I think the best way forward is for buyers to have their fees fixed for the first 5 years or so put it in your contract,remember when you are ready to sign on the dotted line you have bargaining power,use it the £ sign works wonders.
I'm sure the agents or developers won't like this but it's true.

Hi Alison,

is this still the case?

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regards
Stuart
stuartwemyss@fsadvice.co.uk

Hi Stuart - yes this is still the case. Paid mine in July so hopefully nothing to worry about for a few years. This is also drawn into the contract as well that they are refundable to you on selling. The new owner then pays their maintenance fee to the pot.

The British Resort operate the same system £1500 for life, the interest off each £1500 pays for maintenance. When selling the next purchaser pays you the money back.

Hi Danny - yes same as Sierra in Nabq. We estimated around £800,000 collected so the interest should last quite a few yrs.

Certainly beats getting a bill each year which is only going to go up. There is big business to be made in annual maintenance when you consider how little resort workers get in Egypt and how cheap most commodities are in comparison with other countries. It would make good reading to see a spreadsheet of how maintenance money was spent if you consider a resort with 300 apartments x £500(average) would pull in £150k per annum.

Hi Danny - yes totally agree. We will have a residents committee that will help to manage the maintenance fee account which I think is a good idea.

Since we are the first hotel that has actually opened its doors in Sahl Hasheesh since 1 year now, we are the only developer who already has the experience of maintenance costs in Sahl Hasheesh.

Our maintenance charges are calculated based on what we are already paying just for electricity and water for gardens and pools within our hotel in Sahl Hasheesh.

As each of the two compounds is on an area of around 59000 sqm . 80% gardens and walkways that need lighting and watering of the gardens. In addition to 3 swimming-pools.

Costs in Sahl Hasheesh are higher from Hurghada as these public utilities are provided by ERC.

We want to be honest with our buyers from the beginning and to keep maintaining the compound like a fully operating hotel all year round and not to cut down on services later on.

With a total of 350 units in each compound x GBP 960 ( average maintenance per unit ) = GBP 336 000 per year / 12 = GBP 28 000 / month to cover lighting / gardens/ pools/ security/ cleaning / garbage collection/ maintenance of the buildings and communal areas . I believe this is very reasonable. Other projects asking for less , don’t really know what they are talking about or they will not actually maintain the resort later on, or will ask buyers for more money every year.

Again as we are not just a developer or construction company that sells units and then disappears , we are meant to stay , manage and operate the resort for the benefit of the buyers and our benefit too.

I hope I have clarified this point for buyers and agents too.

Excellent post nazab and the first time anyone has actually provided a breakdown of costs and charges to show they have put some thought in to the cost and not just copied off someone else or plucked out of thin air.

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Best, Regards, Neil Hollingsworth Tel:01793 602490/07717826505
Email - neil@rivermeadglobalproperty.co.uk Find us on the FreeIndex directory http://freeindex.co.uk/profile(river...rty)_98122.htm and read our reviews.

.quote -
"Costs in Sahl Hasheesh are higher from Hurghada as these public utilities are provided by ERC. "

why should costs be higher than hurghada - how much higher - average £960 pa seems very high compared to hurghada.
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