising.

 

[VICKIG]

Yes definately as long as you check the paperwork most places you will need the poa (power of attorney) aswell as the contract and if possible ensure you carry out signature validity in addition and than you should be ok.
I know many people that have sold resale property with a nice profit margin and not had to worry about building completion dates and finishing expectations. Obviously buying a shell in an already complete build and finishing yourself will give you a more rewarding investment, but you do have to supervise unless you do it yourself or know of a reliable finishing company to carry out the works. I finished my property myself and although it is hard work you do get a sence of satisfaction and achievement providing you have the time.