Egypt is not a third world country, but it is a developing country. It has no history of stability since the demise of the monarchy in the fifties,when the egyptian pound was one to one with british pound.

There is little to no chance that any foreign investor will be able to borrow money for any thing even off the biggest bank in the world (HSBC)

As a resident I enquired about a credit card here in Egypt, I have lived here for two years and have passed a very acceptable amountof money throughmy HSBC account. I also bank with them in the uk.

To geta credit card with alimit of 10000 le around 950 GBP all I have to do is lodge 20000 le with the bank.

This is worse than a debit card.

In summary any one that offers a mortgage to foreign investors is lying, it is a sales ploy to get people to put their life savings down as a deposit,expecting rental returns and loans that will not happen in the short term.

When people default the developer relies on the fact that the client will be too embarassed to make a fuss and walk away from their deposit.

Any one in this situation should realise they are legally allowed to claim back 90% of any monies paid by Egyptian law, making the mistake a little easier.

All banks in Egypt offer loans on property, non offer mortgages because in Egyptian Law,should the borrower default on payments,the lender has no rights to reposses the property.

So 6%, 10%, 15% or 50% the offer will never be realised in the current market place.

My humble advice,as a developer who wants to sell as many properties,as quickly as possible, is that, if you have not or can not pay for your investment from funds or equity you have in your own country, Do not get involved.

It is easy to let your emotions run away with you when you are having fun in the sun, but remember, act in haste,repent at leisure. There are thousands of properties for sale, take your time, consult a solicitor,do not be rushed in to anything. A respectable developer will allow youtime to check. But above all take advice from independant purchasers, there are hundreds on the web.

I hope this has been of some value to some people

Regards

Andy Harris

Peter we do not offer any loans on any developments, can you tell me where you got this figure as I think my wife may be going mad!

Now I'm more confused than ever.

First you post to say that Egyptian mortgages are on their way from HSBC for 6%

Then 20 hours later you post again to say that there's no way on earth that anyone's going to be getting a mortgage from HSBC any time soon and anyone who says it's possible is a cheat and a liar!

Am I missing something here?

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EGYPT REAL - Your One Stop Shop for Hurghada Property

Author of: Propertastic's Complete Guide to Hurghada Property and Egypt's Red Sea Riviera Real Estate

Oh - that was your wife before and now it's you.

OK, that explains it. My girlfriend/partner comes out with some mad things as well from time to time! :

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EGYPT REAL - Your One Stop Shop for Hurghada Property

Author of: Propertastic's Complete Guide to Hurghada Property and Egypt's Red Sea Riviera Real Estate

I have spoken to many lawyers in egypt, non give the same answer, also consulted the govermental bodies who are presently out at court to give definitive explanations. I have tracked down a maverick lawer (that reminds me of Love joy the antique dealer) who is british and has dealt in arabic countries for some years. His name is Phil Morris of Law limited and can be contacted at p.morris@lawlimited.co.uk, he is registered by the british law society. (sothat will cost more money, but you can negotiate)

Andy

"All banks in Egypt offer loans on property, non offer mortgages because in Egyptian Law,should the borrower default on payments,the lender has no rights to reposses the property."

Hi Andy

What is the difference between a "loan on property", and a "mortgage" in Egypt.

Any idea what the exact Egytian LAW number is that covers this issue please.

..
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So, there are NO mortgages available in Egypt?
This information would be interesting as it helps to drive the prices and adds liquidity to the market.

I would be surprised if there wasn't going to be any mortgages available in the Egyptian market,Lets hope someone can provide some concrete information regarding this topic.

Thank you Andy! This is what I have been saying for months. There are indeed brokers around offering 65% LTV on Egyptian properties at 6.5% interest rates but to my certain knowledge the company concerned could not confirm that any mortgages have yet been completed.
They present a clients personal documents to Egyptian banks, along with the due diligence on the project, and charge clients an up front arrangement fee.
The client then gets 'an offer in principal' from the Broker. This is not the same as a mortgage offer from a bank and anyone following this route should be absolutely clear that when the time comes to pay the Developer they will still have to find the money from somewhere or risk losing their property.
Please someone tell me I am wrong?

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PROPERTY SHOP INC. International Property Brokers
EGYPT REAL - Your One Stop Shop for Hurghada Property

I believe El Riad are 60 to 65% on lotus breeze.