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Is Egypt’s Real Estate Sector Really Worth Investing In?

Feb 5

Posted by admin in Real Estate

Oh how I love a question that’s so easy to answer?is Egypt’s real estate sector really worth investing in?

Too right it is!

There are so many positive aspects of the property market in Egypt that make the entire sector an exciting place to be right now that anyone serious about venturing into an emerging overseas real estate market should be focused on Egypt for at least the medium term.

First things first let’s remove the confusion ? Egypt is not a country plagued by terrorism, drought or famine ? it’s a stunningly beautiful, ancient and interesting country with a coastline that is brushed and caressed by both the Mediterranean and Red seas. It is also one of the most exciting and exotic countries in closest proximity to Europe giving investors a massive potential tourist audience to target; it is also a country that can genuinely boast year round sunshine on its Red Sea Riviera which means it offers investors year round potential for profit.

If these are not reasons enough alone for a property investor to get curious about Egypt, how about the fact that Dubai based mega property developers Emaar have just committed millions of dollars to the Egyptian residential real estate market place in Cairo? Or what about the fact that the Egyptian government have slashed property related taxation costs to make the whole process of owning real estate in Egypt that much more affordable for more people?

You can add to this the fact that inward foreign direct investment into Egypt is at an all time high, the country is receiving higher annual visitor intake than ever before and the country is enjoying its best relationships with Western governments in documented history if you like.

Furthermore the amount of investment and economic confidence in Egypt is opening up a wealthy and growing middle class sector who are keen to afford property for sale and rent in Cairo and Alexandria in particular, and this gives an investor a local resale market to target in the medium term which further boosts the long term potential of an investment made into the real estate sector which is currently dominated by the tourism market.

It’s a fact that the highest rental incomes achievable for a real estate investor in Egypt right now are from tourist friendly properties along the Red Sea and Mediterranean coastlines ? properties that are well located and facilitated are most in demand from the tourism market looking for short term lets. But there’s also a growing retirement market in Egypt that’s attracting great attention and giving real estate investors another potential revenue stream to explore.

Egypt really is the place to be for real estate investors looking for immediate income and medium to long term capital growth and resale potential – and because the property buying process for foreigners in Egypt has become more affordable and more transparent in very recent years, the numbers of investors examining the market and exploring its possibilities is set to rise and rise.

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Finding The Right Realtor For Your Real Estate Needs

Nov 9

Posted by admin in Real Estate

Whether you are looking for a home of your very own or are interested in creating a long term working relationship with a realtor for the purposes of property investment it is very important that you find a realtor who will listen to your needs and wishes and act accordingly. The right realtor for your needs can mean all the difference in the world between a successful and profitable transaction now as well as many more in the future (if you plan on investing in multiple properties). Below are some important things to notice when selecting a realtor that will meet your needs.

1) Does the realtor you are considering listen to your needs? This is important as it will save you both a lot of time and money in the process of finding the perfect home for your family or for an investment property. If the realtor is constantly presenting properties that do not meet your budget or price requirements it might be a good idea to either lay down the law or find a realtor that is willing to expect your wishes and needs.

2) Does he or she ask questions and provide appropriate feedback? This indicates a direct interest in your needs, which is important-particularly when planning for a long-term investment relationship though some find it even more important when purchasing a home for their family home as this is a personal matter rather than a business matter. We all have a tendency to be more selective when placing the welfare of our family in the hands of another.

3) Do you feel comfortable dealing with the realtor you are considering? As I mentioned above we tend to be a little choosier when selecting professionals to help our families. Why on earth would be any less so when it comes to the realtor that will help our families find a home? Rapport is a good word to describe the sort of relationship you need to develop with your realtor. Do you have a good rapport with a potential realtor? If not, then move along. There are many realtors in most cities and there is absolutely no reason that you should deal with a realtor that doesn’t make you feel comfortable and secure.

4) How well does the realtor in question know the area in which you are seeking a home? There are many things that make a home a ‘good buy’ for residential and investment purposes. You want a realtor that has his or her finger on the pulse of the city and the various areas of interest, growth, and decline within the city. School districts matter more now than at any other time in our history in most cases, he or she should know about the schools, new business developments, and the value of property in the area (as well as the tendencies of property values to rise or fall over the last several years).

5) Does the realtor in question have specific experience dealing with your specific real estate needs? Whether you are planning a residential transaction or if you are seeking investment property you will need a dedicated and experienced professional that can help you meet your goals.

Realtors are a dime for a dozen in most cities and competition is fierce. There is no reason whatsoever that anyone should suffer with an agent that you do not feel is working for you or have your best interests at heart. If you invest a little bit of time and energy shopping around for the right realtor to meet your needs, you will find that your real estate transactions will take much less time and effort for this small sacrifice. It is much better to make the decision based on a few careful interviews in the beginning than after looking at fifty or more homes that do not meet your needs or price range. Then you have wasted a great deal of time and effort and you must still either risk wasting more time and effort or take the time to select another realtor for your real estate needs.

I also highly recommend selecting a real estate agent with a significant online presence. This means that he or she is making use of the available technology in order to offer more options to you as the consumer. Buying a house can be a mind-boggling process for the average person. Having a good realtor can make the process work so much more smoothly.

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Property Investment – Researching The Location

Oct 12

Posted by admin in Real Estate

It?s always wise to have an idea of what type of property you?re looking for when considering an investment and this article outlines 8 of the different factors to consider when researching specific locations.

1. Infrastructure

It?s important to consider a town?s infrastructure when looking for an investment property, especially in terms of what future investment is to be made in that area.

Local Authorities and Councils will have an annual budget for both the maintenance of current infrastructure and also for the construction of new infrastructure projects. Finding out how much the annual budget is and future investment will give you an idea of how proactive the authority is in attracting new residents, extra funding and business opportunities.

Most councils will be happy to provide most of the information and a lot of it will appear on their websites. Also look at the websites of local big businesses to get information on their future plans which will attract investment and create new jobs in the area.

2. Proximity to Amenities

In most cases, the main purpose in buying an investment property is to attract tenants who will pay a weekly or monthly rent.

It?s important to know what type of tenants you are looking to attract and so any potential investment property will need to be close to the amenities required by the tenants. A city worker will want to rent a property close to shops and transport whereas a farmer will have different requirements.

Most properties in close proximity to the town will rent fairly easily compared to those which are a 15 minute drive outside of the town. Properties close to the town will also attract tenants who don?t have their own transport.

So it?s best to know what your tenants requirements will be before you purchase.

3. Local Employers

It will always be easier to find tenants in towns where there are large employers in the vicinity. These include factories, large shopping malls, hospitals and universities.

With hospitals, many of the employees may be employed on a temporary basis and so owning or buying their own property in the area may not be a choice for them and renting is the easier option. Also, in the case of universities, a lot of the students will come from out of town and so renting is again the best option. This offers them more flexibility however it also means that your investment property could be vacant during certain months of the year and may switch tenants on a regular basis.

Again, be sure to research the future plans of these employers. If a major employer is due to shutdown or relocate in the near future then there will be a glut of empty properties with landlords doing whatever they can to fill them including drastically reducing the rent.

4. Geographic Location

This will determine both the type of tenant you get and also how easy your investment property will be to rent out.

Holiday properties near the ski fields will command a higher rent than a property in the city however it may only rent out for a few weeks per year. A beach house will also be in the same position. Again, it?s important to understand the type of tenants in the area, what they are looking for, how much they are willing to spend, etc.

A beach house may command a high rent but may only attract retirees who are willing to pay top dollar and so this narrows the number of potential tenants. Properties closer to cities and amenities will likely attract a higher number of tenants willing to pay a lower weekly rent.

5. Demographics

Spend time understanding the demographics of the areas population and you will have a better idea of the type of tenant you can expect.

Find out the populations? average salary, the different age brackets, percentage of those married and single and the percentage of the population that rent.

The demographic information will show if the town?s population has been growing or declining over the past number of years and therefore if an investment is a safe bet. It will give you an idea of the earning capacity of tenants and how much rent you can expect.

It may also show movements of parts of the population to new parts of the same area due to factory closures, increase in crime etc.

6. Property Median Prices

Historical property prices will be a good indicator to the fluctuations in property values in the area over time.

A property may look like a bargain at first glance but with a little research you may discover that the same or similar properties changed hands previously for a lot more money. There may be a simple explanation for this such as a vendor wanting a quick sale but it may also reflect a dive in the local property market for various reasons.

Median prices will give an indication of what you can expect to pay for the different types of properties (no. of beds, land size, etc) in the area and the figures may also show the number of recent sales. The historical figures will also give a pattern of historical growth or decline in the area over time and this could be used to indicate a property?s future value.

7. Occupancy/Vacancy Rates

Each area will have a certain percentage of rental properties tenanted (occupied) and the remainder without tenants (vacant). Towns with a high vacancy rate (normally deemed to be more than 4%) will make it possibly harder to find tenants to fill your rental property as it shows a lot of competition for too few renters.

Too few renters will also mean that landlords will have to be more creative in attracting tenants and may need to reduce the rent and offer other incentives to entice renters.

Areas with high employment and a strong outlook for the future are likely to have a higher occupancy rate and this may even cause competition amongst renters, allowing landlords to set higher rents.

8. Property Managers

Finding a trustworthy property manager is important if you will not be looking after the property yourself in terms of finding tenants and collecting the weekly or monthly rent.

Good property managers will communicate regularly, carry out periodic property inspections, arrange repairs and, most importantly, regularly deposit the rent (minus expenses) to your bank account.

There are also many other duties a property manager can carry out and it?s important to question those managers in the potential area to find one or more likely candidates that are going to take care of your investment.

Find out how many rental properties they manage, how long they?ve been in business and ay other questions you deem necessary until you find one you are happy with.

In closing, the above points are only guides for you to learn more about an area before you make an investment. There may be more factors you?ll need to consider depending on your situation but if you research the above you naturally increase the amount of knowledge you have about the area. And the more knowledge you have will reduce the risk of a potentially poor investment.

Tim Wright is an international property investor and regular article contributor. He is the author of \”Bulgarian Property – The Overseas Buyers\’ Kit available at http://www.bulgarianpropertybuyer.co.uk

Writen By : Timothy Wright

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Property Investment Strategies

Oct 9

Posted by admin in Real Estate

If stocks and shares have been too much of a roller coaster ride over recent years or you are simply looking to diversify your investment capital, you may want to consider the following property investment strategies.

Buy-to-let

The term \’buy-to-let\’ first came about during the mid-1990s and describes the practice of purchasing property to rent out to tenants.

Over recent years, buy-to-let has become very popular and with many people priced out of the housing market, there seems to be plenty of demand for rented accommodation.

When buying-to-let, ensure that you pick properties with rental appeal and that the rent you charge each month will cover the costs of the mortgage and management fees.

Property development

This strategy ranges from renovating run-down homes to purchasing land and building completely new houses.

Usually the developer will be able to spot some unrealised potential in the property and immediately after purchase begin making the changes to release that potential and increase the value.

Speculating

Put simply the speculator will buy the property cheap and go on to sell it at a higher price to produce a profit.

There are many ways for this to be done, including buying off-plan at discounted prices or predicting where the next property hotspot is going to be.

Speculators can also increase the value of their property by obtaining planning permission to build on the land, before selling it to developers.

Property speculation is often a medium to long-term activity, but a short-term version, often known as \’flipping\’ exists, where the property is immediately sold again shortly before or after purchase.

An example of flipping would be a property investor purchasing a house at auction and then putting it straight back on the auction the following week with the intention of selling at a higher price.

Degrees of risk

All of these strategies carry varying degrees of risk, but can also provide a good return on investment if properly managed. As always, investors are advised to seek professional advice before entering into any transaction.

Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development.

For more information and advice, search our property investment pages

Writen By : Don Suter

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5 Steps To Successful Property Investment

Oct 7

Posted by admin in Real Estate

When looking to invest in property it?s always important to take a structured approach to ensure you get only what you are looking for. Over the years I?ve developed the following structure and I?ll always stick to it so that I know I have done all the homework necessary to make a sound investment and reduce any potential risk to a level I?m comfortable with.

Step 1 – Research Research Research

This is possibly the most important aspect of any investment decision. When I talk about \’researching\’ a potential investment, what I mean is to do all the necessary homework to find out if the investment is right for you and if it will provide the return you\’re looking for.

Sometimes it is tempting to overlook research and maybe follow a tip from a friend on a potential investment. Many people also don\’t do research because they don\’t know where to find the required information and so they may make a blind investment, hoping on good returns. Even worse, they may put off making the decision (to invest or not to invest) and stay stuck in procrastination while the asset starts to show strong growth.

So what needs to be researched before investing in property?

Location – such things as the population, main industry, main employers, future investment in infrastructure, tourism, local universities.

Property prices – average, median, recent sales, potential rental returns, previous and predicted growth.

Tax and ownership laws ? country and state laws, occupier/investor tax rates.

There may be more areas you need to research depending on your situation but the main objective here is to carry out the research to a level you are comfortable with. You can never do too much research.

Thorough research will give you peace of mind to make confident investment decisions.

Whatever you are trying to achieve, someone has already done it before and the information is out there. It may be in books, newspapers, special reports, published on the Internet or available from real estate agents. You can find the information you need to make a confident investment decision.

Step 2 – Know your Numbers

Note: This step primarily deals with rental returns and does not take a property?s annual appreciation or depreciation into account.

Before investing in property it?s important to do the numbers to know

What you can afford to purchase

Purchase and ongoing upkeep costs

Potential rental returns

Monthly cash surplus or deficit

Once you know all of these figures you can then decide how much you can afford to spend within your budget, what rental return you?re looking for and whether you will gain a monthly cash surplus or if you will need to contribute towards its monthly upkeep.

So what are the common numbers to know and calculate?

The Purchase Price

Purchasing Costs ? items such as Stamp Duty, legal fees, real estate agents? commission, legal fees.

Rental Income ? If the property is rented to tenants, how much rent can you charge?

Ongoing Costs ? Management Fees, mortgage repayments, repairs and maintenance, letting fees, Municipal or Council rates.

Net Return ? this is the end result once you have accounted for all of the income and expenditure and it will show if you will have a cash surplus or deficit.

The more properties you calculate returns on, the better idea you will have of what is available in the market to suit your requirements. You?ll also protect yourself from any surprise costs. It?s wise to be conservative with your calculations and maybe add in a contingency amount.

Please remember, there may be more costs you need to factor into your calculations according to your situation

Step 3 – Create your Criteria

Before you go shopping for your investment property it?s important to know exactly what you?re looking for so that you buy a place that suits your requirements. The best way to do this is to create a list of certain criteria that a potential property must meet.

You may choose to be stringent on some of the criteria such as a set limit for the purchase price but then you may be a little more flexible on other criteria like accepting $10 less than the expected weekly rent.

So what would you include in your criteria? Here are a few suggestions:

Town population no lower than 10,000

Expected rent at least 7% of the purchase price

Brick house on land, no more than 10 years old

Initial repairs to cost no more than $1,000.

Whatever criteria you choose is up to you but it gives you control over what you buy and will certainly decrease the time you spend looking for a property. From carrying out your research and working out the numbers you should find it easy to create your criteria. Now you can go and buy the property that?s right for you.

Step 4 – Property Insurance and Management

Like any investment, we always look to minimise the risk of loss or damage and it?s no different when it comes to property. There are a number of ways to do this including taking out a suitable insurance policy and finding the right property manager.

Whether you buy a property to live in or rent, it is potentially at risk for various reasons and so you can insure the property against these risks. Insurance policies can cover you for loss in the case of structural damage, theft, flooding and many other instances.

Landlord insurance policies are also available for extra cover of instances such as malicious damage, legal fees, loss of rent etc. So shop around for the policy that?s right for you.

If you are buying a holiday home or a rental property you might consider employing the services of a Property Manager. The role of a Property Manager is wide and varied and a good one can save you a lot of time and money.

They can find new tenants, arrange to have your property cleaned, collect rent, keep an eye on your property, pay your bills out of incoming rent and much, much more. Finding the right Property Manager will pay off rather than choosing someone who won?t look after your property the way you want them to.

It?s important to shop around to seek out the best Property Manager and you can do this by asking the right questions. A good Property Manager will communicate regularly with you and be available to address any concerns you might have.

Additional measures to secure your investment include the local neighbourhood watch, security alarms, window locks and smoke alarms.

Step 5 – Tracking your Investment

Once you?ve invested your hard earned cash you?ll want to know how it?s performing and what sort of return you?re getting. Again, we?re only going to look at rental returns rather than growth as the growth is only speculative.

Every month you should keep all receipts of income and expenditure concerning the property. This includes:

Statements from the Property Manager

Bank mortgage statements

Receipts for repairs

Payment receipts for Municipality or Council rates

Any correspondence regarding the property

All we are doing here is tracking the income and expenditure so we can see what the return is. By tracking the figures regularly you can see how your investment is performing and this information can then be filed with your annual tax accounts.

Your accountant will be able to advise you on what extra records to keep ensuring you get the best annual deductions.

And that?s the final step to Successful Property Investment. All it takes is one step at a time to become familiar with the process and although there are many other ways and processes advocated by many other investors the end result is ultimately to leave you empowered to make the correct investment choices.

Tim Wright is an international property investor and regular article contributor. He is the author of \”Bulgarian Property – The Overseas Buyers\’ Kit available at http://www.bulgarianpropertybuyer.co.uk

Writen By : Timothy Wright

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What Else You Can Do to Sell Your Home Quickly

Aug 13

Posted by admin in Real Estate

So you’ve listed your property for sale and you’re getting some all important exposure for it so that people know it’s available. What else can you do to ensure that it sells and that you get as much for it as you should?

Well obviously if the listing is sorted, the rest is about the house itself – how you present it and how tempting it is to those who look around it. What can you do to make sure your house looks like a good buy and lets you reel in the buyers once you’ve caught your viewers’ attention?

First of all the house needs to be clean – you should ensure that you’ve got your house tidier than it normally would be and that everything is polished and dusted. While anyone who buys the house won’t be inheriting your clutter and dust (and while they’ll know this) it’s still just common sense to ensure your house is looking its best when people are looking around it as it will make it seem more appealing and make it easier for other people to imagine themselves living there. The idea is that they’re going to ‘project’ their ideal home onto the four walls you’re providing so you want it to look like a blank slate. It’s somehow hard to get excited about a room with dirty glass and stained carpets and it can ruin that image.

This means not only cleaning the inside of your home either, but also the outside – washing down the walls, adding more paint where necessary and brushing the leaves off the drive. All of this will help to improve their first impressions of your home, so that when they come down the road and pull up on your drive they’ll be impressed. This way they’ll start looking around your home already in a positive frame of mind and are thus more likely to be impressed and make a purchase.

For this same reason you should try not to clutter your house too much with your own things. This means works of art, collectables, ornaments, rugs and anything else that’s too ‘you’. The reason for this is again that it can stand in the way of them imagining the home the way they’d like it to look. For example, a young professional might be put off by lots of granny pattern or frilly curtains and will have a harder time imagining it as their own ‘pad’ or home office.

As well as cleaning and tidying you might also fix and renovate areas of your house where you think it will improve the value of your property to the extent that it’s worth the extra expense. For example, you might find that by adding an extra window in a particularly dark room you can increase the value by considerably more than the cost of the window and the installation. A smaller change might for example be to replace your door knobs with shiny new ones which can make a big impact on the whole house.

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Real Estate Prices In Australia

Jun 28

Posted by admin in Real Estate

Australia is one of those countries that everyone wants to live in. Almost everyone who’s thought of leaving their own country has considered migrating to Australia, and it’s more than likely crossed your mind at one point or another. But what is it about Australia that makes it such a tempting prospect? And is it a good place to move or to invest in? Well it comes down to climate, the people, the way of life, the wildlife, the scenery, the real estate prices and the work… not much then.

The enduring feeling that probably crosses all of our minds when thinking of Australia is that it’s supposed to be an incredibly laid back way of life. This after all is the country that coined the phrase ‘no worries’ and the friendly term ‘mate’. The image portrayed is always one of shorter working hours and a more relaxed pace of life – and in fact this image is accurate, with the place having one of the best work/life balances around making it a great place to retire to, or to head if you’re feeling a bit stressed at the pace of modern life where you currently reside.

Then there’s the weather, and Australia has a famously great climate all year round. This pleasant heat is partly what makes the laid back attitude what it is, and there’s the opportunity to go surfing at the beach without freezing to death, to bathe topless and to sit by the pool drinking a cocktail (and with no one nagging at you to go to work or do chores – they’ll all being doing the exact same thing).

The weather is then matched by the sheer variety of the scenery and the things to do. In Australia you can get thick jungle, empty planes and sprawling cities. From the great beaches to the exciting blue mountains there’s something for everyone no matter what kind of scenery you enjoy. And with booming cities like Sydney there’s also a wealth of entertainment for both night and day and you’ll never be short of things to do or places to entertain.

This range of scenery and great weather brings with it a great range of wildlife – from crocodiles to kangaroos to large snakes and spiders. While the last two might not be perfect for everyone (while it’s rare to find a spider in the toilet it can happen and might be something you want to consider if thinking of moving), the others can make for great safaris and are amazing for nature enthusiasts.

The work out there is also in abundance if you’re in the right profession – for medical professionals, carpenters, builders, plumbers and other physical labourers there’s a wealth of work and you can expect to get a visa and a salary fairly easy if you want to.

In terms of the Australian real estate prices you can be sure you’re making a good investment. With so many people dying to move to Australia you’ll be bound to sell your property fairly easily when the time comes and will also have no shortage of people wanting to rent your building for holidays and trips. While the real estate prices are fairly high in a lot of places they are all rising, and areas such as the Echo beach plots can provide fairly cheap grabs that will pay back in dividends.

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