Quote:
Originally Posted by Shkrjaga
Hello All! I'm planning to buy property in Hurgada for rent and occasional personal use. Upon examining this extremely useful forum I am in doubt what to choose: apartment in town or property in Resort. I tried to make comparison, using both numbers from this forum and obtained from developer.
Here they are:
1. Pyrasmiza SAHL HASHEESH 5* Resort, first line.
- Studio with the sea side view 47 sq. meters.
- Price $80 000.
- 4 week for personal use.
- Rental plan 8% x 3 years (the best).
- Rental income $4000 a year.
2. 1-bed in the second line in good location near the beach, Hurgada.
- price approx. $ 50 000.
- Rent at the worse price I've heard here - 100 pound per week.
- 4 week for personal use.
- Rental income 48 x 100 = 4800 pound = $9600 a year.
Let us assume roughly that agency fee, idle time and other expenses will half this: $4300 a year.
We can see that in worse case the income nearly the same when the Resort property price is 60% higher. Beside, I don't like the following in contract:
"15.2 In addition to the annual return on investment, the seller gives the buyer of the property or his guests the right of a free stay for a number of …… weeks annually excluding New Year week , Easter Week and the month of August and according to the availability within the resort . The buyer should notify the resort management one month prior to their requested arrival date .
15.3 The Buyer can exchange his week within Pyramisa Hotels & Resorts , according to availability."
So I have to book MY property in ONE MONTH!!! And it may be rejected "according to the availability within the resort"!!!
Isn't if a little bit unfair???
Any feedback truly appreciated.
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Hi,
It does seem a little unfair but you will have to weigh up what you want with this project: personal use or regular rental return. I visited the pyramisa and from what I saw it was very popular. Whether this stays the same when other hotels are up and working only time will tell.
Regards
Westmids33