10 Hot Tips for Buying Property in Egypt
People from Europe and the UK are increasingly interesting in purchasing property in Egypt for a number of reasons including a holiday home for enjoyment or simply as a pure investment for good capital growth and rental returns. If you are considering investing in Egypt property or know someone who is then here are 10 good tips that you should know.
1. Bi-lingual lawyer
Your purchase contract should be in both English and Arabic so use an independent lawyer who speaks both and checks everything very carefully. Legal fees will vary and tend to be around one percent of the purchase price – its best to agree them beforehand. You will also have to pay 2.5 percent in government fees.
2. Registry and ownership
Egypt’s property registry is out of date so check that the land your property is on is registered but getting hold of title deeds in Egypt can take time and even prove impossible. Property is bought freehold in Egypt, except for in Sinai, which includes Sharm el Sheikh, where you buy with a 99-year leasehold.
3. Water and power
Many of the developments along the Red Sea use desalinated water, which can be expensive. Some developments have their own generators, so again costs need to be checked out.
4. Resale market?
Egypt doesn’t have an established resell property market. It is highly likely you will be buying Egypt investment property off-plan property, so don’t have high expectations of selling it on quickly for a quick profit. Think mid to long term.
5. No taxes
As a non-resident owner in Egypt, you are not liable for inheritance, income, capital gains and corporation taxes there. Of course, as a UK resident you are liable under tax laws for all your worldwide assets and incomes.
6. Growing mortgage market
Mortgage products, if limited, only recently became available in Egypt after the government changed the laws to attract more foreign investors. There is also a drive to encourage overseas lenders to offer products there. Contact www.think-egypt.com for more details.
7. Visas for home-owners
To encourage residential tourism, Egypt is becoming more flexible with its visa options for foreign property owners. Three-month visas available at the airport must be extended to six months to allow you to buy in Egypt. And longer-term visas, usually lasting up to a year, are now available to property owners. Your lawyer will have details.
8. Beware build quality
The quality of construction varies tremendously throughout Egypt, a country prone to earth tremors and where building standards are lower than the in the UK. If you’re thinking of buying in a high-rise block, a survey done by a structural engineer is advisable.
9. Safe as houses
Modern developments are built with safety in mind and developers are conscious of the need to present a visible degree of security. Many developments are now gated and have guards at the entrance to keep the place secure and private for the owners of guests.
10. Short-term rentals
The short-term rental market is a major draw. However, don’t rely on the developer to let out your property. It’s best to have property on an established resort supported by a well-known hotel, so you’ll get the advantage of the services, facilities, staff and restaurants. Or opt for a property with rental guarantee – there will be more rules and restrictions, but at least you will have piece of mind.
If you are considering property for sale abroad in Egypt or any other country then these are a few of the tips and questions that you should ask yourself.