[Chris Sutton]

Can someone tell me what is the best way to pay for a property in Egypt if the money is in a bank account in the UK ?

(there is a limit of L.E.5,000 and $10,000 or equivalent, on the amount of cash allowed to be carried in or out of Egypt.)

Do I need to initially go out to Egypt (Sharm El Sheik), open a bank account in person, then return to UK and ask my UK bank to transfer the funds to the bank account number?

Or is it possible to go out to Sharm, set up the bank account and then simply phone my UK bank to tranfer the funds without having to come back to UK ?

Or is there another way ??

Thanks

 

[Gounie]

Or........maybe you find a resale property? You will be happy that the property has been built, is maintained and that there are other happy owners living there. And then maybe the seller wishes to have the money in the UK rather than have the problem of getting the money out of Egypt. There are probably a lot of Brits wanting to sell?

I bought a resale but set up a bank account when I visited the property first time and then transferred the money and returned to Egypt to finish the purchase.

 

[Chris Sutton]

Or........maybe you find a resale property? You will be happy that the property has been built, is maintained and that there are other happy owners living there. And then maybe the seller wishes to have the money in the UK rather than have the problem of getting the money out of Egypt. There are probably a lot of Brits wanting to sell?

I bought a resale but set up a bank account when I visited the property first time and then transferred the money and returned to Egypt to finish the purchase.

I am definitely going to buy resale. Maybe one around £60k to live in and two at around £35k each to rent out.
For one thing I can't wait 6 to 12 months while an off plan is built and you never know if the developer is going to go bust or just walk away with your cash for whatever reason.

 

[MaidenScotland]

I am definitely going to buy resale. Maybe one around £60k to live in and two at around £35k each to rent out.
For one thing I can't wait 6 to 12 months while an off plan is built and you never know if the developer is going to go bust or just walk away with your cash for whatever reason.

That is very true about the developers however are you sure you will be able to rent the other two out?

 

[Gounie]

For one thing I can't wait 6 to 12 months

Why the rush? It's a buyers market right now. Have you already lived in Sharm? It's a good idea to rent to make sure you make the right decision and get the right area, etc. Even in a place like El Gouna the wrong property can be on the market for years.

 

[Chris Sutton]

Why the rush? It's a buyers market right now. Have you already lived in Sharm? It's a good idea to rent to make sure you make the right decision and get the right area, etc. Even in a place like El Gouna the wrong property can be on the market for years.

Why the rush? ...Well I am in no great rush to buy. But once I have bought I will be out there with no income apart from what I get from renting out the two apartments. I would not be allowed to do any work so that would be the only option.
Do you think there would be a problem in renting them out ??

What is the going rent on a £35k one bedroom furnished apartment ?

 

[canuck2010]

Might want to see how the elections go before committing, no one knows what the economy will be like.

 

[Widget]

What is the going rent on a £35k one bedroom furnished apartment ?

Depends on what part of Sharm the property is in, if in Nabq or Hadaba a one bed can go for as little as 1,800LE pcm, wheoreas in Naama they go for anywhere in between 2,000 - 3,500LE PCM.

Also depends on the decor and facilities provided as well, some landlords opinion of furnished differs vastly from others!

 

[Chris Sutton]

Might want to see how the elections go before committing, no one knows what the economy will be like.

Do you think there is any chance the Egyptian government will change the law on foreigners owning and renting out property ?

...or the regulations on visas ?


Just one other thing -

I read that it's officially not permitted for non-Egyptians to own more than two properties but I've also heard that there are ways around that. Can anyone shed any more light on that ?

Thanks

 

[MaidenScotland]

Do you think there is any chance the Egyptian government will change the law on foreigners owning and renting out property ?

...or the regulations on visas ?


Just one other thing -

I read that it's officially not permitted for non-Egyptians to own more than two properties but I've also heard that there are ways around that. Can anyone shed any more light on that ?

Thanks

Personally I think it would be foolish to be thinking of buying property just now, no one can say what this government will and can do, don't forget this is a country that has brought in regulations one day and then thrown them out a week later.. nothing is set in stone nor does it takes years or months for new laws to be passed by parliament..

You ask about renting out your properties please read through all the threads and see how we have been chatting about no tourists, so who will rent your properties?

Have you been to Egypt?

Maiden

 

[Chris Sutton]

Personally I think it would be foolish to be thinking of buying property just now, no one can say what this government will and can do, don't forget this is a country that has brought in regulations one day and then thrown them out a week later.. nothing is set in stone nor does it takes years or months for new laws to be passed by parliament..

You ask about renting out your properties please read through all the threads and see how we have been chatting about no tourists, so who will rent your properties?

Have you been to Egypt?

Maiden

If I do buy it probably wouldn't be for at least six months anyway (as my rental contract is up then) so I will see how things go regarding the political situation.

As regards who will rent my properties I don't know - I suppose the same thing applies - wait and watch the situation and see if things improve. There is always the resident Egyptian populous but as to what level of rent they can realistically afford I'm not sure.
I suppose the best thing is to fly out for 2-3 weeks and do some research.

I did actually consider Thailand due to cheap property and low cost of living - but it p....s down for 3 months of the year - and its the other side of the world!

 

[MaidenScotland]

If I do buy it probably wouldn't be for at least six months anyway (as my rental contract is up then) so I will see how things go regarding the political situation.

As regards who will rent my properties I don't know - I suppose the same thing applies - wait and watch the situation and see if things improve. There is always the resident Egyptian populous but as to what level of rent they can realistically afford I'm not sure.
I suppose the best thing is to fly out for 2-3 weeks and do some research.

I did actually consider Thailand due to cheap property and low cost of living - but it p....s down for 3 months of the year - and its the other side of the world!

I think I can safely say in 6 months time nothing will have changed for the better here, it will be a long slow process before the country is back on its feet however the Red sea resorts due to their location will probably get there quicker than Cairo due to geography. If you are planning to come I advise you not to come during Ramadan as it is very difficult to do any business as the country stops work for a month.

Try and work out what you will need to live on, are you bringing a family? What standard of living are you used to? Renting out your property will not guarantee you an income, there are lots of properties sitting out there looking for buyers or tenants and you have them to compete with.

Maiden


ps a loaf of sliced bread cost me 88pence sterling yesterday, and they are tiny loaves

Local bread is cheaper because it is subsided but sometime one just long for a cup of tea and a slice of toast with Lurpak butter which is now costing 2.50 sterling compared to 90p just over a year ago,

 

[Gounie]

I remember reading that if you register your property as a foreigner you can only own two properties and you are not allowed to sell them within five years. Maybe this will change when they write the new constitution? Not sure if this applies to Sharm as all property there is leasehold whereas everywhere else is freehold I believe. Not everyone registers their property and you cannot register your property if the land isn't registered. Here in El Gouna the private town has been growing for over twenty years. The land is registered in segments and some areas are not registered so properties cannot be registered. Once your property is registered you could apply for a residents visa if you are not working and living on an annual tourist visa.

The best thing is join an Egyptian property forum. Unfortunately so many property buyers have lost their money here in Egypt that many forums were closed as the developers/agents threatened legal action as their bad reputations spread.

Regarding Thailand, I'm sure as a foreigner you cannot own a property alone?

 

[MaidenScotland]

If you own rental property here what is the tax situation on your rental income if you are a resident in Egypt?

 

[Chris Sutton]

I remember reading that if you register your property as a foreigner you can only own two properties and you are not allowed to sell them within five years. Maybe this will change when they write the new constitution? Not sure if this applies to Sharm as all property there is leasehold whereas everywhere else is freehold I believe. Not everyone registers their property and you cannot register your property if the land isn't registered. Here in El Gouna the private town has been growing for over twenty years. The land is registered in segments and some areas are not registered so properties cannot be registered. Once your property is registered you could apply for a residents visa if you are not working and living on an annual tourist visa.

The best thing is join an Egyptian property forum. Unfortunately so many property buyers have lost their money here in Egypt that many forums were closed as the developers/agents threatened legal action as their bad reputations spread.

Regarding Thailand, I'm sure as a foreigner you cannot own a property alone?

You can own a condo in Thailand in an apartment block but no more than 49% of the apartments in the development can be owned by foreigners.

You can't own a house. You can put it in a Thai persons name - but I wouldn't recommend that.

The main reason I considered Sharm or Hurghada was the affordability of properties. But with the political situation scaring tourists away maybe I have to reconsider the whole idea of buying to let.

I will join a property forum and see what the consensus is and take it from there but at the moment it doesn't sound promising.

 

[Chris Sutton]

If you own rental property here what is the tax situation on your rental income if you are a resident in Egypt?

I have no idea.

I'm hoping someone that has done that will reply and let me know.

How would the authorities know? do you have to show them proof of how you will support yourself ?

 

[Chris Sutton]

I think I can safely say in 6 months time nothing will have changed for the better here, it will be a long slow process before the country is back on its feet however the Red sea resorts due to their location will probably get there quicker than Cairo due to geography. If you are planning to come I advise you not to come during Ramadan as it is very difficult to do any business as the country stops work for a month.

Try and work out what you will need to live on, are you bringing a family? What standard of living are you used to? Renting out your property will not guarantee you an income, there are lots of properties sitting out there looking for buyers or tenants and you have them to compete with.

Maiden


ps a loaf of sliced bread cost me 88pence sterling yesterday, and they are tiny loaves

Local bread is cheaper because it is subsided but sometime one just long for a cup of tea and a slice of toast with Lurpak butter which is now costing 2.50 sterling compared to 90p just over a year ago,

If it's getting like that then why stay in Egypt ? It must have some attraction ? Do you get a pension out there ? Without that the only viable option is to buy to let as work is prohibited

 

[Gounie]

I met a guy here in El Gouna who was delivering a yacht to Thailand from the UK. He got as far as Port Ghalib and abandoned the yacht and flew the rest of the way. He then built a house, not sure how he got round the ownership. The house is beautiful with wonderful garden and pool. He has a young Thai girlfriend, fancy truck and motorbike. The bit that freaks me out are the vypers and big, fat pythons that he finds in his garden!!

I don't think anyone that rents out their properties declares the income. The rules are you must find your job before you arrive in Egypt. Many come here and then find work. But they are really clamping down on anyone working without a work permit now.

I love living here on the Red Sea coast. Been here 7 years, cost of living is cheap and I get my income from renting out my UK property. It's a wonderful life but you have to do your homework. Highly recommend coming out and renting first until things settle down and we know what's ahead and making sure when you do purchase that it is in the right area and right for you.

 

[Chris Sutton]

I met a guy here in El Gouna who was delivering a yacht to Thailand from the UK. He got as far as Port Ghalib and abandoned the yacht and flew the rest of the way. He then built a house, not sure how he got round the ownership. The house is beautiful with wonderful garden and pool. He has a young Thai girlfriend, fancy truck and motorbike. The bit that freaks me out are the vypers and big, fat pythons that he finds in his garden!!

I don't think anyone that rents out their properties declares the income. The rules are you must find your job before you arrive in Egypt. Many come here and then find work. But they are really clamping down on anyone working without a work permit now.

I love living here on the Red Sea coast. Been here 7 years, cost of living is cheap and I get my income from renting out my UK property. It's a wonderful life but you have to do your homework. Highly recommend coming out and renting first until things settle down and we know what's ahead and making sure when you do purchase that it is in the right area and right for you.

I suppose that's another way of doing it -- buy a UK property, get an agent to handle it and use that as income and then buy another in Egypt. No need to worry about the level of tourism in Egypt then.

Trouble is my total funds might only stretch to about £140k I would have to be clever and careful about what kind of property to buy in the UK in order to supply enough income and still leave enough to buy a place in Egypt. I live in Manchester (which has a large student population) and I know that in south Manchester 3 bedroom properties can be bought for around £90k.
3 x £300/month (ex. bills etc) = £900 minus 15% for the agency = £765/month ...which is about £176/week to live on.

Is 15% a realistic agency fee ?

...£176 isn't a lot but then I would have no rent or mortgage to pay in Egypt, just possibly a small ground rent as it would be leasehold and (minimal?) bills

If I can muster more than £140k then it becomes more viable still

 

[MaidenScotland]

If it's getting like that then why stay in Egypt ? It must have some attraction ? Do you get a pension out there ? Without that the only viable option is to buy to let as work is prohibited

The thread is not about why I am here.. I am trying to answer your questions/queries by telling you how I see things,