Advice for guaranteed rentals !!

[nazab]

Dear all , as we are the developers of hotels and residential projects in Egypt since 29 years, we regret to see complaints on the forum from buyers and investors because of developers in Egypt not honoring their rental guarantees.
So I would like to clarify this situation to prevent more buyers from having similar complaints.

Of course, I am not defending these developers who don't honor the rental guartantees, but I am also blaming the buyers who risked their money with an unreliable developer in the first place .

Before you decide to buy in a project, shouldn't you first be aware who is the developer behind this project ? Is it an individual or a company ? Does he have a history of similar projects ? Does he have the experience and know how to operate these projects to generate an income for you ?

A construction company, regardless how big and how famous it is, will never be able to give you a guaranteed rental because simply they are not in the business of managing or operating apartments. Even if they promise you that the property will be managed by the best and most famous prestigious hotel chain in the world, please don't take that as any guarantee. This management company might not take the management for any reason, and even if it does, it will never give any guaranteed rentals for the developer or the buyers. Why would they ?

As in our case, you need developers that are owners and operators of hotels and residential projects as well. That's why we have been giving guaranteed rentals to our buyers/investors for years, because this is our business; we build and we operate . We have excellent connections with various tour operators using our hotels all over Egypt and we are the number 1 Timeshare operator in the Middle East and thus we have a large mix of business channels that allow us to maximize the revenue and rental of the units we have and thus give guaranteed rental to our buyers regardless of the actual rented days of their unit. You are simply joining the huge pool and getting a guaranteed share every year.

So as most developers have realised that buyers are now mainly interested to buy a property that will generate for them an income as they will not use it themselves for the whole year, so they try to imitate and simply promise the buyers what they would like to hear without having any of the above infrastructure and marketing network !

But it is the responsibilty of the buyer to be selective and choose the developer based on the above explained criteria and experience ,that can really deliver what they promise , and save yourself the frustration and inconvenience to enjoy the vacation and investment you dreamed of.

[Rivermead Global Property]

Originally Posted by nazab

Dear all , as we are the developers of hotels and residential projects in Egypt since 29 years, we regret to see complaints on the forum from buyers and investors because of developers in Egypt not honoring their rental guarantees.
So I would like to clarify this situation to prevent more buyers from having similar complaints.

Of course, I am not defending these developers who don't honor the rental guartantees, but I am also blaming the buyers who risked their money with an unreliable developer in the first place .

Before you decide to buy in a project, shouldn't you first be aware who is the developer behind this project ? Is it an individual or a company ? Does he have a history of similar projects ? Does he have the experience and know how to operate these projects to generate an income for you ?

A construction company, regardless how big and how famous it is, will never be able to give you a guaranteed rental because simply they are not in the business of managing or operating apartments. Even if they promise you that the property will be managed by the best and most famous prestigious hotel chain in the world, please don't take that as any guarantee. This management company might not take the management for any reason, and even if it does, it will never give any guaranteed rentals for the developer or the buyers. Why would they ?

As in our case, you need developers that are owners and operators of hotels and residential projects as well. That's why we have been giving guaranteed rentals to our buyers/investors for years, because this is our business; we build and we operate . We have excellent connections with various tour operators using our hotels all over Egypt and we are the number 1 Timeshare operator in the Middle East and thus we have a large mix of business channels that allow us to maximize the revenue and rental of the units we have and thus give guaranteed rental to our buyers regardless of the actual rented days of their unit. You are simply joining the huge pool and getting a guaranteed share every year.

So as most developers have realised that buyers are now mainly interested to buy a property that will generate for them an income as they will not use it themselves for the whole year, so they try to imitate and simply promise the buyers what they would like to hear without having any of the above infrastructure and marketing network !

But it is the responsibilty of the buyer to be selective and choose the developer based on the above explained criteria and experience ,that can really deliver what they promise , and save yourself the frustration and inconvenience to enjoy the vacation and investment you dreamed of.

Good advice nazab, i think there will be a few people now realising what you have said above unfortunatley too late, they may also realise the price they paid had been inflated to cover this rental guarantee. It is also the option of buying a property without a guaranteed rental therefore not with inflated price and asking a good rental company to rent it out for you.

This also gives you more freedom as rental pools/guarantees generally restrict usage during holiday periods when you would want to use your own property. Please take on board the good advice given by nazab and buy with caution.

[nazab]

Originally Posted by Rivermead Global Property

Good advice nazab, i think there will be a few people now realising what you have said above unfortunatley too late, they may also realise the price they paid had been inflated to cover this rental guarantee. It is also the option of buying a property without a guaranteed rental therefore not with inflated price and asking a good rental company to rent it out for you.

This also gives you more freedom as rental pools/guarantees generally restrict usage during holiday periods when you would want to use your own property. Please take on board the good advice given by nazab and buy with caution.

Actually rental pools doesn't restrict your freedom of usage. On the contrary, because you are joining a rental pool used by holiday makers from all over the world , they have different holiday seasons and thus it works very well to achieve a flat occupency levels all year round and you can still use your apartment or even a similar apartment that is available during anytime of the year.

[villagerandy]

hi,
i have an apartment in hurghada village. you were talking a bit about rental companys. can you recommend a decent one?

[Red Sea]

Originally Posted by nazab

Dear all , as we are the developers of hotels and residential projects in Egypt since 29 years, we regret to see complaints on the forum from buyers and investors because of developers in Egypt not honoring their rental guarantees.
So I would like to clarify this situation to prevent more buyers from having similar complaints.

Of course, I am not defending these developers who don't honor the rental guartantees, but I am also blaming the buyers who risked their money with an unreliable developer in the first place .

Before you decide to buy in a project, shouldn't you first be aware who is the developer behind this project ? Is it an individual or a company ? Does he have a history of similar projects ? Does he have the experience and know how to operate these projects to generate an income for you ?

A construction company, regardless how big and how famous it is, will never be able to give you a guaranteed rental because simply they are not in the business of managing or operating apartments. Even if they promise you that the property will be managed by the best and most famous prestigious hotel chain in the world, please don't take that as any guarantee. This management company might not take the management for any reason, and even if it does, it will never give any guaranteed rentals for the developer or the buyers. Why would they ?

As in our case, you need developers that are owners and operators of hotels and residential projects as well. That's why we have been giving guaranteed rentals to our buyers/investors for years, because this is our business; we build and we operate . We have excellent connections with various tour operators using our hotels all over Egypt and we are the number 1 Timeshare operator in the Middle East and thus we have a large mix of business channels that allow us to maximize the revenue and rental of the units we have and thus give guaranteed rental to our buyers regardless of the actual rented days of their unit. You are simply joining the huge pool and getting a guaranteed share every year.

So as most developers have realised that buyers are now mainly interested to buy a property that will generate for them an income as they will not use it themselves for the whole year, so they try to imitate and simply promise the buyers what they would like to hear without having any of the above infrastructure and marketing network !

But it is the responsibilty of the buyer to be selective and choose the developer based on the above explained criteria and experience ,that can really deliver what they promise , and save yourself the frustration and inconvenience to enjoy the vacation and investment you dreamed of.

HI Nazab what developments you own????

[nazab]

Originally Posted by Red Sea

HI Nazab what developments you own????

Sunset Pearl - Sahl Hasheesh
Paradise Gardens - Sahl Hasheesh
Pyramisa Beach Resort - Sahl Hasheesh
Pyramisa Resort - Sharm El Sheikh
Pyramisa Isis Hotel Luxor
Pyramisa Isis Island Aswan
Pyramisa Suites Hotel & Casino Cairo

[Alan Cockayne]

Originally Posted by nazab

Sunset Pearl - Sahl Hasheesh
Paradise Gardens - Sahl Hasheesh
Pyramisa Beach Resort - Sahl Hasheesh
Pyramisa Resort - Sharm El Sheikh
Pyramisa Isis Hotel Luxor
Pyramisa Isis Island Aswan
Pyramisa Suites Hotel & Casino Cairo

Very well explained Nazab.

I'm sure there will be many disappointed investors that having read your documents will now admit to not having done their homework. It's such a shame.

There are those who are innocently led and those who can't tell the truth.
As we often hear it said "it is Egypt"
But I believe it can and will change for the better.

Alan Cockayne. Coralife-Style Consultants.

[Rivermead Global Property]

Originally Posted by Alan Cockayne

Very well explained Nazab.

I'm sure there will be many disappointed investors that having read your documents will now admit to not having done their homework. It's such a shame.

There are those who are innocently led and those who can't tell the truth.
As we often hear it said "it is Egypt"
But I believe it can and will change for the better.

Alan Cockayne. Coralife-Style Consultants.

Hi Alan, you know my views on the Egyptian property market however this practice is carried out worldwide as you know and not just Egypt. I explained to many people buying on one of these developments in Egypt but there is a certain amount of greed invloved and thinking they could earn lots of money from a guaranteed rental. The builders/developers just jump on this greed and know people will be sucked in!!!!