Having purchased in jan i was aware that the service charges where looking quite high on some developments £600/700 for 1 bed a little more in sahl.I think this is quite high as we know wages and the cost of living is very low and i think if you add this up on the number of units theres is a lot of profit being made. i have noticed a trend with properties in the low wage markets to charge as much as the uk buyer will pay and i do not think this is a true reflection of the costs. however my development is a more sensible £200 for a 1 bed and that includes the laundrey service on a development next to dessert pearl same builder. I think this a true refection of what this charge could be as these charges have been caculated in egypt by an egyption company and i am sure they will still make a heathly profit

Maybe you can offer a bit more insight into this one - its a good thread !

In isolation the amount for Annual maint fee is almost meaningless.
You have to take into account how much profit is being held back by the developer to fund the early years, and also consider what restrictions, if any there is on the increase in charges after the first year, and what you choose to actually cover in the fee and what you exclude.

Also if you have only a small number of units then the cost per unit is likely to be higher, if you have hundreds of units that have to share limited facilities it's easy to make a profit.

Will you have an owners club or somethihg similar that will decide what to charge each year and what to include or exclude.

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It is generally known that management fees in Sahl Hasheesh are 1€ per m2 per month. On a one bed apartment of 64m2 this comes to 720€ per annum. Compare this with a similar project in Spain where you could be paying up to 1800€ per annum for a lot less facilities. A client of mine with a 3 bed unit in Estepona is paying 480€ per month, nearly 6000€ per annum!
The fees in big resorts reflect a contribution to the vast expenses of 24 hour multi-point security, lighting, street cleaning and maintenance of public areas. At the outset it can only ever be a calculation and will normally be adjusted to reflect the true costs once the different communities are established and have they're own say.
In the smaller developments in Hurghada where there is no 24 hour security and few facilities provided it should bever be more than 20€ per month.

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i agree with dave on this one, it all eventually boils down to the size of the resort, 225 units conpared to 25 is a big different and should be reflected in the maintenance fee

my deveolpment is 250 units 2 swimming pools and gardens recieption 24 hr sercutity and may facilities and i said £200 per year next door same builder same spec but uk agents £600. Also i would have thought that security, lighting, street cleaning and maintenance of public areas was the resposibliity of the council and would be charged seperatly.The management compant set up will take say 150 units at £500 per year thats £75000 per year.thats a lot of money in egypt

Thanks for the extra info - are selling at about the same sort of price per apartment - if so then either you have underestimated the likely costs or there is some serious over charging - maybe the correct fee is somewhere in between - what are you telling your owners about increases if you get the costing wrong after a year or two.

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hi when i ment was by my development its the one i am purchasing i am not an agent or developer and i have the £200 per year written in my contract which i think could reflect a more realistic fugure for investors and i am opening the discussion to what is a fair price. i gave a Hyperthetical devleopment of 150 units at £600 would give £75000 wich i said is a lot of money in egypt if you are only looking after that one unit wages are so cheap hope that helps

I have to agree with grays4u on this one, developers who are charging £600/£700 a year maintainance fees for 1 bed apartments is a bit excessive especially in the relitive infancy of the self catering market in egypt.
The wages and cost of living are very low so surely this is an indication of greedy developers seriously inflating profit margins.

I know there is the argument that it is all down to the spec of the development, etc. etc. but relitivley £600 is alot of money in Egypt
and therefore is not true value for money.

Thanks for the clarification - seems to me the most likely issue for you the other owners is how do you control the annual charge AFTER the first year - do you have a fixed charge for a period of years or just first year.

It is not unknown to have a "loss leaders" in many selling situations, therfore it's back to what is the total package cost.
Put simply I could offer FREE maintenance for the first 5 years and simply add £1500 or something to the initial charge if this seemed to be important to the "market" that I'm selling to, or do it the other way around make annual fees £600 and drop the base price by £1500.

If your apartment is being sold at a little over price then that explains some of the difference.

If you need objective help we need more info please.

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Hi suleder is supposed to be £200 per year however I have seen them now advertising at £400 per year so well see,maintenance should be minimal for at least 2 years.