This question has received as much varied answers as there are as much varied choices of property developments found all over Egypt. As a whole, members chose to buy their properties in the resort areas of the country, near the area of the Red Sea where in the properties afford spectacular oceanviews and quick access to the sea. The most common locations chosen by members included Hurghada, El Gouna, and Sharm El Sheikh. Their particular property development choices included Sahl Hasheesh, Hania Beach, regency beach, Desert Pearl, Lotus, Hurghada Dreams, Suleder, regency towers, Oasis Resort, Palm Beach Piazza, and El Andalous.
Yet as much as members gave varied choices in their purchases, there seemed to be a major consensus amongst members on their reasons for purchasing a property in Egypt. These locations were chosen based on capital investment, followed by the potential for rental returns, personal use, either as a holiday or retirement home, and most certainly, the allotted budget for the purchase. Preferences, such as the overall feel of the location, available amenities, and proximity to other premiere locations were generally secondary in the process of selecting a property.
There is a wide range of investment strategy available to a property investor. The choice of which strategy to employ is most certainly based on the investor’s objective of the investment, the level of complexities, and the investor’s attitude towards and willingness to take risks. Two most common investment strategies are discussed below:
A. Short-Term Investment Strategy (Flip Strategy)
This strategy involves the purchase of an off plan property and selling it prior to the completion of the project. In actuality, buying off plan is not strictly a property purchase as the property has not been completed. Instead, it is a purchase and sale of an option to sell the property. A critical factor to the success of this strategy is the key time in identifying the investment opportunity of a targeted off plan development.
Some benefits of employing this strategy include the opportunity to purchase at a much lower rate before prices begin to appreciate. Many property investors opt to employ this strategy because of its simplicity, and because it affords low initial investments. The highest risk element when employing this strategy is the sale of the property prior to completion or else the investor would be forced to complete the purchase with all the obligatory legal and financial consequences.
B. Medium-Term Strategy
This strategy also involves the purchase of an off plan property or a resale unit, wherein the purchase is completed and holding on to it for a certain period, and ultimately reselling. During this period, the property could be rented out, either on a holiday or long-term rental basis so as to generate income. Employing this strategy requires the objective of the investment to be clear, where it could be for income generation or capital appreciation. It is advisable to focus on one objective so as to maximize the return.
The Key opportunity when using this strategy is maximizing the possible capital appreciation by holding on to the property until the right market conditions presents itself. Conversely, an investor should carefully determine which property would fit for a particular objective, either for rental income or capital appreciation. So does Egypt fit with your investment goals?