Property rental issues

[amipraj]

Rental Market

Hi,

I am looking at investing in Egypt.

- Firstly can anyone recommend areas of purchase

- Anyone recommend solicitors as i can imagine all the regulations being in Arabic

- What is the rental market like there. In a year, how many weeks rent can you receive?

Thanks alot,

Amish

 

[alison9071]

egypt has a good potentail for rental due to then 365 days of sunshine with a 5 hour flight from the uk when choosing a destination for rentals is is important to think about several things 1 regular flights from major european countries , short flying time a good established rental market in place egypt has all of these but when choosing a place within egypt i think that you need to have some where that is central to take full advantage of all that egypt has tp offer that is why for me hurghada is the best not only is hurghada 20klm from sahl hasheesh with its golf courses itis only 10 klm from elgouna with its 2 golf courses the diving in hurghada and it surrounding areas such as sommer bay and safaha are world famous couple all of this with the fact that cairo is 30 mins from hurghada by plane at only £20 flying daily return luxor is a 3 hr drive or you can also fly there and sharm is a 90 min boat trip away so when renting a property here you have lot to offer any potentail tennants
solicitors i always think that it is wise when finding a lawer outside the uk to use the british embassey they will have infomation on lawers that they have checked out also the law society in the uk may be able to help you but always use a lawer that you are comftable with some lawers her are sharks so you must be careful
rental value
we have 2 resorts 1 beach 1 in the main touristic centre you can expect to get for beach front 350 euros per week for an 1 bed apartment that would cost you 50k or for 30k in the town a 2 bed can get you 300 euros a week both resorts have on site rental offices for rentals housekeeping etc.. and are both 5 star resorts
if you need any more help help please ask
thank you alison

 

[Peter Mitry]

Hi Amipraj did you find a suitable investment in Egypt? Sahl Hasheesh can provide 15% ROI net income based on 70% occupancy. Also, if you need a good lawyer Hamdy El-Sawy is the only Egyptian lawyer based in London who is a member of the British Law Society. If I can help PM me.

Sahl Hasheesh - luxurious Villas and Apartments in Eygpt

 

[wolfgang]

Peter,
Interesting projection.
Exactly how has this figure been derived?

 

[Peter Mitry]

Based on a one bedroom front line beach apartment in Palm Beach Piazza renting at 50 GBP per night. This is assuming that the complex will be managed by an International hotel group with 24 hour reception & concierge service and achieving 70% occupancy ( Hotels in Hurghada are achieving in excess of 90%). It also assumes a 40% management fee from the management company. Therefore 365 x 50 = 18250 x 70% = 12775 - 40% = 7765. 7765 as a % of 50000 = 15.33% ROI. It is likely that Palm Beach Piazza, El Andalus and Ocean Breeze will all be managed by such a company. The chosen operator will have established links with travel agents, tour operators,golf clubs etc. These figures are based on the resort being fully open - the first year is unlikely to be at this level but year 2 and onward should certainly achieve this projection.

 

[RedSeaRealEstate]

Dear Amipraj,
Market in the Red Sea is perfect for return on investment, its perfect sunny weather all the year, you can enjoy there the sun, sea, weather everthing u miss around the world, i advice you to buy a vill in a nice area, I know someone who have a villa in hurghada d\for sale, with sea view, Private Gardes, Private Swimming pool, Private Garage, on top of Mountain, beside Hilton Plaza, Rent of this villa could be Amazing I;m sure the return of investment on such thing will be perfect, also I recommend you el gouna, I have a friend there can sell you a villa or apartment ther in addition i know a property management company whom can take care of your villa and rent it for you and you just take a very nice profit so its real reat invesment
wish my advice was fine for you

 

[kerryman]

Rental Potential in Ain Soukhna???

I have purchased a three bedroom apartment in a 5* resort adjacent to the Palmera Resort in Ain Soukhna on the Red Sea. The development is due for completion in Dec 2008.
Can anyone provide me with information on rental potential (either long or short term) or general comments on my investment?

Thanks all!

 

[Peter Mitry]

Hi Kerryman
I would appreciate any contact details you have for the Developers in this resort.

Many thanks
Peter
Mitry

 

[dave99]

Interesting that you are only now considering this aspect of your investment.
What research did you do before you bought, or were well and truly SOLD, and now you're a bit worried.

 

[dave99]

The rental potential anywhere on the red sea is not only controlled by the weather.
Supply and demand is the only real factor to consider.
I'm selling apartments off-plan in the Arabia District of Hurghada with "rental potential", but that's all it is, potential. There are a lot of apartments being built and without cheap flights there will be an over supply. If you buy into the guarenteed rental schemes then ask yourself how can it be guarenteed, and also ask what is the price WITHOUT the guarentee.

 

[kerryman]

Hi Peter,
I purchased the apartment from Sudbury Smith Holding Ltd who bought 75 units from the developer (Aquarious Company for Touristic Investments SAE). I don't have contact details for the latter but I did meet the developer on site. To be fair I act as an agent for Sudbury Smith Holding Ltd. If you need any information please ask and I will try to either answer it myself or forward it on to them.

I am just looking for opinions on Ain Soukna and rental potential so as to balance it with information already received.

 

[kerryman]

Interesting that you are only now considering this aspect of your investment.
What research did you do before you bought, or were well and truly SOLD, and now you're a bit worried.

Hello dave99,

Never really needed to think of rental as I purchased the apartment purely for capital appreciation. I bought the apartment at a very good price and intend to sell the it before completion in Dec 2008.
It is a very nice apartment and if I were to hold on to it I would like to know realisticly how much rental I can expect to get.
Not "worried" tho. I already have someone lined up to buy the apartment at €12K more than what I bought it for three weeks ago.

 

[dave99]

Sounds like you got an "insider" deal then if you can get such a good re-sale price. Go for it.

Have you got a copy of the land registration deed, or have you been promised one, or have you just assumed it is all in place without checking. In my development (Red Sea Residencia) I have already given a copy of my land deed to my new owners, during our pre-sale chats.

If you do not have the copy of the land deed yet I suggest you get one pronto, without it you cannot sell.

For the benefit of all, how can you sell something that does not exist yet if it is all still being built since you have NO TITLE.

My opinion, but I cannot see that there will be much rental potential in the area since it is too far out from Hurghada, and there will be lots of competition in better locations.

Red Sea Developments (UK & Egypt) - 2 Bed Apartments from £14950

 

[seamstress]

i agree with dave, rentals are only potential it all depends on the buyer advertising his own property both at home and abroad. can be very lucrative if advertised right.

 

[seamstress]

dear amipraj
if you need any help in and around hurghada just ask, i run a small management agency here and know most things

 

[kerryman]

Hey dave,

I did get a very good deal. It was one of the first apartments in the development to be sold.
The apartments have not been registered yet but if I were to sell it now I could simply change the names on the contract. As it is such a nice apartment I'm thinking of holding on to it and there should be pleanty of more capital appreciation.
You are absolutly correct though and if I do hold on to it I will need these deeds.
I have been in touch with the solicitor and hope to get this sorted ASAP.
Thanks for the good advice!

Also, I tend to think that the location isn't that bad. Ain Soukhna is an hour and a half drive from Cairo, the airport, the Pyramids at Gizza & Sakkara, The Sphinx and the Cairo Museam. The best highway in the country links Cairo to Ain Soukhna and it is Cairos closest beach. With Cairos population of about 20 million and Egypts prominence in the tourist market set to double to 16 million visitors by 2014, I think the potential might not be that bad. I value your oppinion though.

Thank again,

Kerryman


PS: If you like I can also get you a very good deal on one of these apartments.
-3 bedrooms with one en-suite, 1345 sq.ft with balcony and private beach in a 5* resort complex - only €59,950

 

[dave99]

Location and value

Hi again
Maybe me thinks the location is not that bad for tourists after all.
I suppose when we Brits travel to Majorca, we often have to travel 90 mins or so, but then that is after a 2 hour flight not 4 to 5 hours.
I know that Hurghada does not really "cut it" from the culture view point since its too far and Luxor & Cairo I think. I've done the 2 day stay over trip to Luxor which was great, but expensive for two.

I've also done the Hurghada to Cairo coach (about 5 hours) which was just about bearable, and very cheap (about £7).

It's just a bit too far to go for me on my next trip but maybe another time.

 

[hair1982]

Rental prospects for owners???

Having just booked a week 3* All inclusive accommodation in Hurghada at the Triton Beach in November, it has only cost £87 per person,

Taking this into consideration what do you think owners are going to realistically get P/W for their self-catering units? With so many units becoming available in the next 12 Months is the market going to become flooded.

I have brought a 1 bed apartment earlier in the year in the tourist area, as owners what are your expectations for realistic rental returns?

Regards
Chris

 

[kiwishep]

Off season is always cheaper than summer season.

 

[dave99]

rental return

I o not promote rentas on my development because I do ot think that there is a great potentil yet.

If you can get 100 gbp a week for say 4 people then yo will do well there wil be an over supply - brits with ant sense do not go to egypt in te summer - winter tme is best - you should consider h triton hotel as a bad example it is poor by egyptian standard and a good apartment will be btter I think.