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grays4u
New Member
i think people that have invested needing and expecting lots of rental income might be diisapointed .i can see there will thousands of units to rent in the next few years.
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dave2u
New Member
i think you might have a chance in tourist area hurghada but if you have paid 50/60k in sahl-hasheesh.and you need 300/400 per week you might struggle time will tell
Peter Mitry
<B>Egypt Forum Founder Member</B>
Rental returns in Hurghada
100-150 GBP per week is perfectly possible in Sahl Hasheesh once the resort is completed. You cannot compare a 3 star hotel in Hurghada with Sahl; and remember the hotel is per person, not just a one off payment. Just look at the internet for rental prices in El Gouna and you will see....
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--2cents
New Member
Judging from the response i got from a couple of agents when i was out there last year looking to buy, i was put off a bit. They didnt really wana talk about rental prospects in Hurghada, although people do obviously rent there.
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JKoh
New Member
Hi everyone
I read that Pyramisa Beach Resort in Sahl is offering a 7% rental guarantee for 5 years for a hotel room studio costing about 40000GBP. If the concern is about good rental returns, which we may not see for the next few years until Sahl is more established, wouldn't Pyramisa be a better bet than a similar self-catering apartment in Sahl? I am pondering this question now as I am deciding on where to invest.
Anyone has any views?
Thanks.
I read that Pyramisa Beach Resort in Sahl is offering a 7% rental guarantee for 5 years for a hotel room studio costing about 40000GBP. If the concern is about good rental returns, which we may not see for the next few years until Sahl is more established, wouldn't Pyramisa be a better bet than a similar self-catering apartment in Sahl? I am pondering this question now as I am deciding on where to invest.
Anyone has any views?
Thanks.
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grays4u
New Member
hi when i looked at the Pyramisa Beach Resort in may the views of pool /sea where nearer the £60000 mark best of luck
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dave99
New Member
Studio with 8% rental arrangement
Hi Everyone
If all you want is a rental income I'll give you 8% for 5 years if you buy a studio for £40,000 - normal cost would be less than £19,000 but if you really want to pay £40,000 that's good for me.
Let me work it out.
£20,000 studio - plus 8% of £40,000 x 5 = £16,000 - TOTAL £36,000
Extra profit for me - £4,000 - plus interest I can earn on the extra £20,000 paid upfront at say 6% for lets say 10 years is about £12,000
That's you satisfied and I get an extra £18,000 over 10 years - I like it
Anybody want one - I could maybe even give a 9% income !!!
Anybody missing the point !!!
Hi Everyone
If all you want is a rental income I'll give you 8% for 5 years if you buy a studio for £40,000 - normal cost would be less than £19,000 but if you really want to pay £40,000 that's good for me.
Let me work it out.
£20,000 studio - plus 8% of £40,000 x 5 = £16,000 - TOTAL £36,000
Extra profit for me - £4,000 - plus interest I can earn on the extra £20,000 paid upfront at say 6% for lets say 10 years is about £12,000
That's you satisfied and I get an extra £18,000 over 10 years - I like it
Anybody want one - I could maybe even give a 9% income !!!
Anybody missing the point !!!
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ukjoanie
New Member
I have been saying this since I first made a journey to Sharm to look at the real estate market (as a realtor in Florida),although I travelled from USA to Egypt, I was astonished to see the cheap package deals being paid for by the many British (that's me too by the way) tourists staying at Sharm.
There was no way that I could see buying a condo as an investor could justify any rental return when the 4 star hotels are going so cheaply. Add to that the developments that I looked at had incredibly basic accommodation and virtually no facilities, except that you could use the nearest Hotels facilities!
I keep hearing how Egypt is the next big thing in the rental/short term market, but I dont see it!!
There was no way that I could see buying a condo as an investor could justify any rental return when the 4 star hotels are going so cheaply. Add to that the developments that I looked at had incredibly basic accommodation and virtually no facilities, except that you could use the nearest Hotels facilities!
I keep hearing how Egypt is the next big thing in the rental/short term market, but I dont see it!!
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JKoh
New Member
Please refer to posting by dave99.
The difference is that Pyramisa is in Sahl Hasheed and located frontline beach by the pier and sunken city dive site; developers are an established large 5-star hotel group in Egypt; they run a cruise line: you have 4 weeks' stay of which 2 weeks you can exchange for a stay in any of their 5-star hotel or the Nile cruise ship. At least that's what I learnt from their website.
IF anyone can comparably give me all that above AND 8% or 9% rental guarantee for 5 years... I'll take it! To be fair, I think we should compare apples with apples.
I can EASILY find a studio/1-bedrm in Hurgurdah or thereabouts for 19000GBP, but even with a 8%-9% (or even 10%) rental guarantee, I won't buy it at a cost of 40000GBP. I'd be just paying myself!! But can one find a unit at that price in a frontline beach resort in Sahl (with or without rental guarantee)? Smallest units at nearby El Andalous and Palm Beach Piazza are, I think, currently above 50000GBP. Point taken from Grays4u that the unit itself may not be sea/pool-facing but it IS Shahl and it IS a frontline beach resort.
Rather, the points that concern me are: what happens AFTER the initial 5-year guarantee? How will the following rental arrangement be structured? How will it affect the capital appreciation of the unit if I want to sell after say 5 years? I have posed these questions to the agents and am awaiting the reply.
BTW, I confirm that I am a buyer and not an agent or representative from Pyramisa - in case this post makes me sound like one! I am just researching and learning from good advice in this forum.
Regards.
The difference is that Pyramisa is in Sahl Hasheed and located frontline beach by the pier and sunken city dive site; developers are an established large 5-star hotel group in Egypt; they run a cruise line: you have 4 weeks' stay of which 2 weeks you can exchange for a stay in any of their 5-star hotel or the Nile cruise ship. At least that's what I learnt from their website.
IF anyone can comparably give me all that above AND 8% or 9% rental guarantee for 5 years... I'll take it! To be fair, I think we should compare apples with apples.
I can EASILY find a studio/1-bedrm in Hurgurdah or thereabouts for 19000GBP, but even with a 8%-9% (or even 10%) rental guarantee, I won't buy it at a cost of 40000GBP. I'd be just paying myself!! But can one find a unit at that price in a frontline beach resort in Sahl (with or without rental guarantee)? Smallest units at nearby El Andalous and Palm Beach Piazza are, I think, currently above 50000GBP. Point taken from Grays4u that the unit itself may not be sea/pool-facing but it IS Shahl and it IS a frontline beach resort.
Rather, the points that concern me are: what happens AFTER the initial 5-year guarantee? How will the following rental arrangement be structured? How will it affect the capital appreciation of the unit if I want to sell after say 5 years? I have posed these questions to the agents and am awaiting the reply.
BTW, I confirm that I am a buyer and not an agent or representative from Pyramisa - in case this post makes me sound like one! I am just researching and learning from good advice in this forum.
Regards.
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Elspeth Chalmers
New Member
rental guarantees in Hurghada
It is very difficult to give a rental guarantee on any property here in Hurghada, the market is made up of a lot of long term holiday makers. Foreign ex-pats and foreign workers for tourism.
The average foreign worker here will pay from 1500 LE to 2000 LE to live in a nice area like Hadaba in a one bedroom apartment, maximum 2500 LE for a 2 bed apartment in Oasis. Large rentals therefore can only be achieved from holidaymakers.
It is very difficult to give a rental guarantee on any property here in Hurghada, the market is made up of a lot of long term holiday makers. Foreign ex-pats and foreign workers for tourism.The average foreign worker here will pay from 1500 LE to 2000 LE to live in a nice area like Hadaba in a one bedroom apartment, maximum 2500 LE for a 2 bed apartment in Oasis. Large rentals therefore can only be achieved from holidaymakers.
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dave99
New Member
Renatl amount per week ?
Is this per week - if so this is about £136 to £180 - so I assume that this is per month - being about £30 to £42 per week - not much
The average foreign worker here will pay from 1500 LE to 2000 LE to live in a nice area like Hadaba in a one bedroom apartment, maximum 2500 LE for a 2 bed apartment in Oasis. Large rentals therefore can only be achieved from holidaymakers.
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Elspeth Chalmers
New Member
Hi Dave, this is per month and this really is the average here in Hurghada. High rental returns are achieved through hotel lets. However if you are just looking to cover costs and rely solely on capital growth then rental to the foreigners living here is much better. They tend to take greater care of the property and its contents.
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Elspeth Chalmers
New Member
Dave - what u say is rubbish I live and pay rent every month here. If u work here the max is 2000 LE per month on a 1-2 bed apartment.
My friend Chris who has retired here from Ibiza rents a 2 bed apartment in Oasis this development is run by an English woman and he only pays 2500 LE per month. High rental will only be made from tourists and cannot be relied on all year round.
From January to March this is low season and all the rents drop. It is seasonal here.
My friend Chris who has retired here from Ibiza rents a 2 bed apartment in Oasis this development is run by an English woman and he only pays 2500 LE per month. High rental will only be made from tourists and cannot be relied on all year round.
From January to March this is low season and all the rents drop. It is seasonal here.
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awahee123
Banned
I am not even thinking about renting ,I think I will only rent to people I know and if it pays my yearly fees i will be happy.
propertywatch1
<b>Official Photographer</b>
Hi
Most of the developers here give unrealistic targets for rental income,again i think it all comes down to flight prices,whilst you can get a reasonable all inclusive deal its going to be hard to make a living from rentals.
There are 2 main driving factors in this debate one of course is the vast amount of properties being built here in Hurghada and the other is as we have said is the flight prices,it seems that flight prices are cheaper from other european countries than from the UK,so it would seem logical to look futher than just the UK to rent your property.
Remember the price of property here is on the increase all the time so its not always necessary to rent it out. Another option if you have bought as an investment ie:-not to use yourself is to rent long term to a high paid egyptian or a foreign worker here,that way you do have a guaranteed income all be it not as much but its still an income.
Ex-Boltonian living in Hurghada
Most of the developers here give unrealistic targets for rental income,again i think it all comes down to flight prices,whilst you can get a reasonable all inclusive deal its going to be hard to make a living from rentals.
There are 2 main driving factors in this debate one of course is the vast amount of properties being built here in Hurghada and the other is as we have said is the flight prices,it seems that flight prices are cheaper from other european countries than from the UK,so it would seem logical to look futher than just the UK to rent your property.
Remember the price of property here is on the increase all the time so its not always necessary to rent it out. Another option if you have bought as an investment ie:-not to use yourself is to rent long term to a high paid egyptian or a foreign worker here,that way you do have a guaranteed income all be it not as much but its still an income.
Ex-Boltonian living in Hurghada
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--2cents
New Member
Has anyone else discussed rental potential of units in Hurghada? One possibility would be long term tenancy. This was suggested by an agent who was new in the country saying that she herself had to rent for herself. There are enough Russianns.. in the area too?
Peter Mitry
<B>Egypt Forum Founder Member</B>
There are plenty of people needing to live and work in Hurghada as the entire town is expanding. Long term rental is certainly an option for those who do not plan on spending time in their apartments. It wouldn't work in the bigger front line resort areas as the owners here will do better with short term lets once the facilities are completed.
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--2cents
New Member
The agent I spoke with was an American lady working for a Russian outfit. She eluded to going for long rental due to the reasons u have suggested (workers needing long term place to live..) I cant see teh rentals being all that good though for teh type of holiday apartments people are buying.
propertywatch1
<b>Official Photographer</b>
Hi
When we moved out here over a year ago it was always our intention to purchase 2 places here in Hurghada one to live in and one to rent to get some form of income. We have a 120 sq mtr 2 bed 2 balcony property with shared pool and glass lift in the touristic area. Having advertised it with a few english rental companies nobody has replied.
The only way we found was to rent the property to foreign people working here or a high earning egyptian on a long term basis. This is due to the cheap all inclusive deals and the lack of cheap air fare. In the summer season there is only friday charter flights that are direct from the uk,but in the winter season the add aditional tuesday flights as well.
So to rent out on a long term basis you can expect a return of around 2500 3000 le per month as most people here want to rent long term. Until we have cheap flights here ( like easyjet flights to morocco ) then we will struggle to rent out to holidaymakers.
When we moved out here over a year ago it was always our intention to purchase 2 places here in Hurghada one to live in and one to rent to get some form of income. We have a 120 sq mtr 2 bed 2 balcony property with shared pool and glass lift in the touristic area. Having advertised it with a few english rental companies nobody has replied.
The only way we found was to rent the property to foreign people working here or a high earning egyptian on a long term basis. This is due to the cheap all inclusive deals and the lack of cheap air fare. In the summer season there is only friday charter flights that are direct from the uk,but in the winter season the add aditional tuesday flights as well.
So to rent out on a long term basis you can expect a return of around 2500 3000 le per month as most people here want to rent long term. Until we have cheap flights here ( like easyjet flights to morocco ) then we will struggle to rent out to holidaymakers.
propertywatch1
<b>Official Photographer</b>
The price quoted was not a guess but reality.Unfortunately the rental prices quoted by developers are unrealistic in Hurghada (Sahl Hasheesh/El Gouna are a different market i.e more upmarket).
Prospective purchasers of apartments sold in Hurghada need to be aware that it is not as easy to rent out their apartment as they may think.
As previously stated until we have cheap flights then we cannot compete with flight/hotel package.
The £3000 annum income for the rental of apartment is plenty to live on out here.
The quality of the apartments is not the issue its ALWAYS going to be dependent on the flight prices and availbility.
Though i am not to sure of why the reference to the Russians......To live and do business here in Hurghada one has to be respectful to all nationalities.
Prospective purchasers of apartments sold in Hurghada need to be aware that it is not as easy to rent out their apartment as they may think.
As previously stated until we have cheap flights then we cannot compete with flight/hotel package.
The £3000 annum income for the rental of apartment is plenty to live on out here.
The quality of the apartments is not the issue its ALWAYS going to be dependent on the flight prices and availbility.
Though i am not to sure of why the reference to the Russians......To live and do business here in Hurghada one has to be respectful to all nationalities.
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