Property rental issues

[J4hurghada]

we got 1 night at le perla only 3* but ok for one night in June for £11.00 b&b for two people, thats £5.50 each from the you travel site.

[awahee123]

Ive been past La Perla didnt really look appealing ,however I dont know what it was like inside.

[propertastic]

La Perla was where we ended up after we had paid our deposit for a 4* only to find that they had double-booked it.

It was terrible. GBP5.50 pppn is about all it's worth.

My girlfriend blamed me for booking such a rubbish hotel, which led to a row that led to our not speaking to one another for most of the trip.

So it was a rubbish holiday, but at least I had plenty of time to make my research, so it wasn't all a waste!

[Goldberg Global]

From people living in Hurghada, I heard the city of Hurghada had the best rentals, and the yield is around 10%. Resort communities will offer a different yield, and depends on the marketing and tour operater relationships with each developer.

Remember, and sorry to spell it out. The higher the cost of the property , the more rental it needs to get a good yield.

ie. a 20k property only needs 2k per year to generate a 10% yield
Where as a 50k property needs 5k per year to generate a 10% yield.

Yield is one thing, leverage and costs of finance and tax, costs are another thing. It is a combination, plus resale ability. ie. It is not that simple. One needs to know the city.

[awahee123]

Anybody know if there are any agents who are taking holiday rentals on board from any new developments?.

[propertastic]

Originally Posted by awahee123

Anybody know if there are any agents who are taking holiday rentals on board from any new developments?.

There are a couple of Desert Pearl apartments here as well as InterContinental 14B which also isn't finished yet either:

Hurghada Apartments - Compare & Rent Holiday Apartments in Hurghada

[awahee123]

Thanks for that neil,interesting prices
.

[J4hurghada]

Thought I would put this Thread in.

On most threads people are asking about rental potential. I feel being an owner of an Apartment in Hurghada and not renting. That at the moment in time buying to rent is not the best idea as Hurghada is just being built, if you are buying for an investment be prepared to sit on it for at least 5 years quick sale can make a bit of money. but look more at the bigger picture.

[propertastic]

Could you tell us what efforts you have made to rent out the property that have not been working?

[J4hurghada]

I decided not to rent when we recieved our apartment. The firm that we bought off said that if we wanted they would advertise it for us and take out commission. But in my views the hotels are so cheap at the moment and the flights expensive and with all over Hurghada looking like a building site it is best to sit on investment for 5 years then maybe rent not just to try to make quick killing at the begining. The prices of Apartments and Villa's are going up fast at the moment and I feel will continue for a good few year yet. When all the roads and Hotels have been build then the renting protential might be greater.