Property rental issues

[dave99]

Furnished or Not

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.

Not many people on this forum are interested in living in Hurghada and living off rental income - most are looking for a return on an investment, so £3000 pa and having paying to replace furniture, plus maint costs, plus agent fees, tax, etc does not give a return of any significance if you've paid £50K for a 3 bed apartment with all the trimmings in Hurhgada, or at least twice as much in Sahl Hasheesh or El Gouna.

The reference to Russians was from a previous post (not mine).


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[Peter Mitry]

It is a shame that Dave99 feels the need to frequently make racist comments; firstly he was slagging off the Egyptians and now the Russians (Oh! and a daily pop at Moderators as well). I would suggest that we would all benefit from positive constructive comment as this sort of negativity will drive away some members who do not want to read it.
As I am Egyptian by birth I do not feel that these sort of comments are necessary, nor do they add anything to the forum.

 

[dave99]

Oh dear me !!

Peter

If you would bother to read back through the posts you will see that this reference was NOT mine - it came from the previous post about the American that works for the Russians - so why get so uptight with me over something that you've got completely wrong.

I would have thought that making your comments in an open post is simply emphasing something that never existed until decided to make an issue out of nothing.

Have you forgoten about the private post box on the forum.

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[awahee123]

I would urge any person to think twice about making any type of RACIST remarks on this forum full stop ,it is unacceptable no matter what.
Regarding requoting what you know is wrong does not mean you can pass the blame onto the first post that posted any sort of racist remark,any person requoting must take ownership of the words they put onto this forum.
This kind of behaviour leaves you open to criticism, there can be no blame game here you are totally responsible for your comments.
Why anybody has to go down this road is beyond me this is a property forum and should be treated as such.
This is an open and shut case for Racialism no ifs no buts.

 

[Peter Mitry]

This thread will bring together all issues involving rentals

 

[J4hurghada]

I think it is a bit early to rent as the hotels are offering great deals for example we have just paid for one weeks all inclusive in a 4-5* hotel less than £50.00 per person. I am just sitting on our apartment and hope the value goes up over time.

 

[Janoulaki]

Right,

analysis of the rental market in region Northen Africa (Morocco)

Hearing about the huge rental demand in Moroccan housing market makes you believe that purchase of buy-to-let property will be profitable. However survey of housing sectors from 2006 shows that many of the region’s countries suffered from affordability problems rather than insufficient housing stock. While segments of the population, mainly the lower income groups, suffer from inadequate supply, many of the countries are facing over-supply for upper and middle income groups. In economical terms this means that the supply curves are inelastic. Result - increases in demand are not met by proportionate increases in quantity supplied, but rather, demand increases translate largely into rising prices.

this is analysis about Morocco from my guide (not finished yet)

I believe that it mainly applies to all region of North Africa

make your own opinion and do not attack anybody for a view

Good luck

 

[awahee123]

Hi j4hurghada would you like to share your info regarding your hotel for £50 per person per week.Info would be appreciated,thanks.

 

[J4hurghada]

Hi

Have alook at your holidays.com they just do hotel only for pritty low prices also there is you holidays.com too.

 

[awahee123]

Thanks for that j4 much appreciated will be helpful to the forum.

 

[J4hurghada]

we got 1 night at le perla only 3* but ok for one night in June for £11.00 b&b for two people, thats £5.50 each from the you travel site.

 

[awahee123]

Ive been past La Perla didnt really look appealing ,however I dont know what it was like inside.

 

[propertastic]

La Perla was where we ended up after we had paid our deposit for a 4* only to find that they had double-booked it.

It was terrible. GBP5.50 pppn is about all it's worth.

My girlfriend blamed me for booking such a rubbish hotel, which led to a row that led to our not speaking to one another for most of the trip.

So it was a rubbish holiday, but at least I had plenty of time to make my research, so it wasn't all a waste!

 

[DC]

From people living in Hurghada, I heard the city of Hurghada had the best rentals, and the yield is around 10%. Resort communities will offer a different yield, and depends on the marketing and tour operater relationships with each developer.

Remember, and sorry to spell it out. The higher the cost of the property , the more rental it needs to get a good yield.

ie. a 20k property only needs 2k per year to generate a 10% yield
Where as a 50k property needs 5k per year to generate a 10% yield.

Yield is one thing, leverage and costs of finance and tax, costs are another thing. It is a combination, plus resale ability. ie. It is not that simple. One needs to know the city.

 

[awahee123]

Anybody know if there are any agents who are taking holiday rentals on board from any new developments?.

 

[propertastic]

Anybody know if there are any agents who are taking holiday rentals on board from any new developments?.

There are a couple of Desert Pearl apartments here as well as InterContinental 14B which also isn't finished yet either:

Hurghada Apartments - Compare & Rent Holiday Apartments in Hurghada

 

[awahee123]

Thanks for that neil,interesting prices
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[J4hurghada]

Renting In Hurghada

Thought I would put this Thread in.

On most threads people are asking about rental potential. I feel being an owner of an Apartment in Hurghada and not renting. That at the moment in time buying to rent is not the best idea as Hurghada is just being built, if you are buying for an investment be prepared to sit on it for at least 5 years quick sale can make a bit of money. but look more at the bigger picture.

 

[propertastic]

Could you tell us what efforts you have made to rent out the property that have not been working?

 

[J4hurghada]

I decided not to rent when we recieved our apartment. The firm that we bought off said that if we wanted they would advertise it for us and take out commission. But in my views the hotels are so cheap at the moment and the flights expensive and with all over Hurghada looking like a building site it is best to sit on investment for 5 years then maybe rent not just to try to make quick killing at the begining. The prices of Apartments and Villa's are going up fast at the moment and I feel will continue for a good few year yet. When all the roads and Hotels have been build then the renting protential might be greater.