Investing in Egypt? - How well have you done?

[NickWallwork]

Hi All,

I'm interested to hear some positive stories about how well you've done with your investment in Egypt?

What did you buy your apartment for and when?
And what's it worth now?

I want to try and put some real tangible capital growth figures together. It's a great investment location and we all know prices are shooting up but I'm keen to hear some individual examples and hopefully put some stats together.

Please fill in the Poll above with your answers as well as posting your experience...

Many thanks
Nick

 

[queenie40something]

Hi we bought off plan on 2007 and now the same off plan apartment on the same development is nearly £30,000 more unfurnished. So think we done quite well. But selling it is a different issue.

 

[danny]

Hi we bought off plan on 2007 and now the same off plan apartment on the same development is nearly £30,000 more unfurnished. So think we done quite well. But selling it is a different issue.

The real profit can only be measured on the successful resale of your property as Queenie points out.

Developers may well be asking for £30k more, but are they getting any sales?

Another measure is to look at your percentage gain against outlay.

Purchase for £20k and realise a £20k profit is obviously better than £50k against £20k profit and less capital risk.

Personally I purchased offplan in 2006 for £20k, spent £8k on finishing and furnishing, and sold in Jan 2009 for £52k. After marketing costs and commissions I returned 58% profit which helped towards my next purchase in a finished project.

Having said that I do not expect to realise the same margin on my current purchase as the risk to me was lower and I have sat on the property for a shorter period of time, however I still aim to make @ 15%

 

[danny]

.........................................Personally I purchased offplan in 2006 for £20k, spent £8k on finishing and furnishing, and sold in Jan 2009 for £52k. After marketing costs and commissions I returned 58% profit which helped towards my next purchase in a finished project.................

Forgot to mention that my resale agents were Nick and Peter from Egypt-Real who are premier members of this forum and they did a fantastic job considering their main focus is on pre construction properties .

We determined a price between us that I was happy with and factored commissions and marketing costs seperately.

The sale was agreed within 48hours at the asking price and you cannot ask for a better service than that.

Cheers to Nick and Peter
:tee:

 

[Alan Cockayne]

Census

Hi All,

I'm interested to hear some positive stories about how well you've done with your investment in Egypt?

What did you buy your apartment for and when?
And what's it worth now?

I want to try and put some real tangible capital growth figures together. It's a great investment location and we all know prices are shooting up but I'm keen to hear some individual examples and hopefully put some stats together.

Please fill in the Poll above with your answers as well as posting your experience...

Many thanks
Nick

Good idea Nick. We could all do with a boost in moral.

But the census is flawed. You need more statistics for a true evaluation of the Egypt market.

e.g. Those buying 5 years ago with their projects now completed would have been the cheapest and now more desirable than those built last year at the top of inflated prices. And with possibilities of not completing the site due to the current economic climate, some owners are in negative equity.

So who can give a true value?
There are no private RICS officers in service and given that Egypt banks are today valuing at around 50% - 60% of the asking price with little hope of a mortgage, often without full ownership documents, it is only worth what a customer is prepared to pay for it.

The market at present is looking for distressed sales. It would be interesting to see how much investors have lost for their eagerness.

Apologies for telling the truth Nick, however we may all be interested in the poll and hope there is an upturn in the truth as much as in sales.

Alan Cockayne. CIM.
Coralife-Style Consultants.

 

[t.rob]

joke

Forgot to mention that my resale agents were Nick and Peter from Egypt-Real who are premier members of this forum and they did a fantastic job considering their main focus is on pre construction properties .

We determined a price between us that I was happy with and factored commissions and marketing costs seperately.

The sale was agreed within 48hours at the asking price and you cannot ask for a better service than that.

Cheers to Nick and Peter
:tee:

do they supply you sakara LOL

 

[danny]

do they supply you sakara LOL

Peter has never bought me a drink, but then again he may never have bought anyone a drink, so I don't think I am special.

Nick has bought me many a drink and is very good good company.

The purchaser of my apartment was so impressed with my apartment that he took me out on New Years Eve and spent $2000 dollars on crystal champagne at the marina and every time we meet in Hurghada he brings me real Russian vodka and caviar.

Quality apartments will always sell.

 

[t.rob]

good luck

Peter has never bought me a drink, but then again he may never have bought anyone a drink, so I don't think I am special.

Nick has bought me many a drink and is very good good company.

The purchaser of my apartment was so impressed with my apartment that he took me out on New Years Eve and spent $2000 dollars on crystal champagne at the marina and every time we meet in Hurghada he brings me real Russian vodka and caviar.

Quality apartments will always sell.

hi danny
did your russian friend have a white stick?

 

[danny]

hi danny
did your russian friend have a white stick?

Joking aside, I bought originally at the British Resort.
The marketing for the resort is very low key and I stumbled accross it to be honest with you.
It is probably the best built and maintained complex in El Kawther. Whilst I lived there a lot of people who came to look around the complex wished they hadn't commited themselves elsewhere and some who had, bought second properties on the resort.
It wasn't without the usual issues, a year late & poor communication from the developers agents, but I was very happy with my purchase and only sold for commercial reasons.
A lot of problems occur when you start to finish apartments IE putting in kitchens, light fittings, curtains and such. You cannot leave the finishing to any workers to complete without supervision as the minute your back is turned they will either down tools or botch up the work. You can get decent apartments in Egypt and you can get decent developers, but no amount of due dilligence will assure you of this as has been proved recently on more than one development in Hurghada which I am sure is not exclusive to Hurghada but inclusive of the whole of the Red Sea.
There appears to be no one regulating who can build or who can sell properties and whilst this remains it's a lucky dip.

 

[t.rob]

BR

Joking aside, I bought originally at the British Resort.
The marketing for the resort is very low key and I stumbled accross it to be honest with you.
It is probably the best built and maintained complex in El Kawther. Whilst I lived there a lot of people who came to look around the complex wished they hadn't commited themselves elsewhere and some who had, bought second properties on the resort.
It wasn't without the usual issues, a year late & poor communication from the developers agents, but I was very happy with my purchase and only sold for commercial reasons.
A lot of problems occur when you start to finish apartments IE putting in kitchens, light fittings, curtains and such. You cannot leave the finishing to any workers to complete without supervision as the minute your back is turned they will either down tools or botch up the work. You can get decent apartments in Egypt and you can get decent developers, but no amount of due dilligence will assure you of this as has been proved recently on more than one development in Hurghada which I am sure is not exclusive to Hurghada but inclusive of the whole of the Red Sea.
There appears to be no one regulating who can build or who can sell properties and whilst this remains it's a lucky dip.

must admit danny did have a look around BR and was impressed.

 

[distant dreamer]

We bought a resale in El Gouna a few years ago, when prices had already quadrupled, so paid top money for a small apartment, but great location, but reckon may have made about £20,000 on that. Also bought off plan on El Andalous, front line Sahl Hasheesh - which has just completed and everything finished to very high standard, so expect to have doubled our money on that one!