The Credit Crunch & Egypt

[iain]

Fair point Dave about currency - of course Egyptian rate of interest is pretty high which helps keep it strong.

[HORIZON]

Originally Posted by iain

Interesting reports Violeta. My point still remains valid though - imports exceed exports which was the point I was making and Egypt very much relies on imports.

Iain

Hello Iain, actually it is reported there is a balance of payment surplus which means exports exceed imports and more importantly the international reserves are enought to cover up of almost 8 months import to the country.

What I definitely agree about ir that Egypt is a growing and learning economy and uptil now we should admire what they have done. If only business mentalities of Egyptians themselves were higher, they would do much better even than they do now..

[iain]

Hi Violeta

I think where we differ is that I am talking about imports and exports (actual imports and expoerts as in commodities) I believe you are talking in terms of balance of payments which includes "Invisible" earnings - so for example earnings from Suez canal is not an "import" but an earning.

Iain

[HORIZON]

Well, even if you are talking about current account balance, it is still in surplus...

But yes, if you take commodity export/commodity import indicator it is more than 50% would suggest you are right Iain.

But even in the reports it is acknowledged that the price incerase impact on the economy is unprecendented.. So in the end it will be interesting to see how Egypt survives the current situation still in a growing phase. Right?

[iain]

Yup Violeta, I agree.

Let's hope it all goes well - no point in worrying too much. Looking forward to meeting all these lovely Russian cash buyers!

You can tell I just got home from a very enjoyable evening in a good old English pub, we cab still afford the odd drink thank goodness!

Iain

[Lsab]

Just read your post here Iain Press Release by Egypt Real - View Single Post and I must say that I think that you're making a lot of sense IMO.

Been talking to my husband about it and I've asked him to keep an eye on what the Egyptian media are saying about the credit crunch. He does point out that as tourism is a major earner for the country there is going to be problems as recession bites around the world. Holidays are one of the first things to go when people can barely afford their mortgage. The Suez canal is the second highest earner for Egypt and in a global recession, if trade falls off that will surely affect the amount of traffic using the canal. What he's trying to say is that Egypt can't be immune when the rest of the world is not. The stock market taking a dive mid week surely indicates this.

I still maintain that in the longer term, property is the best place to put your money!!

[Randall]

I for one am in for the long term. Lets hope all these developments get built!

I have noticed some adverts on agents sites offering 10% off...free air con...free furniture package.

No matter apparantly how good the Egyptian economy is despite the credit crunch ..... The buyers will be feeling the pinch, and thats all that matters.

I believe the Russians had lots of savings in the Icelandic Banks?

It makes you wonder now how people can have a guaranteed rental income? What if the recession lasts and it takes the economy a long time to recover....holidays will have to wait as bills and essentials will be paramount.

over to you.....

[Rivermead Global Property]

Originally Posted by Randall

I for one am in for the long term. Lets hope all these developments get built!

I have noticed some adverts on agents sites offering 10% off...free air con...free furniture package.

No matter apparantly how good the Egyptian economy is despite the credit crunch ..... The buyers will be feeling the pinch, and thats all that matters.

I believe the Russians had lots of savings in the Icelandic Banks?

It makes you wonder now how people can have a guaranteed rental income? What if the recession lasts and it takes the economy a long time to recover....holidays will have to wait as bills and essentials will be paramount.

over to you.....

Because most of the guaranteed rentals have been paid for by the buyer and they will be getting their own money back.

[jess100]

Originally Posted by Rivermead Global Property

Because most of the guaranteed rentals have been paid for by the buyer and they will be getting their own money back.

are you saying that you have sold property to unsuspecting buyers with prices increased to cover a fictional " rental guarantee"

VERY PROFESSIONAL

[Rivermead Global Property]

Originally Posted by jess100

are you saying that you have sold property to unsuspecting buyers with prices increased to cover a fictional " rental guarantee"

VERY PROFESSIONAL

Not at all what i am saying is i know properties are sold like this and as an example i got a 12% discount off the price for an apartment in Bulgaria becuase they offered 6% rental for 2 years and we told the developer it was wrong. So the client received a 12% discount and was then able to the rent the property out themselves.