Has the credit crunch affected egypt, have prices started to drop, developments slowed down etc ?
I've called it "Egyptianism." Developers state they are selling but fail to open registrations to people like you. Prices rise even though demand has dropped and new off-plan projects are shelved. Even in Dubai, but no country wants to admit it or cause panic.Well, can any agent interested in selling admit a drop in demand? Unlikely. Egypt is not another kingdom. Its economy very heavily depends on tourisms among other factors. I doubt that tourism figures remain at the same level simply because thousands have lost jobs all over europe, russia and other east european countries. Egypt is not immune to the economic downturn and today being in denial of this is simply strange. Can any of the agents say how many properties have been sold by them in the last month?
It's slow for me, because I focus more on high end properties, aimed at the UK market. The investor buyer using UK house equity to profit out of buying abroad has definitely dropped off..but there is no shortage of baby boomers out there.Well, can any agent interested in selling admit a drop in demand? Unlikely. Egypt is not another kindom. Its economy very heavily depends on tourisms among other factors. I doubt that tourism figures remain at the same level simply because thousands have lost jobs all over europe, russia and other east european counties. Egypt is not immune to the economic downturn and today being in denial of this is simply strange. Can any of the agents say how many properties have been sold by them in the last month?
True... My flight was to Manchester and arriving so late in the night, travel options out of the airport were difficult.Those prices are brilliant but unfortunately there aren't many options from the North.
Oh how I pray for a Hurghada flight from Newcastle . Flights to Sharm have proved very popular . Thomsons tried Luxor for a summer 2 years ago but there wasnt the demand and they were pulled . I wish they would at least give Hurghada a try.True... My flight was to Manchester and arriving so late in the night, travel options out of the airport were difficult.
We had some inaugural flights out of Doncaster- Robin Hood Airport last year. Smooth operations but Thomson need more persuasion to add more this year. East Midlands and Bristol are other options with occasional flight from Newcastle, but I think more expensive.
As I see it, travel agents will want to make money or close. Tour operators will want to keep working or close, so they have to get their act together and fly to those places that can handle mass tourism. The all year round Red Sea locations are perfect and the hotels are ready for us. So will the resorts be.
LISTEN UP TOUR OPERATORS and Travel Companies..... STOP BEING GREEDY.
If demand is created by reducing your prices, we all win. If flights are reasonable and from more locations, Residential Tourism will thrive..... and it keeps people and the economy working. (Who wants to save in a bank these days?)
Should I shout it at Gordon Brown from the Robin Hood Airport roof-top?
Simply, OPEC oil prices should have more regulation and less City speculation.
Aviation Fuel prices can be bought in advance and pegged to allow for forecasted travellers. Actually to do this, it's about doing one's job thoroughly and professionally. (Now this grumpy old git from Sheffield will get it in the neck from my friends at Thomson. lol)
Alan Cockayne (Coralife-Style consultants)
We live in the South but commute to London the day before and stay in a Hotel close to the Airport. Costs the same as the parking with Hotel thrown in. I have the name of the company I use if anybody wants it.Those prices are brilliant but unfortunately there aren't many options from the North.
This was all foreseable late in 2007 early 2008 when mortgage companies offered senseless 100-120% loan to value without question. Coupled with OPEC greed in oil prices and City marketeers on the band-waggon we knew it wouldn't last.I think the investors that originally planned to borrow from the equity in their homes here in the UK are more likely to struggle by finding that they have neither the equity they thought, or have difficulty getting a mortgage advance now.
That, coupled with the fear of unemployment, will have put many people off from making the leap just at the moment and building companies will delay projects now for this reason.
I also think we may even see part completed apartments being sold at a loss by investors who have had a change of circumstances since placing their early instalments and now need to offload in a hurry.
On top of all this we have the added worry of developers not being open and honest in their dealings making off plan far too big a risk these days in certain countries.Look at what is happening recently in Dubai and Hurghada where people stand to lose most if not all of their investment while lawyers scramble to find who had their money last.
Then of course we have rising oil prices and therefore flight costs and with people having less disposible income anyway, they are tending to stay at home for their holidays.
well said Alan.
Escrow accounts show an honesty on the part of the developer/builder so surely in their interests to do so if they intend to produce what you are paying for.
Considering the number of large companies going under these days, I think it would be crazy to consider buying off plan with anyone now who refuses to use this method of securing money
very few developers here have escrow accounts set up, so insisiting on something that is not offered may not be possible. lately I have been getting clients who have not had there property delivered on time, and they have wished to pull out of the contract. They have been able to do this as the contract stated this was an option. So escrow is not the only option, nor is it a cure all. It is possible to contractually protect your interests as well.[/I][/I]
Thank you for the compliment....
For the benifit of readers who are thinking of buying in Egypt and asked for deposits (usually around 30% of the property asking price) they must INSIST their money goes through an Escrow Account.
It is a client Holding Account or Stakeholder Account which can be set up by a reputable finance house or legally qualified personnel, i.e. your lawyer, your Estate Agent (who should be working primarily for you and not just the developer) a notary or your own bank, to safeguard the passage of payments to developers.
These payments are made on request to the bank. Basically you release them from funds you have deposited in it if you are satisfied the money is being used for the purpose intended. An agreement is drawn up specifying the conditions that need to be met prior to money being released.
In other words, "the person operating the escrow account needs to define precisely what authorisation (whether written or oral) needs to be provided and in what form. On the provision of such information or confirmation, money is released to the party who will benefit from the account."
The Account should be free of costs as it gains no interest, that's why Egyptian banks hate to open them. However, there is a cost for servicing the payments so choose an unbiased operator preferably not connected to the developer. If your own local solicitor is dealing with the contract of sale, it may be wise to add this service.
If you are thinking to hire an Egyptian lawyer, again choose a solicitor not "in bed" with the developer or the Egyptian flawed system. Do some research by checking out recommendations and their fees.
I hope this helps and safeguards your money.
Alan Cockayne. Coralife-Style Consultants.
I agree Ross, contracts can be made to fit client needs. - The very principle of marketing.very few developers here have escrow accounts set up, so insisiting on something that is not offered may not be possible. lately I have been getting clients who have not had there property delivered on time, and they have wished to pull out of the contract. They have been able to do this as the contract stated this was an option. So escrow is not the only option, nor is it a cure all. It is possible to contractually protect your interests as well.
Having said that I am of course a fan of correctly managed escrow accounts.