Forum Replies Created
- andymoose wrote:Hi,
Interesting to read about Egyptian property oppurtunities!!
I have just been working there for the last 18 months (construction/mining) and travelled through there 5 years ago…..in short, Im sorry to say I wouldn't be interested & would warn people to think VERY carefully before "investing" there.
Yeah sure its a great country to visit with lots of history, there are plenty of tourists flocking at the moment….along with plenty of property developers looking to cash in!. Just remember that Egypt is not unlike the rest of the middle east when political unrest arises…they are all connected, trust me! One affects the other in some way or another. VERY volatile situations arise very quickly & the first thing it affects is tourism. Which Egypt relies upon immensley. This happened while I was there….twice….Then theres the corruption, its rife…
Also, I think its just worth noting, that while some of these resort apartments are quite nice & luxurious within their own grounds, more often than not the immediate outlying areas & services are 3rd rate & the majority of areas resemble a tip or a bomb site…not very attractive. (depending on the area; Hurgada & south is a good example; Namah Bay & Sham el Shiek are OK, but the rest of the Sanai coast isn't…Dahab & SES have also been subject to toerroist bombings in the last 2-3 years, not to mention what happen 10 years ago at Valley of the Queens!!) To give you an idea on the image of most of these towns/areas, all the business/local apartment buildings built next to these resorts are never completed; as there is a local completion tax when the buildng is finished, most Egytian entrepenuers leave the top story unfinished so they dont have to pay the completion tax resulting in an unsightly streetscape next to resort apartments!! Also, business wise the people are difficult to work with at times…this would be a very challenging situation for an investor.
My only advice for those thinking about this is that you need to Keep It Simple & invest in a place that has had a good history of growth with minimal volatility…especially in these economic times!! If the US, Uk Europe & Aust are doing it tough in various markets, housing etc & the talk of recssions, what do you think happens in the poorer, more unstable countries….Dont want to sound too negative or against the idea, you just need to tread carefully in these countires. I would want to keep my investments in historically good areas & close enough to keep an eye on myself….
regards
AndyI would comment one thing. Only buy in emerging markets with somewhat difficult laws from a reputable developer. Why do we say that – as we have been offered some very unsuitable projects for the last year and have not heard of the developer before so we don't touch. It is worth paying a little extra and at least you know you are getting results. The Egyptian market is good and returns are high. Be careful and do due diligance on the builder or developer. We did. That's why we thus far only work with one and are comfortable in doing so for at least the next 10 years.
Mystery wrote:Geez, they are bargain priced …… lolI used the currency converter on the cheapest property I found on your site and it is $753,000 AUD for a 2 room or 2 bedroom I presume. Way over my risk factor ……. good luck
Generally in Dubai you can enter the market for about $300,000 AUS or even less if you find units that have come back on the market. Some developers offer their agents stock units that are not on general release.
In Ajman which is about a 20 minute drive North East you can enter the market for half this amount easily – and with reputable developers which are global concerns.
The best time is to get in at the pre-launch level. We have just had one that started with a 7% discount on street prices.
Note – commercial real estate has gone from around 1400 AED per Sq ft some 9 months ago to 2600 AED – 3600 AED with no trouble at all. And with sq ft prices still half of what you would pay in New York and a Quarter of that in London UK you might get an idea of the potential.
Abu Dhabi is expensive but a market where property goes like hotcakes. One developer released 12 buildings today. 8 were sold out before they reached pre-launch status.
Crazy perhaps – we still look at sq ft prices and it is below what you would find in comparabel cities like London UK, New York, Tokyo and Hong Kong. Lest not forget this is going to be a very large finanacial centre – perhaps the main one as the middle east seems to be propping up many financial markets as of now. Look at City Bank in the US – makes you wonder!
You can get finance from several sources. We work with developers who have some 10 or so banks in hand. Some will lend to non -nationals without Dubai status and without having a job there. There are also a growing number of 'Globally' known banks for want of a better word that will lend to a very wide range of nationalities.
Not every country is catered for and applications must be submitted just as if you were buying investment property in your local country.
We work with 10 developers and have all the details about finance.
Paul
We have a number of clients waiting in the wings so to speak. Very odd waiting for the locals to foreclose or simply walk away from the units they reserved back as long ago as 2004. We are getting offered deals but there is still from what is being said an element of have we bottomed out yet? Just today the press noted California property losing $2,500US in every week. Keep that up and prices will be half by the time this is settling.
Very unsettling.
But then again we are in the same boat – waiting and watching for the right time.
Paul
I cannot see an answer readily to the question. We have read and are aware that there are no restrictions on foreigners / non nationals buying property except in Oklahoma where foreigners are not allowed to buy land but they can buy condominiums.
That said of course you cannot use the property as you need to adhere to the time limits set by the government regarding time resided. Last time we looked into it – it was 3 months in a year.
Hope that helps
Paul
Having lived in Canada for 2 years we have not even heard of the idea and knowing how much apart the 3 Amigos are – US, Canada and Mexico we could never ever see that happening unless the US invaded both countries and what point would there be in re-naming the Greenback?
Very odd to even think about it.
Paul
One spot you may want to look at is Germany – not so much the residential side that is flat but commercial or retail. The prices are well below the level of comparable cities in Europe like Paris, London (of course) and Madrid. Not really on the radar and has been left behind. Really depends on how much of a cold the markets overall get from the Sub-Prime domino affect.
London should remain stable if the BoE drops rates as indicated. The remainder of the UK will though suffer.
Paul
India – we have been inundated with offers to present property located in India to our database and post online. To be honest we have found it very difficult market as it seems to be littered with people not telling the truth. Buyers beware. If you want to look at new markets it may be better to explore them with known globally represented developers. It may cost you more but it should put more peace of mind the the equation. Also we had been approached by people based here in North America selling Studios in India for over $250,000 which to me speaks a warning sign. If you have difficulty in selling studio in the USA for this level one wonders if the locals on a general level could afford them. Think of trying to sell locally. I know there are some great opportunities and some real gains to be made. But caution with who you are dealing with.
Paul
The growth rate in Commercial Real Estate in Dubai has been on the increase for some months. It has taken over from Residential in terms of the take-up rate and we are now seeing REITS and Fund Management Groups buying up wholesale. Look for where companies are re-locating to and why. This will give you a good indication of trends. Looking for areas with lowering manufacturing or service sectors that are intent on outsourcing will only lower take-up rates and lower values. Follow company intent — especially corporates as where the 'BIG BOYS' go the minnows follow to serve.
PaulAnother important aspect if you are looking at trends is to check the values of real estate in the past with the local authorities. This means you can get an historical view of the trends to see if it is up or down. It is very easy to get carried away with what the Realtor says, the brokers says, what the developer says, and what the contact says — all of these are opinions. Even the appraiser will only base their opinion on past circumstances and add a bit of guesswork. But if you mass all of the data together and check with the Registry Office you will at least get an overall view. Visiting — you may only get to see what they want you to see. I have been around real estate for 25 years and it is not the most honest of industries — so it pays to get to know who you are talking to long-term.
PaulBut a very visible one neverthless. Not meant to be an advert though.
Sorry if it comes across as one
Cheers
Paul
