I don't understand!

[bedouin]

I've been reading the Marsa Alam thread and it got me quite confused as to what exactly people are buying! What does it mean to buy an apartment in one for those resorts with guarantee rental income? I'm beginning to get the impression that those apartments are not to live in as I would only be allowed certain numbers of weeks a year , it all sounds very strange to me.

I'm looking to buy property for myself. Whether I choose to rent it or not is not an issue at this time but it has to be mine in every sense of the word. So with that in mind should I consider buying in those resorts?

[lyndsay552]

Hi bedouin,

Places like Marsa Alam do offer a gauranteed rental scheme, where you are only permitted to use your apartment a set number of weeks a year but in return you get a certain percentage of the value back. A rental management company or something similar then rents out your apartment.

This sort of scheme suits a lot of people who only want to use their apartment for few weeks a year and don't want the hassle of organising rentals.

But as with all these things it depends what you want the apartment for. As far as I know the guaranteed rentals schemes are not complusary and you can choose not to participate in them if they don't suit you.

I hope this helps

Lyndsay

[bedouin]

Originally Posted by lyndsay552

Hi bedouin,

Places like Marsa Alam do offer a gauranteed rental scheme, where you are only permitted to use your apartment a set number of weeks a year but in return you get a certain percentage of the value back. A rental management company or something similar then rents out your apartment.

This sort of scheme suits a lot of people who only want to use their apartment for few weeks a year and don't want the hassle of organising rentals.

But as with all these things it depends what you want the apartment for. As far as I know the guaranteed rentals schemes are not complusary and you can choose not to participate in them if they don't suit you.

I hope this helps

Lyndsay

Hi Lyndsay,

Thanks for your reply and certainly clarified things for me. I can only guess that if do not participate in the rental scheme that the price would be quite a bit higher.

Thanks again for your help.

[cin7166]

Originally Posted by bedouin

Hi Lyndsay,

Thanks for your reply and certainly clarified things for me. I can only guess that if do not participate in the rental scheme that the price would be quite a bit higher.

Thanks again for your help.

Hi Bedouin,
I have bought in Marsa Alam. The prices are not any higher if you don't want to participate in the rental scheme, but you will have to pay for the maintenace approx 50 Euros per month. In the rental scheme you get 6 weeks per year for your own use.

[lyndsay552]

I have actually heard the opposite. Some people are off the opinion that the guaranteed is actually just added onto the price of the apartment, so in effect you just get back some of your original money.

None of the apartments that I have bought are part of a guaranteed rental so I'm not too sure

Lyndsay

[cin7166]

Originally Posted by lyndsay552

I have actually heard the opposite. Some people are off the opinion that the guaranteed is actually just added onto the price of the apartment, so in effect you just get back some of your original money.

None of the apartments that I have bought are part of a guaranteed rental so I'm not too sure

Lyndsay

The apartment I bought is 40,000 Euros for a two bedroom and I did my research on others in the area, all selling for approx same price with no rental guarantees so I don't believe we will just be getting our money back. We get 50% back over 5 years so I can't see any other two bedroom apartments for sale for 20,000 Euros without rental guarantees.

[lyndsay552]

I did not say specifically Marsa Alam as I do think they are very reasonably priced and my Father very nearly bought in their other development in Zafarana. I was talking about guaranteed rental schemes in general.

Lyndsay

[cin7166]

Originally Posted by lyndsay552

I did not say specifically Marsa Alam as I do think they are very reasonably priced and my Father very nearly bought in their other development in Zafarana. I was talking about guaranteed rental schemes in general.

Lyndsay

Yes, I had heard the same about other developments. You just have to do the research on the area to see the prices of other developments and compare.

[realestatemart]

Originally Posted by bedouin

Hi Lyndsay,

Thanks for your reply and certainly clarified things for me. I can only guess that if do not participate in the rental scheme that the price would be quite a bit higher.

Thanks again for your help.

hello
why don't yu take inj other projects which doesn't have this conflict in your opinion? for living I would choose hurghada

[bedouin]

Originally Posted by realestatemart

hello
why don't yu take inj other projects which doesn't have this conflict in your opinion? for living I would choose hurghada

I don't like Hurghada and though I like sharm I would not live there. I want to be alone . I'm thinking Dahab, Marsa Alam, Nuweiba , Al Arish.......you know, relaxing and secluded. My first choice would be Dahab, do you know of reasonable priced house of land?