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getting out of Egypt / resale

Discussion in 'Egypt property' started by ganujo, Jun 12, 2007.

  1. ganujo

    ganujo New Member

    HI All,

    I am considering buying a beach front apartment near Hurghada at the Manta Resort.

    I see a lot of people here offer apartments but what I haven't heard much of is about future sales. If I buy an apartment and I want to sell it in a couple of years, is it an easy task? What procedure should we follow?

    Everybody here talks about prices going up but I would like to hear someone saying: I bought, I sold and I made X% in the way!

    What do you think abou this?

    Thanks
     
  2. Peter Mitry

    Peter Mitry <B>Egypt Forum Founder Member</B>

    Consider buying in Sahl Hasheesh near Hurghada; there are one & two bed apartments all front line beach and always in demand. The Developer will help you sell when you are ready. In the meantime they are great for buy to let investment - low cost units, high returns producing 15% return on investment.
     
    Last edited by a moderator: Apr 3, 2008
  3. alison9071

    alison9071 New Member

     
  4. dave99

    dave99 New Member

    I would agree with alison9071 - this may not be the the best place in the world to buy with a view to making a quick sale, and do not be fooled by stories from Sahl Hashesh about the deveoper "helping" - I suspect that this is wishful thnking - I tried this with Resort Alliance and it was not possible.
     
    Last edited by a moderator: Apr 3, 2008
  5. mark 123

    mark 123 New Member

    contract problems

    I looked closely at the contract for apartments in Sahl via an agent and was appalled at the one sided contract and its ambiguity for buyers - that (and the price of properties in Sahl versus El Kawser) put me off. I recognise the difference in venues accounts for part of the price diferences but the contract was really not what I was looking for. RA contract is bad but they are not the only one; I saw others too that put me off making a purchase.

    I ended up buying at Regency Towers and working with Phil Morris of LAW Limited and Property Hotspots to create a far richer and mutually transparent / beneficial contract and maintenance agreement. That now forms the backbone of PHW contract and it is written in plain english (with Arabic of course) and is fair for both parties.
     
  6. dave99

    dave99 New Member

    One sided contract

    :cool: - Thanks for your support on this particular contract with Resort Alliance.

    I fully understand the basic principle that developers need a "one contract suits all", but they can only let this stand after removing ALL of the one sided stuff, much it the way you have described with your contract.

    Now having turned to being a developer I'm going through the same process with my new owners, in that my first contract has been amended to add some clauses requested by the 2nd and 3rd owners.

    I'm lucky in that only having potentially 20 or so owners I can even have a number of bespoke contracts if it becomes important to specific owners.

    I think the big difference is the attitude of the developer and their agents who only seem interested in the financial side of selling a "home".
     
  7. alison9071

    alison9071 New Member

    the apartment market is relatively new it is a speculators market and there is little to history at the moment for resales, however the area is going up in price for the new apartments and there is a demand in hurghada itself for resales to the russian market who do not like to buy off plan.

    I would think carefully about Manta as I have not seen any action on the site for over 18 months they haven't laid a brick yet and the site looks very dense and crowded on the plans.

    There is plenty of resorts here to choose from take your time and look at all the options
     
  8. Lsab

    Lsab New Member

    It's sometime now since this question was first asked. Does anyone else have an opinion especially since so many more of us have bought in the area.
     
    Last edited: Apr 3, 2008
  9. Would it bnough to tell you that since December 2007 till now prices went up around 20 to 30% and will go up soon another 15% so is this enough to give you idea how much profit you would have when like to flip your property after 2 years?
    Note: my advice by a beach front in another project as this project since 2 years nothing happened and still desert land and nothing happened there
    Regards
     
  10. Peter Mitry

    Peter Mitry <B>Egypt Forum Founder Member</B>

    Hello from sunny Sharm! Its a good question and one which many people will be asking. I suspect that the answer will be the same as in any developing market.

    Prices on new developments are increasing at around 10% per quarter; the market is in its infancy and for sure there are probably four or five good years of growth before it will inevitably tail off. By this time some prices will have trebled and a number of factors will influence how easy it will be to sell on. Whatever happens, market forces will prevail; there will always be a market for front line beach and this is a diminishing commodity so prices will continue to rise.

    Many of the current projects, whilst not front line, are very close to it and in the future new projects will be further and further from the beach as the best land is developed and land prices increase.

    There will reach a point where Developers will push prices too high too quickly and there is a stong possibility that this could put a brake on progress.

    However, the big issues which will then drive the market upwards still further are more & cheaper flights and the availability of affordable mortgages.

    So the bottom line; for the next four to five years there is significant growth potential providing you buy at the lowest prices available and try to get as close to the beach as you can afford.
     
  11. BULLS2008

    BULLS2008 New Member

    resale

    Has anyone resold ?????

    If so, had you paid in full for your apartment and were you then paid in full for the sale?

    was it registered through the courts?

    any problems?

    what were the selling costs?

    same questions (apart from reg) applies to stage payment resales

    For various reasons I believe this will be a popular thread.
     
  12. sara Medwell

    sara Medwell Guest

    I am recomminding what you said but

    Hi
    First , you may be right , but I belive you are not the only seller or buyer at Hurghada. there more than 100 Companies as real Estate , huge investement!!!!!!!!!!!!
    on the other hand and To be honest , I have purchased 109 m2 Apartment in Oasis resort , It costs me Only 27,500 Sterling pound . I can Spend my holiday and rent the rest. As I have Already Many people Intressted In buying me Apartment.

    look forward 2 hearning from you

    Sara Medwell
     
  13. queenie40something

    queenie40something Senior Member

    Hi I think it is much too early to be thinking of selling. Alot of members on here are still waiting for theirs to be built - some well into 2010!!
     
  14. BULLS2008

    BULLS2008 New Member

    the question was posed 'has anyone resold?'

    not when is the best time to sell.:rolleyes:
     
  15. queenie40something

    queenie40something Senior Member

    ..and I was merely pointing out that most members on here are in the process of having their apartments built.
     
  16. BULLS2008

    BULLS2008 New Member

    does not mean that they cannot be resold
     
  17. scooby21

    scooby21 New Member

    I would much prefer to buy a resale in one of these developments rather than buying off plan even though its going to cost me more to buy a finished apartment but at least I would know exactly what I was getting rather than worrying about the m2 being correct or not and having to pay extra for meters and boilers as I have read in other posts - so I my opinion there would be a resale market but I think this would only be to other europeans as I doubt there would be interest from locals especially when you consider the annual charges which may shoot up in cost as the years past by, and of course you have the issue of the cheaper apartments that are already in the local market, so I think there is a resale market but who is going to buy will be limited
     
  18. Lsab

    Lsab New Member

    As you say, doubt many locals will buy but lots of Gulf nationals buy in Egypt as do Russians and Scandinavians (technically Europeans of course :))
     
  19. Jeremy Sturgess

    Jeremy Sturgess New Member

    This is an interesting topic. I imagine there are very few resales happening at present except in the already establshed resort towns. Perhaps there is some flipping of contacts going on before completion but I expect much less than you think.

    I believe there were approx 100 resales in El Gouna last year (about 5% of the housing stock and not dissimilar to what you would expect in a mature western housing market )and people have made good profits. This is why I believe resorts like El Gouna have a huge advantage for serious investors and lifestyle buyers as there is already a large resale market, many units are offerred for sale on the internet, prices are transparent, and the buyers are from a wide mix of nationalities. I believe about 50% of units in El Gouna are owned by Egyptians and for me this is a vital factor. A strong interest from the local wealthy buyers is a very good sign as they know local values better than us foreigners and will be around long after we are all gone. A lot of Egyptians aspire to buy in a place like EL Gouna - it is a status symbol as well as being a good investment

    Buying in established locations like El Gouna where there is an established up market tourist market that is growing is more expensive initially but the rewards are larger in monetary terms and more certain. I would prefer to buy one 100k quality appartment in El Gouna that I know will rent well (See Queenie40's link somewhere on this forum for latest tourist stats for El Gouna which achieved over 1.5 million bed nights sold in 2007) and which has a good chance of doubling in value over 5 years than five 20k apparts in a poorer location in a not yet established resort. Cheap is usually cheap for a good reason and usually remains cheap. I think some buyers on this forum are interested in Egyptian property because it is within their price range but a lot of the product is of poor quality and will not be a good long term or short term investment.

    My own White villa in El Gouna which I bought in 2005 is on paper worth considerably more than I paid but I want to keep and use it and I believe has the potential to be worth $1.5 million ($5,000 psm) within a few more years if El Gouna continues to develop as it is. When I buy an overseas property something I try to do is to picture who is going to buy it from me in a few years time and what could it conceivably be worth to that person all things considered- this allows me to filter out 99% of what I see because I cant picture the resale. If you cant really work out who is going to realistically buy your new appartment in a few years time when its built then dont buy it would be my advice.

    So in Gouna for example I know that there is a finite supply of lagoon frontage property as the seawater lagoons can only be brought so far inland. The New golf project at El Gouna, Ancient Sands Golf Resort, which I am involved in will be the last large scale project at Gouna where seawater lagoons will be possible.

    On the other hand I see a rapidly growing population and middle class and many of these people will want to buy lagoon frontage property at El Gouna specifically when they make enough money. Thats quite apart from the increasing number of foreigners interested in buying in Egypt, which may be a permanent (I Hope) or temporary influence.

    So finite supply of a quality product and increasing numbers of potential purchasers both local (the most important) and foreigners equals inevitable price increases over the 5-10 year time horizon that I have.
     
  20. Peter Mitry

    Peter Mitry <B>Egypt Forum Founder Member</B>

    OK I bought in Palm Beach Piazza 18 months ago 30000 GBP and sold in November for 58000 GBP. The unit was not registered. It was easy; why? Front line beach apartment in Sahl Hasheesh.

    More significantly I am now trying to get a long term let in Hurghada in a front line beach project with a pool and they are like gold dust 600 - 700 GBP per month which in some cases is a 15 - 20% ROI and thats if you can find anything!
     
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