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danny
New Member
The vast majority of properties built or pre-constructed are not registered and so the availability of mortgages in Egypt will not ignite a purchasing frenzy anytime soon.
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Peter Mitry
<B>Egypt Forum Founder Member</B>
Organics I fully agree with your sentiments and with all of the adverse publicity at present you should totally avoid off plan projects; in any market, and particularly when times are tough, individual owners who are selling a property are more likely to accept offers.
My advice to you would be to look for an existing property in a good location with a full green contract which means it can be immediately registered in your name.
There are some good deals around at present, depending on what you are looking for and where.
Georgina is right; find the right property in the right location and with sound documents, negotiate the price to what you can afford and go for it.
My advice to you would be to look for an existing property in a good location with a full green contract which means it can be immediately registered in your name.
There are some good deals around at present, depending on what you are looking for and where.
Georgina is right; find the right property in the right location and with sound documents, negotiate the price to what you can afford and go for it.
Randall
New Member
Hi Peter
I thought you were promoting off plan at Royal Beach ?
Or maybe i am wrong.
I thought you were promoting off plan at Royal Beach ?
Or maybe i am wrong.
S
simpywimpy
New Member
You beat me to it Randall. I was just about to ask the very same thing myelf
Peter Mitry
<B>Egypt Forum Founder Member</B>
Off Plan or Resale?
In the case of off plan we will always try to secure Due Diligence to give clients confidence.
In this case I felt that Resale property was more appropriate to the circumstances and in this case then of course it is the best solution.
There is no 'one plan fits all' scenario; as agents we are asked to advise, which we try to do as best we can with the experience and knowledge which we have.
If someone is looking for pure investment and is looking for a new project to obtain the lowest price and the greatest potential for capital gain in the future then the advice we give will be different.
The decision to buy one or the other rests with the buyer; our job is to advise depending on the brief we are given.You beat me to it Randall. I was just about to ask the very same thing myelf
In the case of off plan we will always try to secure Due Diligence to give clients confidence.
In this case I felt that Resale property was more appropriate to the circumstances and in this case then of course it is the best solution.
There is no 'one plan fits all' scenario; as agents we are asked to advise, which we try to do as best we can with the experience and knowledge which we have.
If someone is looking for pure investment and is looking for a new project to obtain the lowest price and the greatest potential for capital gain in the future then the advice we give will be different.
P
pyramids estate company
Guest
hi all
first of all i hope you are doing well and all is fine ,,,,,
with my respect to all replies in this thread i have diffirent opinion :-
Hurghada on track to become one of the best cities all over the world like Dubai or maybe more than , for many reasons .
you can find alot of facilities in hurghada not in Dubail like :
1- the friendly atmosphere , the egyptian people are very friendly people with hosptality .
2- the civilization :-
in hurghada you can tuch the history , you will fel that you live in great country ,
3- the Red Sea :-
the coral reefs - Diving locations ( REd Sea is the best location for Diving ) . warm water all over the year .
4- the cheap life :-
in Egypt and in hurghada you can live with very cheap prices .
5- the Properties in hurghada are verry cheap you can buy and own vacation and living property with very chep price .
6- in Dubai , every thing is expensive , living , properties .
and the atmosphere is very hot .
only the reach people who can go to Dubi to take a vacation only the reach but in egypt , you can make wonderful vacation , with low cost .
7- the next years we will see diffirent in real estate market in the middel east
Regards
Peter Mitry
<B>Egypt Forum Founder Member</B>
I would just like to make a couple of comments on Simpy Wimpy's recent post.
For all of those people who have lost money or are having difficulty getting access to their apartments in Hurghada you have my sincerest sympathy and I hope that you will eventually find a satisfactory solution.
However, I would like to correct a couple of misconceptions:
1. There is no bank guarantee system in Egypt; investors wishing to buy here must be very careful to research Developers thoroughly to be sure they have the best chance of concluding a satisfactory purchase.
2. Due Diligence is offered by a number of Developers and INSISTED on by the more reliable agents. However, it is important for agents to have the reports independently verified by a reliable Egyptian lawyer whom you trust. Many UK lawyers carrying out this work have never even been to Egypt, they rely on work carried out by an Egyptian lawyer they have often never met. (LAW is the one exception to this; Philip Morris visits regularly and does most of the work himself.)
3. Even Due Diligence is not a guarantee in itself; things can change, a developer who looks strong when the DD is carried out can be in difficulty very quickly if the market takes a downturn.
4. There is always an element of risk; that's why the potential gains are so much greater. However, there are still people buying over the telephone without even visiting Egypt!
5. Try to ensure that the Developer you are buying from is financially sound and has a good track record of construction in the area in which you are planning to buy, or if not in the immediate area, elsewhere in the country. This indicates at least a degree of local knowledge both of building regulations and the culture.
6. Above all, UK building regulations are more stringent in many other parts of Europe and rightly so as properties have to withstand freezing cold and extremely wet weather. Here in Egypt this is not the case and build quality is rarely the same; it is usually however adequate for the conditions and it is more often than not the finishing quality which makes the difference.
7. There are still many people who bought in Egypt two or three years ago who have seen the value of their investment at least double and most of them are very happy. It is not right therefore to discriminate against Egypt because of the bad experiences of a few less fortunate people.
8. House prices in the UK, in Ireland, Spain and many other parts of Europe are dropping like a stone and many thousands of people are in negative equity. Even in Dubai, property prices have dropped between 30 - 50% in the past year and yet in Egypt the market is still rising; a new property bought now in a good off plan development should double in value within 3 -5 years if present trends continue.
Finally, investing in anything is always a risk. You can put your money in Government Bonds and be reasonably sure you will get a return, no matter how low. Anything that promises bigger returns is usually associated with higher risk; you minimise this risk by research. Use the internet; you can 'Google' most people these days and certainly you can research companies.
Egypt is not a bad investment there are just bad investments, as there are everywhere. Our job is to try and sort the wheat from the chaff and advise our clients accordingly. If we do our job well then 90% or more of the time you will invest wisely and your risk will be minimised.. but we are not infallible, every investor must do his utmost to protect his position; a good agent and a good lawyer are only a part of the equation. As investors we have to shoulder some of the responsibility if we get things wrong.....
For all of those people who have lost money or are having difficulty getting access to their apartments in Hurghada you have my sincerest sympathy and I hope that you will eventually find a satisfactory solution.
However, I would like to correct a couple of misconceptions:
1. There is no bank guarantee system in Egypt; investors wishing to buy here must be very careful to research Developers thoroughly to be sure they have the best chance of concluding a satisfactory purchase.
2. Due Diligence is offered by a number of Developers and INSISTED on by the more reliable agents. However, it is important for agents to have the reports independently verified by a reliable Egyptian lawyer whom you trust. Many UK lawyers carrying out this work have never even been to Egypt, they rely on work carried out by an Egyptian lawyer they have often never met. (LAW is the one exception to this; Philip Morris visits regularly and does most of the work himself.)
3. Even Due Diligence is not a guarantee in itself; things can change, a developer who looks strong when the DD is carried out can be in difficulty very quickly if the market takes a downturn.
4. There is always an element of risk; that's why the potential gains are so much greater. However, there are still people buying over the telephone without even visiting Egypt!
5. Try to ensure that the Developer you are buying from is financially sound and has a good track record of construction in the area in which you are planning to buy, or if not in the immediate area, elsewhere in the country. This indicates at least a degree of local knowledge both of building regulations and the culture.
6. Above all, UK building regulations are more stringent in many other parts of Europe and rightly so as properties have to withstand freezing cold and extremely wet weather. Here in Egypt this is not the case and build quality is rarely the same; it is usually however adequate for the conditions and it is more often than not the finishing quality which makes the difference.
7. There are still many people who bought in Egypt two or three years ago who have seen the value of their investment at least double and most of them are very happy. It is not right therefore to discriminate against Egypt because of the bad experiences of a few less fortunate people.
8. House prices in the UK, in Ireland, Spain and many other parts of Europe are dropping like a stone and many thousands of people are in negative equity. Even in Dubai, property prices have dropped between 30 - 50% in the past year and yet in Egypt the market is still rising; a new property bought now in a good off plan development should double in value within 3 -5 years if present trends continue.
Finally, investing in anything is always a risk. You can put your money in Government Bonds and be reasonably sure you will get a return, no matter how low. Anything that promises bigger returns is usually associated with higher risk; you minimise this risk by research. Use the internet; you can 'Google' most people these days and certainly you can research companies.
Egypt is not a bad investment there are just bad investments, as there are everywhere. Our job is to try and sort the wheat from the chaff and advise our clients accordingly. If we do our job well then 90% or more of the time you will invest wisely and your risk will be minimised.. but we are not infallible, every investor must do his utmost to protect his position; a good agent and a good lawyer are only a part of the equation. As investors we have to shoulder some of the responsibility if we get things wrong.....
O
Organics1
New Member
Hi All,
Well I was hoping when I started this thread that I'd get some interesting responces that would make me re-consider my position.
However nothing that I have read so far had persuaded me to think any differently.
When I asked "will Egypt be the next Dubai" I guess I should have written "Will Egypt FALL like Dubai" as it can never be like Dubai as it has "the biggest and best from the west".
The underlying tone of the messages I seem to be getting is that developers need to finish COMPLETELY what they've started and sell 50% + before going on to build anymore. There seems to be a huge amount of problems with service charges, change of owners, etc,etc with no over riding governing body to control things.
A lot of people seem to think that Egyptian prices haven't dropped but I will add YET!!!
Property prices didn't start to drop in Dubai until the vast majority were reaching the completion and final payments stag. All of a sudden investors in one swoop tried to off load there properties before completing and when they failed to do so dropped their prices which start a ripple affect throughout the market.
Wait another 12-18 months and see what happens in Egypt when people can't afford their final stage payments or if they can they can't rent or re-sell their property, you will see the exactly same thing happening. EGYPT IS NOT IMMUNE TO WHAT'S GOING ON!!!!
To prove my point Sunset Pearl is nearing completion and final payments are being requested. I have just been offered 3 properties at 25% below the list price as the owners can't complete. This is just the begining of things to come.
I for one don't fancy taking the risk with 40k plus of my hard earned money, chasing a developer for another 5 years to finish what they've started.
Some people think that you will have to pay more for a finished property but I strongly disagree with this
As always though only time will tell.
Well I was hoping when I started this thread that I'd get some interesting responces that would make me re-consider my position.
However nothing that I have read so far had persuaded me to think any differently.
When I asked "will Egypt be the next Dubai" I guess I should have written "Will Egypt FALL like Dubai" as it can never be like Dubai as it has "the biggest and best from the west".
The underlying tone of the messages I seem to be getting is that developers need to finish COMPLETELY what they've started and sell 50% + before going on to build anymore. There seems to be a huge amount of problems with service charges, change of owners, etc,etc with no over riding governing body to control things.
A lot of people seem to think that Egyptian prices haven't dropped but I will add YET!!!
Property prices didn't start to drop in Dubai until the vast majority were reaching the completion and final payments stag. All of a sudden investors in one swoop tried to off load there properties before completing and when they failed to do so dropped their prices which start a ripple affect throughout the market.
Wait another 12-18 months and see what happens in Egypt when people can't afford their final stage payments or if they can they can't rent or re-sell their property, you will see the exactly same thing happening. EGYPT IS NOT IMMUNE TO WHAT'S GOING ON!!!!
To prove my point Sunset Pearl is nearing completion and final payments are being requested. I have just been offered 3 properties at 25% below the list price as the owners can't complete. This is just the begining of things to come.
I for one don't fancy taking the risk with 40k plus of my hard earned money, chasing a developer for another 5 years to finish what they've started.
Some people think that you will have to pay more for a finished property but I strongly disagree with this
As always though only time will tell.
queenie40something
Senior Member
Hi - put me 2p worth in.
Personally - dont bring me down - I dont think you can compare Hurgharda to Dubai. Dubai has Ultra deluxe complexes, shopping malls with the real Mc Coy and not fakes, high class finishes, classy restaurants, atmoshere in Dubai hot - is Egypt not hot?? compared to Europe!! Do Dubai shopping malls have to have shop keepers outside begging tourists to come in to sign the book and meet my friend?? Cmon!! Just keep plugging Hurghada ?? Ummm
Personally - dont bring me down - I dont think you can compare Hurgharda to Dubai. Dubai has Ultra deluxe complexes, shopping malls with the real Mc Coy and not fakes, high class finishes, classy restaurants, atmoshere in Dubai hot - is Egypt not hot?? compared to Europe!! Do Dubai shopping malls have to have shop keepers outside begging tourists to come in to sign the book and meet my friend?? Cmon!! Just keep plugging Hurghada ?? Ummm
O
Organics1
New Member
Hi
100% agree.
Dubai is a completely different kettle of fish, however there are similarities in terms of the mind set of the "flipping" investor!
W
wellheld
New Member
My partner came to Hurghada in March for the first time. He thinks it looks very like Dubai did in the 70's, when he was involved in construction there. They had the same unfinished roads and buildings, lots of single story small shops, no tatty tourist shops but it wasn't of course a tourist resort then.
The big difference though is that Dubai paid for the best builders, architects etc from around the world to come out and build. Dubai had a vision and was prepared to pay for it. Hurghada is building the infrastructure for a beautiful future here, wide boulevards, excellent bypass roads with beautiful planting of trees and shrubs along them, but lets itself down on the slapdash finish and the lack of maintenance.
And that's my twopenneth.
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P
pyramids estate company
Guest
Wait another 12-18 months and see what happens in Egypt when people can't afford their final stage payments or if they can they can't rent or re-sell their property, you will see the exactly same thing happening. EGYPT IS NOT IMMUNE TO WHAT'S GOING ON!!!!
i don't think so because the prices in Egypt for matirals , and every thing is very cheap more than Dubai or any country all over the world ,
also this time i think is best for investment , because the prices of every thing during this economic situation go down , and it's unlogic still like this so the situation now is an golden opportunity for those who want to make good investment .
the people who invest in this time is like hunter , so for me i advice to hunt this opportunity .
Regards :
i don't think so because the prices in Egypt for matirals , and every thing is very cheap more than Dubai or any country all over the world ,
also this time i think is best for investment , because the prices of every thing during this economic situation go down , and it's unlogic still like this so the situation now is an golden opportunity for those who want to make good investment .
the people who invest in this time is like hunter , so for me i advice to hunt this opportunity .
Regards :
P
pyramids estate company
Guest
i agreed with you that Hurghada will own nice feature , also hurghada at this moment need alot of work from the Government .
but in few years will be on of the best cities all over the world
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