Hi everyone,

Well we bought a resale, so the market does exisit!!! We didn't want to wait 2 years for the build time in El Gouna, so puchased a small apartment over 2 years ago now. The owner made a massive profit, about 3 times more than what he paid a few years earlier I think. But of course, he was staying in El Gouna, so obviously everything else had gone up accordingly, but if he'd been an investor I guess he would have been very happy with that.

Also I know someone that has bought a flipped apartment in Sahl Hasheesh already. The original owner made a handsome profit through getting in at the very beginning and just holding it for several months.

If you want to make money the key is to get in on release and take your chances. I learnt the hard way - if I'd bought in El Gouna in 2001, we could have afforded a detached 3 bedroom lagoon front villa, but a few years later our budget could only run to a small 1 bed apartment! Thats why when I heard about Sahl Hasheesh, we bought site unseen, as I was convinced it would be a brilliant development. If you do your homework thoroughly and go for the best apartment in the nicest development you can afford, I'm pretty sure there will be good money to be made over time.

Distant Dreamer is right; whatever happens in any market in the medium to long term property prices go up. As we all know, in the short term there can be glitches, like in Spain at the moment, but no one can doubt that the trend will always be upwards and will always outperform bank rates. The caution is not to get in the trap of needing the money during a market correction. Hang on and you will see handsome returns. This applies particularly in Egypt as most people are buying with cash and not fighting to service a mortgage.

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

The term " the next Spain" is used commonly and should be used with caution. Many people are saying the same thing about Morocco which I believe is more comparable to Spain in terms of the Medeteranian climate also the major Spanish developers and constuctors have moved away from the Spanish market into the more lucrative Moroccan market (Fadesa being an example). Because of its locality ie. close to Europe many Spanish, Uk, Irish and French investor are buying in Morocco, also EMAAR the giant Dubai construction company is building luxury resorts from the Northern coast of Tangiers to the mountain ranges of the Atlas mountains 40 minutes from Marrakech. So the term "next Spain" should be used wisely as Egypt is very different from Spain and in my opionion Morocco has more potential of being the "next Spain" due to it's climate and location.

Egypt, on the other hand is a good investment for other reasons (comparing it to Spain is not one of them). The benefits of investing in EGYPT:

1. Mortgage market in it's infancy;
2. Increase of low cost carrier flights;
3. No CGT or inheritance tax;
4. Prices are still very cheap (even after the recent rises) when compared to the rest of the developing or developed Arab Nations. Prices in Egypt will rise in the next few years so they will be comparable to these other areas;
5. GDP was 7% in Egypt last year which is healthy economic growth;
6. Stable economy
7. Government is actively encouraging foreign investment;
8. Dubai based construction companies are looking to develop exclusive resorts North of Hurghada and in Cario.

The term "Similar to Spain 15 years ago" is used too often and mainly by agents who tend to simplify there investment criteria to potential clients. NO, Egypt will not be like Spain but will be like Egypt because it has it's own unique set of criteria that makes it a worth while area to invest in.

As an investor one must always look at the Micro and Macro economic factors that will effect the growth of a country and not simplify it with such basic terms.


Regards

RED

An excellent assessment Red; when you are not upsetting Bob you are an asset to the forum!

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

Peter, stop being nice it un-nerves and makes me just a little tearful (LOL).

Regards
RED

I am ALWAYS nice its only others who are nasty to me!! Ask my wife (Oh perhaps better not!)

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

You madethe right choice distant dreamer you bought in one of the most hotspots which willbe realyamaizing and its price willbe up and up incoming period i just was there today

Whilst I agree with a lot of your post Red, points 2 and 3 should be clarified:

2. I assume you mean a "hoped for" increase in low cost carrier flights. I am not aware of any low cost carrier flights to any destination over about 4 hours from the UK. I think (but this is only guessing) that the budget airlines have problems with their business models over longer distances (hence not flying cheaply to the US).

3. My favourite bugbear - for UK domiciled citizens, both CGT and Inheritance Tax (should you become liable to it) is payable on your worldwide assets including, surprise surprise, those in Egypt. Not something the agents like to mention. They prefer to tell you there is none of those taxes in Egypt which may be true but is completely irrelevant to "normal" UK citizens which we find on this forum.


Mark .Y.

My personal thoughts are that resorts like Hurghada will be very popular within the next 5 years due to the fact that if the big boys keep moving in.

In regards to food outlets and nightclub chains McDonalds,KFC, Burgerking(new) and Ministry of Sound Nightclub these are shrewd companies and do not setup for the fun of it.

They expect the resort to build and build and this will certainly push the property market and the rental side.

I am giving it 5 years bought 2 places in Desert Pearl so will reaccess then and also see what the property prices are like then

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Martin
www.hurghadatouristguide.com
http://www.propertycommunity.com/forum/egypt...-services.html

Mark, I believe that Easyjet are planning to fly to Hurghada airport very soon (they may have already started). I also believe that other low cost carriers are considering flying to Hurghada as it's a growing market.

With regards to the Tax issue you make a valid point. But unlike other countries there is no VAT charge on off plan property.

I do however agree that other countries such as Morocco have better taxation rules ie. they have a double tax treaty rule with the UK where CGT is only payable once in Morocco (20% if you sell 1-5 years, 10% is you sell 5-10 years and 0% if you sell after 10 years). Also as there is a double tax treaty agreement with the UK no inhetritance tax is payable both in Morocco and the UK.

The Egyptian authorities should go along the same lines and introduce a double tax treaty rule with the UK and say charge 5% or 10% CGT only which will be payable only once in Egypt and then no tax payable in the UK