Buying a property in Egypt

PompeyPete

Read this current advice copied from an expats forum in Paphos:

Many people come across properties while on holiday, and often don't allow themselves time to think about the practicalities of their potential new home. It is easy to fall in love with a new place, but have you considered your options and circumstances? Before you start seriously looking at properties it is worth asking yourself a few basic questions, which although simple, could save you time, money, and perhaps a few tears in the long run:

How well do you know the country you want to move to? The language? The culture?
How well do you know the local laws? The local taxes?
How good are the local health and social services?
Will you have a pension? Will it be sufficient for your needs?
How much time are you hoping to spend at your new home? Would a time-share be more suitable?
If your new home would be a holiday home, would you tire of visiting the same place?
Do you have adequate health insurance/do you qualify for free healthcare?
How easy would it be for you to meet people in your new area?
How easy/cheap is it to travel to Scotland? Are you likely to have visitors?
Are flights readily available should there be a family emergency at home?
How adaptable are you to living in a warmer climate?
If your property is for retirement, would it be suitable if you have limited mobility?
How much work, and money, are you willing to put in to your new property?
Do you know the costs of insurance? Local trading costs?

Do your Homework

Research all legal issues and costs involved. This will take some time but if you fail to do so, you could find yourself in trouble. For instance, did you know that if you're buying in Spain you'll need to make out a will in Spanish before buying, or you can inherit debts from a previous vendor? If you die, is your Scottish will capable of transferring all property, wherever situated, to those you intend to inherit it? Would Scottish law be applied to the winding up and division of your estate?

Your solicitor/lawyer will advise and assist you but before you have decided on a property it is imperative that you are fully aware of the legal process and regulations involved in your purchase.


Use Professionals

Seek professional advice. Both in UK, and in your chosen country, seek the advice of experienced lawyers and estate agents. Only negotiate with ones that are officially registered, hold a licence and have experience of dealing with expats. Unless you are fluent in the local language, ensure those you work with have an excellent command of English. Seek recommendations from expats who have settled in your chosen area.


Sort out your Finances

Be well prepared with your finances; taxes can be high when buying. Being able to afford the advertised price of your new home is simply not enough. Will you be liable for tax in Scotland also? Have you accounted for potential labour costs, lawyer's fees, bills from your estate agent and furnishing your new home? Will you be paying from a UK bank or a new foreign bank account? Will you rent your property if it is empty? Bear in mind, advertising in UK for a property abroad could result in tax demands from both the UK and foreign authorities. Have you looked into inheritance tax? In Spain, for example, inheritance tax can be as high as 81.4 per cent where the estate passes to anyone other than a close relative. In France, rates can be as high as 60 per cent, and buyers may find they can't stipulate who inherits their property. It is even possible for a property overseas to be taxed twice – in the Scotland and abroad.


Be Sceptical

Buying a new property can be exciting but you must remain sceptical. Don't be fooled by claims of huge capital growth and rental yields when viewing a property. A property is a place to live, not an investment. Before deciding whether it is a good buy, factor in the likely costs of maintaining the place and get to know the area. Take the time to view properties in person too rather than getting serious about properties as seen from your laptop in UK. If it sounds too good to be true, it probably is.


Useful Contacts


Judicare Group
Simon James House,
17 Mill Lane, Welwyn,
Herts AL6 9EU
Tel: +44 (0) 1438 841 293
admin@judicaregroup.com

Association of International Property Professionals Clements House,
27-28 Clements Lane,
London,
EC4N 7AE.
Tel: +44 (0) 20 3207 9095

National Association of Estate Agents
Arbon House
6 Tournament Court
Edgehill Drive
Warwick
Warwickshire
CV34 6LG
Tel: +44 (0) 1926 496800

PompeyPete

Also read this current thread from an expats forum in Paphos:

http://www.cyprusliving.org/phpbb/nfphpbb/viewtopic.php?t=32347

millym

One bloke's experience of buying property there...

https://forums.moneysavingexpert.com/discussion/2792830

ninjapoundit5

Property speculating in war torn countries. Pure class. :money:

How about some shares in Assad Corp? :T

tyllwyd

I assume that in theory it is perfectly possible to chase money that is owed to you through the courts in Egypt - but in practice, is that something you could realistically do? So personally I wouldn't invest any money that you can't afford to lose.

zappahey

ninjapoundit5 wrote: »

Property speculating in war torn countries. Pure class. :money:

Contrarian investing

bendix

I'm looking at Somalia and Afghanisation. But not residential property in the latter - just prisons.

Any thoughts?

mgsteveb

Do not, under any curcumstances invest in Hurghada

Running_Horse

What languages do you speak?

skintandscared_2

My friend owns an apartment in Sharm El Sheikh, near Nabq. It's fantastic and we've been there 3 times in all now. Most of the apartments are owned by British people and rented out. They were built, and are managed, by Egyptian Experience. They have also built complexes in Luxor and Cairo and I believe they are building one in Hagarda. The one you mention does sound very cheap though. My friend's is a 2 bed apartment and is worth about £45k now. Check the local taxes and the annual maintenance charges. Oh, and that the apartment has air con!