Funding purchase in Egypt

Decadent_Fool

Morning all,

I've seen an apartment I'd like to buy, yet have no experience of mortgaging for properties abroad.

I'm hoping someone here can offer some advice, or recommend a lender. Many thanks in advance

WildHaggis

Its a very tricky area, with lots of compliance issues.

Risks for you - what currency are you looking to mortgage in? what currency are the rental returns (if any), and what currency are your earnings. There are specialised brokers, they often charge a 500Euro fee for arranging your mortgage.

Most countries work on affordability (40% of your gross income is available to pay all of your credit - home mortgage, loans, new mortgage, car loan, etc) But, not all.

If you have a UK properrty, it may be easier, and cheaper, to buy the apartment outright, and then to pay back a UK mortgage with sterling earnings. This does put your main home at risk though...

More qustions : Buy-to-let, or just a holiday pad? Have you investigated the legal arena in use in Egypt? Is there any resale demand? Can you buy the same apratment from a reseller for less than the developer wants? What title is the apartment - shares in a company, share of freehold, sectional tilte. etc etc. What are the running costs, annual maintenance charges, and what are they lilely to change to in ten years time, when the complex is looking a litlte tired. what are the rest of the owners like, and are you happy to return to see them every year/every month?

And, imho, the calculations I have done over the years - it's cheaper to fund a holiday every year than to fund the running costs of a second home. every time. <excludes capital appreciation>

Mr_helpful

I wasnt aware that you can get a mortgage in Egypt. I think you may have to fund it from over here

Decadent_Fool

Thankyou both for replying

I now anticipate funding the property through a remortgage of my home here, with rental fees to be in sterling as I'd rent it to Brits.

I'm buying off plan, although the main structure is up and I've had a good look on the internet for a bit of background; I'll now more when I get back from visiting on the 22nd!