Quote:
Originally Posted by Jeremy Sturgess
Hi Riccal
Welcome to the forum. There are several large off plan schemes around Cairo and many more planned. A lot of them have sold well like Allegria and Kattameya Dunes. In terms of buying existing property one of the problems you may encounter is getting good title. I tried to buy an apartment in Cairo a few years back and was offered financing as a foreigner by First Taamir mortgage co (65% LTV 10 year term 14% rate in Egyptian Pounds)- the problem was that whatever I looked at, and to be fair these were mainly central appts in old buildings in Zamalek and Mohandisen, these buildings had pretty unclear title history and most were not registered making it a risky proposition for me as a foreigner and unmortgageable. I wish I had bought it anyway as it was only USD 650 psm for 1500 sq mtrs in Zamalek with views over the nile and has probably doubled or tripled at least since ! We were renting it at the time for USD 1,100 pm so prospective yield was 13%.
This is one of the advantages of new off plan property in that its easier to get clean title. Most of the land has been allocated by the Tourist Development Authority (TDA) to the developer and provided you are dealing with a reputable developer you should be ok.
Yours
Jeremy
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Hi Jeremy
Apologies for the delay in responding. Just returned from Tangiers. Theres a market that I think is still quite good with the ongoing business development on Tangier. Having said that I sometimes find myself in a school of one with regard to Morocco as everyone else seems to think that losing the Expo in 2012 has sunk the market.
I understand completely your comments re title etc. in the cities. If I started to look at urban developments they would definitely be off plan. In the short term however I guess I will be joining the Red Sea train as being simpler.
What do you think will be the timetable for non developer finance? My understanding is that the commercial lenders will be able to enter the market locally. Will that go hand in hand with developer finance allowing better leverage do you think? Other markets always show an upward blip on the back of mortgages so can only be a good thing.
Cheers
Rick