Property rental issues

[amipraj]

Hi,

I am looking at investing in Egypt.

- Firstly can anyone recommend areas of purchase

- Anyone recommend solicitors as i can imagine all the regulations being in Arabic

- What is the rental market like there. In a year, how many weeks rent can you receive?

Thanks alot,

Amish

[alison9071]

egypt has a good potentail for rental due to then 365 days of sunshine with a 5 hour flight from the uk when choosing a destination for rentals is is important to think about several things 1 regular flights from major european countries , short flying time a good established rental market in place egypt has all of these but when choosing a place within egypt i think that you need to have some where that is central to take full advantage of all that egypt has tp offer that is why for me hurghada is the best not only is hurghada 20klm from sahl hasheesh with its golf courses itis only 10 klm from elgouna with its 2 golf courses the diving in hurghada and it surrounding areas such as sommer bay and safaha are world famous couple all of this with the fact that cairo is 30 mins from hurghada by plane at only £20 flying daily return luxor is a 3 hr drive or you can also fly there and sharm is a 90 min boat trip away so when renting a property here you have lot to offer any potentail tennants
solicitors i always think that it is wise when finding a lawer outside the uk to use the british embassey they will have infomation on lawers that they have checked out also the law society in the uk may be able to help you but always use a lawer that you are comftable with some lawers her are sharks so you must be careful
rental value
we have 2 resorts 1 beach 1 in the main touristic centre you can expect to get for beach front 350 euros per week for an 1 bed apartment that would cost you 50k or for 30k in the town a 2 bed can get you 300 euros a week both resorts have on site rental offices for rentals housekeeping etc.. and are both 5 star resorts
if you need any more help help please ask
thank you alison

[Peter Mitry]

Hi Amipraj did you find a suitable investment in Egypt? Sahl Hasheesh can provide 15% ROI net income based on 70% occupancy. Also, if you need a good lawyer Hamdy El-Sawy is the only Egyptian lawyer based in London who is a member of the British Law Society. If I can help PM me.

Sahl Hasheesh - luxurious Villas and Apartments in Eygpt

[wolfgang]

Peter,
Interesting projection.
Exactly how has this figure been derived?

[Peter Mitry]

Based on a one bedroom front line beach apartment in Palm Beach Piazza renting at 50 GBP per night. This is assuming that the complex will be managed by an International hotel group with 24 hour reception & concierge service and achieving 70% occupancy ( Hotels in Hurghada are achieving in excess of 90%). It also assumes a 40% management fee from the management company. Therefore 365 x 50 = 18250 x 70% = 12775 - 40% = 7765. 7765 as a % of 50000 = 15.33% ROI. It is likely that Palm Beach Piazza, El Andalus and Ocean Breeze will all be managed by such a company. The chosen operator will have established links with travel agents, tour operators,golf clubs etc. These figures are based on the resort being fully open - the first year is unlikely to be at this level but year 2 and onward should certainly achieve this projection.

[RedSeaRealEstate]

Dear Amipraj,
Market in the Red Sea is perfect for return on investment, its perfect sunny weather all the year, you can enjoy there the sun, sea, weather everthing u miss around the world, i advice you to buy a vill in a nice area, I know someone who have a villa in hurghada d\for sale, with sea view, Private Gardes, Private Swimming pool, Private Garage, on top of Mountain, beside Hilton Plaza, Rent of this villa could be Amazing I;m sure the return of investment on such thing will be perfect, also I recommend you el gouna, I have a friend there can sell you a villa or apartment ther in addition i know a property management company whom can take care of your villa and rent it for you and you just take a very nice profit so its real reat invesment
wish my advice was fine for you

[kerryman]

I have purchased a three bedroom apartment in a 5* resort adjacent to the Palmera Resort in Ain Soukhna on the Red Sea. The development is due for completion in Dec 2008.
Can anyone provide me with information on rental potential (either long or short term) or general comments on my investment?

Thanks all!

[Peter Mitry]

Hi Kerryman
I would appreciate any contact details you have for the Developers in this resort.

Many thanks
Peter
Mitry

[dave99]

Interesting that you are only now considering this aspect of your investment.
What research did you do before you bought, or were well and truly SOLD, and now you're a bit worried.

[dave99]

The rental potential anywhere on the red sea is not only controlled by the weather.
Supply and demand is the only real factor to consider.
I'm selling apartments off-plan in the Arabia District of Hurghada with "rental potential", but that's all it is, potential. There are a lot of apartments being built and without cheap flights there will be an over supply. If you buy into the guarenteed rental schemes then ask yourself how can it be guarenteed, and also ask what is the price WITHOUT the guarentee.