Hurghada Dreams

[danny]

Originally Posted by Rivermead Global Property

Here are some details of a company offering mortgages in Egypt however it is around 14% interest rates and only over ten years.

Briefly glossing through the guidelines for mortgages on offer, it would appear that these mortgages will be of no use to most purchasers as they only apply to registered properties and not for pre-construction purchases which is where the most profit is for any potential purchaser.

Hurghada Dreams will not be ready for registration for a good few months yet.

When the mortgage company value any property I think you will find that their valuation will be a lot less than the developers are asking for, part of the valuation will not include the vast marketing and comission costs.

The LTV of 85%, which is promoted by this company, will rarely be achieved and when the company tell you they think the property you are proposing to buy is only worth 50% of the price on offer I think you will run a mile.

If anyone needs a mortgage to buy a holiday home they should seriously consider whether or not they can tuly afford such luxury.

[Rivermead Global Property]

Originally Posted by danny

Briefly glossing through the guidelines for mortgages on offer, it would appear that these mortgages will be of no use to most purchasers as they only apply to registered properties and not for pre-construction purchases which is where the most profit is for any potential purchaser.

Hurghada Dreams will not be ready for registration for a good few months yet.

When the mortgage company value any property I think you will find that their valuation will be a lot less than the developers are asking for, part of the valuation will not include the vast marketing and comission costs.

The LTV of 85%, which is promoted by this company, will rarely be achieved and when the company tell you they think the property you are proposing to buy is only worth 50% of the price on offer I think you will run a mile.

If anyone needs a mortgage to buy a holiday home they should seriously consider whether or not they can tuly afford such luxury.

Hi danny, i was only giving the details of a company offering mortgages and before the trouble with ER they had pre-approved 55 mortgages on DP1 at 60% LTV and i am assuming at the lisyed price otherwise they would have been no good. They are also currently asking for application forms for Sunset Pearl in Sahl Hasheesh, niether developments are registered yet.

Have you called Dr Alia and spoken to her, she is very helpful why not give her a ring?

[danny]

Originally Posted by Rivermead Global Property

Hi danny, i was only giving the details of a company offering mortgages and before the trouble with ER they had pre-approved 55 mortgages on DP1 at 60% LTV and i am assuming at the lisyed price otherwise they would have been no good. They are also currently asking for application forms for Sunset Pearl in Sahl Hasheesh, niether developments are registered yet.

I was only giving details of Tamirs step by step guide to securing a mortgage from them on their website, perhaps they should clarify their terms and conditions with regards to non-registered and pre-construction properties.

I would imagine all those people who have had pre-approved loans will have paid an application fee which , after 90 days will have been lost, and it would be unfair for anyone else to lose more money in light of recent problems in Hurghada especially.

[Rivermead Global Property]

Originally Posted by danny

I was only giving details of Tamirs step by step guide to securing a mortgage from them on their website, perhaps they should clarify their terms and conditions with regards to non-registered and pre-construction properties.

I would imagine all those people who have had pre-approved loans will have paid an application fee which , after 90 days will have been lost, and it would be unfair for anyone else to lose more money in light of recent problems in Hurghada especially.

I fully agree and think the builders need to actually start to finish some projects before asking for final payments and i mean the full facilities not just the apartments, a completed property should be as it states on contracts. The property market here needs some confidence ejecting into it and i think builders need to do something about it before they drive all foreign investors elsewhere.

[kinnaber]

Originally Posted by Rivermead Global Property

I fully agree and think the builders need to actually start to finish some projects before asking for final payments and i mean the full facilities not just the apartments, a completed property should be as it states on contracts. The property market here needs some confidence ejecting into it and i think builders need to do something about it before they drive all foreign investors elsewhere.

The developer at Hurghada Dreams is refusing to pay late completion penalties.Contracts were due March this year and completion work remains some way off.Some of the excuses are unbelievable!

[queenie40something]

Thats not unusual for developers Im afraid - if they can get out of it they will. Blame it on anything - you can take them to court but more hassle than its worth.

[dave99]

Hi
Any contract term not complied with is bad news for everyone, and as you say confidence then becomes an issue.

Even though we have effectively completed our apartments (Red Sea Residencia) we are still having some issues concerning the builder.
The builder (not the developer who may be a different person) will be a big factor on any development, and it can sometimes get very difficult. Unfortunatly it's the Egyptian way and the real problem is that Non-Egyptians do not know to take this into account when dealing in property in Egypt.

No matter how much the developer wants to be fair there could well be things beyond his control, not least of which being the cash flow - I've no idea about this specific developer so this is just a bit on general insight.

Originally Posted by Rivermead Global Property

I fully agree and think the builders need to actually start to finish some projects before asking for final payments and i mean the full facilities not just the apartments, a completed property should be as it states on contracts. The property market here needs some confidence ejecting into it and i think builders need to do something about it before they drive all foreign investors elsewhere.

[LADY MUKK]

Hi all

i have just got back from sahl and had a very informative meeting at taamir with dr alia as i am buying at sunset pearl and using their mortgage. My mortgage with them is for 60% and it is 14% interest over 10 years. The administration fees are 3500 egyptian pounds which covers registration fees, water and electric meters. They have to register the property as you are entering a contract with the bank for ten years and if you default they then have a claim on the property without which they would not be able to do this, so its for their security and yours, after 5 years you can sell the property and pay back the bank, no problem. At the end of ten years they will give you a special power of attorney giving it all to you. I agree the website does seem a bit vague but if you call dr alia khoelief she is very helpful and will talk you through the process in detail and answer any queries you have, also she saved me £1000 in legal fees as the bank will do all that work for you and is included in the price, why do you need a one hurghada lawyer when you have 4 cairo lawyers!!!!!

[Alan Cockayne]

Originally Posted by LADY MUKK

Hi all

I have just got back from Sahl Hasheesh and had a very informative meeting at Taamir with Dr. Alia as I am buying at Sunset Pearl and using their mortgage. Well done
My mortgage with them is for 60% and it is 14% interest over 10 years. The administration fees are 3500 egyptian pounds which covers registration fees, water and electric meters.

That's what the marketing and sales material said, so you bought because it seemed genuine. It is a high rate of interest though...
They have to register the property as you are entering a contract with the bank for ten years,

Question, is that the Judicial registration that is taking years to procure? If so the Bank will either agree that the Deeds of Ownership will be pending or you will have to wait years to move in.
If you default they then have a claim on the property; without which they would not be able to do this. So it's for their security.
Which is normal

After 5 years you can sell the property and pay back the bank, no problem. and because it is fully registered it has papers to go with it, it will help to sell the property quickly.
At the end of ten years they will give you a special power of attorney giving all the deeds of the property back to you.
like we do in the UK

I agree the website does seem a bit vague but if you call Dr. Alia Khoelief she is very helpful and will talk you through the process in detail and answer any queries you have.
I have two : When do they transfer their funds to the developer and when are you expected to make the first monthly payment.
She also saved me £1000 in legal fees as the bank will do all that work for you and is included in the price.
Of course. They are securing their assets and you pay for it.
Why do you need a one hurghada lawyer when you have 4 cairo lawyers!!!!!

Exactly.... But finally, which building inspector reports to the Bank and their lawyer that the property is completed and to your final satisfaction? It could be hundreds of miles from any office. Or is it left to the builder's discretion while you are in the UK?

I think every reader will be interested in all your answers.

Alan Cockayne - Coralife-Style Consultants.

[LADY MUKK]

Originally Posted by alan cockayne

exactly.... But finally, which building inspector reports to the bank and their lawyer that the property is completed and to your final satisfaction? It could be hundreds of miles from any office. Or is it left to the builder's discretion while you are in the uk?

i think every reader will be interested in all your answers.

Alan cockayne - coralife-style consultants.

hi alan

the mortgage company pay pyramisa on completion, i can move in straight away, and i start paying the mortgage then, the bank register it for me and they use their building inspector from real estate finance affair authority, mr mohamed el sayed mattar, and their own cairo lawyers. It is the same registration as everyone elses, no special treatment. I have already inspected it myself twice with the on site engineer last week and everything is as it should be, i could find no faults and everything works, its actually reassuring that i will be getting an independant inspection.
It is a high interest rate but i have had to go down this route as uk bank will not give you a mortgage on a property in egypt and will only give you a loan if you can secure it against your property in the uk, as i live with my parents i am not going to do that and risk their home. Hope that helps.