Buy your dream home in Egypt!
Buying property in Egypt is a straightforward affair provided you employ a lawyer to sort out an otherwise complex system of property registration.
Foreign purchasers have the right to own real estate and land in Egypt. Today the government recognizes the great value foreign investors in property have for the success of the economy and have set about actively encouraging overseas buyers to Egypt. New laws have been established to make the Egyptian property purchase procedure more secure. For example, the government can no longer impound or nationalize any property they wish – a practice that stood for centuries. These changes, along with a few others, are increasing confidence amongst overseas buyers.
1. Make your choice! You will have to choose a property first and here you can use the help of our overseas consultants. Our agents will be glad to help you with your choice as well as to give you professional advice.
2. Make a reservation! Once you decide on a property, you will need to pay a reservation deposit to take the property off the market while contracts are drawn up.
3. Find a lawyer! Lawyers in Egypt will normally speak English and will be able to produce your necessary paperwork in Arabic, as required by all the authorities. Egypt has many complex real estate registration issues so it is critical to have a lawyer conduct the appropriate searches and provide you with legal advice regarding the purchase.
Local lawyers will also help you through the best way to conduct business with the local people who have their own particular idiosyncrasies and customs which are important to be aware of.
4. Take care of all Fees and Taxes! There are some taxes that you will have to pay around a property purchase in Egypt. They are as follows:
- Property registration and legal fees for conveyance total around 6%.
- Stamp Duty on property is payable by the buyer at 3%. The buyer will also pay a small inspection and measurement fee (approx. 65 euros).
- Tax on any form of income from property runs at 20 to 22% and is basically the alternative to Value Added Tax. Many countries enjoy a double taxation treaty with Egypt.
- Egypt levies no inheritance or capital gains taxes.
5. Property Registration. Most Egyptian properties are not registered, even though registration is an essential pre-requisite to a purchase. Therefore the lawyer’s assistance in liaising with the Real Estate Registration Office in Egypt is essential in order to ensure the property is duly registered and prepared for foreign purchase. Registration can take up to four months. After inspections and payment of taxes/fees, you will finally obtain a new title from the Registry.
Red Sea Pharaoh Development Hurghada, Egypt
An excellent choice for anyone wanting to live right in the heart of Hurghada, with all of the town’s facilities right on your doorstep, and all at very affordable prices.Red Sea Pharaoh is a small, intimate development that will appeal to anyone looking for a friendly and personal touch – more like a club than a vast and faceless resort.
Dreams Development Hurghada, Egypt
Hurghada Dreams is a brand new gated development of hotel-style apartments (one & two bedrooms), commercial units and extensive facilities. The project is located centrally in Hurghada in a strategic location between downtown and newtown.This project presents a unique opportunity to invest in Egypt’s rapidly emerging property market.
Water House townhouses Hurghada, Egypt
Water House is a totally unique project to Hurghada that is designed by Europeans, for Europeans. It gives buyers the very best of both worlds – all of the comforts of a world class resort including its own private beach, beautiful landscaped gardens and three enormous swimming pools.
Bagging a bargain in Bulgaria: It’s a tough market but investors prepared to pay now will reap the rewards later
www.dailymail.co.uk, 28.05.09, excerpt
Carl Froch, the World Boxing Council super middleweight champion, is finding investing in overseas property just as satisfying as delivering a well-placed left hook. And it may turn out to be almost as lucrative.
‘What is the point of having money in the bank which is earning nothing?’ says Froch, 31, who lives in Nottingham. ‘I have been investing between 8,800 GBP and 44,000 GBP in property in Bulgaria and Turkey over the past 12 months.’
He’s put his money into small apartments, which he intends to rent out to locals rather than holidaymakers, and a suite in an ‘apart-hotel’, which he hopes will have a good return.
‘This sort of investment is perfect for someone like me who gets lumps of money in dribs and drabs,’ he says. ‘I see the properties as my pension as I don’t have other savings.’
Joe Upchurch, managing director of Aston Lloyd, from whom Froch has bought his properties, is a boxing fan. He has also sold an apartment to Joe Calzaghe, one of Froch’s heroes.
‘Upchurch is very experienced and knowledgeable and I trust his advice completely.
‘It’s all about timing,’ he says, and as a boxer, he should know.
Carl isn’t worried about negative comments about the Bulgarian property market:
‘That mostly relates to the south-eastern coast, which is like the Costa del Sol. I have invested in Kostinbrod, which is 15 minutes from the capital of Sofia.
‘This is an up-and-coming business district and the whole area is being revitalised. I am confident I will get a guaranteed income for the rest of my life, as well as seeing the capital value increase too.’
Reports show an 8.4 per cent increase in tourist revenue in 2008, with demand from foreign visitors and Bulgarian nationals expected to remain stable this year, backed by a government advertisement campaign worth the equivalent of 3.5million GBP to promote tourism.
Ross Elder, MD of holidaylettings.co.uk, says: ‘Inquiries for Bulgaria in the first quarter of 2009 are up 9 per cent. It’s a fantastic holiday option if you are seeking value for money on accommodation, flights and food.’
Many people piled into Bulgaria in the boom seeking a quick buck, only to go belly up.
But there’s still income and growth to be had if buyers do their ground work, on the developer as well as the property, take independent legal advice and buy good-quality property in the right area.
Overseas property consultant, Simon Conn, adds: ‘In good city locations, such as Sofia and the better-quality coastal developments, there are long-term possibilities.’
Buyers guide – Italian properties
Off Plan properties
Buying an off plan property in Italy is nice and simple. There isn’t a stack of paperwork to sign like France, and the tax laws are clear and attractive for investment.
To calculate the purchasing costs, you need to divide the process in the “Front end” and the “Back end”
At the front end how much you pay when you sign your preliminary contract will depend on the payment terms of the developer. For example you may have 50% upfront and then 50% on completion, or 30% upfront and 70% on completion.
In most cases you will have to pay a solicitors fee upon signing the preliminary contract which can be anywhere between 1% and 3%, depending on the solicitor. If you are paying a solicitor who is not an expert in Italian Property it is likely to cost you a lot more because he or she will need to spend more time researching to make sure your title is clean. It is also wise to use a solicitor who speaks your native language.
Under Italian law if a developer is building off plan they need to provide the customer with an Insurance Bond or Bank Guarantee for their initial deposit. If the builder should go bankrupt this insurance bond covers the full amount of the deposit.
When you pay your deposit upon signing the preliminary contract your money should be held in the solicitors Escrow account, until you receive a copy of your bond.
All banks and insurance companies in Italy are guaranteed by the Central Bank and so if the particular company who has provided your bond goes bankrupt it is insured by the Central Bank of Italy. What this means essentially is your risk is much lower as you cannot loose your money should the builder be bankrupt.
Before you reach the “Back end” ie. before your property is completed and you can move in, you also have the option of selling the property, as long as the developer does not prohibit this in the preliminary contract.
From an investment point of view this can be very profitable.
Firstly if you sell before completion you are not required to pay VAT, which in Italy amounts to 10%, the notary fee which is in the region of 2%, and two other small Italian taxes which come just under €400.
In Italy there is no capital gains tax if you sell before completion, but should you be a resident of the UK or Ireland those governments require you to declare any income you make abroad.
If you intend to sell your property before completion, it is also wise to have an avenue to sell it through. For example will the developer resell it for you? And how does the developer intend to do that? If there is a high supply in the market it may be more difficult to sell your property. For example in Northern Italy the market is more mature so it would be more difficult to ‘flip’ a property then the emerging southern market.
On completion of your property you are required to pay the ‘closing costs’ mentioned above. You are required to pay 10% VAT of the purchase price of the property, alongside a notary fee and two other small Italian taxes which will amount to roughly 2%.
The notary is a legal body in Italy nominated to complete all the legal details in a completion of sale. The fee however is not a standard 2%, it will often come down to the purchase price of the property. For example if you are purchasing a Villa for €500,000 the fee will be lower then 2%, as €10,000 is too much to pay a notary for a single property transaction.
Should you decide to sell your property within 5 years of it being completed you a required to pay 12.5% capital gains tax to the Italian government. If you sell it after that 5 years, currently there is no Capital Gains Tax.
There is a dual taxation agreement between the UK and Italy, and The Republic of Ireland and Italy which means in your country of residence you are required to pay the balance between the varying tax rates. For example if the rate was 20% in Ireland you would have to pay the extra 7.5% in Ireland when you declare your income.
There is also no inheritance tax on property in Italy. The particular law relating to this is called ‘Uso Fruto’. For example if you put your sons name on your title deeds along with your own, he does not have claim to the rents generated or he cannot sell the property from under you; however if you die the property is passed straight on to your son tax free, as his name is already on the deeds.
Overall the risks in purchasing off plan in Italy are very low because your money is insured; so in comparison to many of the other markets in Europe it is a much safer bet. Usually the financial return on Off Plan property compensates for the risk involved in purchasing something you cannot see and touch yet. In Italy the risks are far lower then a country that may not have an insurance bond or bank guarantee as law; with the main benefit to the buyer being that the potential returns are not affected by this reduction in risk, which makes it a better investment overall.
Why Invest in Italian property?
Italy is an enchanting country of colour and contrast. Magnificent architecture, great food and wine, inspiring arts, classic hilltop towns all continue to entice visitors every year…
Natural And Cultural Factors
- Abundance of culture, history and magnificent architecture.
- Stunning variation in natural beauty, from lakes, mountains and lush vegetation to rugged or sandy beaches.
- Warm Mediterranean climate.
- Recreational activities to cater for all needs, from skiing, hiking or beach holidays to sightseeing and cultural activities.
- Dream lifestyle, modern systems and friendly people make Italy an easy relocation destination.
Economic Factors
- No capital gains tax on profits from Italian property, creating maximum returns on investment.
- Possibility to cut purchase costs in half by becoming a resident.
- Prices remain relatively low, compared to many EU destinations.
- Capital growth of 20% per year in some locations. Many new markets in Italy still remain undiscovered and ripe for investment.
- Possibility to renovate beautiful old Italian houses into fabulous residences that earn high rent in peak season.
- Italy is at the hub of the low cost flights revolution, forever enhancing its strong tourist industry.
- The Italian government offers investors grants to reform rural.
- Italy has pioneered property tax reforms, offering great opportunities for the rural renovator, including substantial VAT discounts.
- EU member country.
- Economic and political security.
- Only 2 ¼ hours direct flying time from UK.
Summary
Italy’s booming and ever expanding tourist industry is a clear indicator of a healthy investment climate. Latest price rises in key locations of Italy were around 22% last year while Italian property remains relatively cheap compared with many other EU countries.
Flying to Italy has been revolutionized by budget airlines, so wherever you choose to invest, your property will be readily accessible. Variety in property type and prices are an added advantage, making Italy an ideal investment for a second or holiday home destination. A gradual move away from the more popular destinations towards some more hidden investment hotspots is the current trend while today property in southern regions such as Calabria is well regarded as a highly promising investment.
We would like to thank you for all your support
Hi Elizabeth and Ivan,
We would like to thank you for all your support throughout the buying process of our property in Bulgaria.
Your helpful and reliable approach has made the experience of buying run smoothly and we feel that with your guidance and advice we have chosen the right property for us.
We chose to buy a property in need of renovation and were pleasantly surprised by the high standards of workmanship that have gone into the house.
You have kept us updated throughout and we will again use your services in the future.We regard you as friends and would highly recommend your services to others,we could not have done this without you.
Thank you very much and we will see you soon,
Sylvia and Steve Morris
Stoke on Trent.
Sylv and Steve's house
Pictures of Steve and Sylvia with Elizabeth at the office in Sofia
Land prices fell 30% in some areas of Sofia
The economic crisis has affected long term investment and construction plans in Sofia and the surrounding area, affecting the market, causing a slump in value of up to 30 per cent in some regions, according to sofiaecho.com
Given the actual location of the parcel, price deviation varies. The southern boroughs of Sofia, or the ‘elite’ boroughs, Dragalevtsi, Boyana and Simeonovo, have traditionally maintained higher values through higher demand and thus registered a smaller drop, amounting to 10 per cent. The situation, however, is considerably more precarious in areas like Vrazhdebna and Bojourishte. Locations around the Sofia circular road, around Krivina and the area between Hemus and Trakia motorways, where before the crisis land could be purchased for 120-150 euro for a sq m, now see values of as little as 70 to 80 euro per sq m.
According to surveys from different real estate companies, demand for real estate in and around Sofia is currently next to nothing. When mortgage crediting is restored to pre-crisis levels and people are able to afford buying a house, only then can we expect an upsurge in business.
Parcels are a peculiar segment, as they can be used either for development or long term investments. In the first instance, the active party are supposed to be the construction companies, but given the contemporary market conditions, they are in a bad state. The latter case – long term investment – currently, simply doesn’t exist.
The source this material was taken is: http://sofiaecho.com/2009/04/10/703556_land-prices-fell-30-in-some-areas-of-sofia-in-2008–report
Property Management Services
MAIN SERVICES
Management & Maintenance – EUR 300
EXCEL PROPERTY recommends the service Management & Maintenance for all owners of holiday homes and properties in Bulgaria.
We will look after and keep your property in good order at any time:
- Company accounts management
- Payment of Bills and Taxes of any kind related to your property
- Mail collection
- Pictures of the property – we can send you pictures of your property once a month
Management & Maintenance + (Plus) – EUR 450
Additionally to Management & Maintenance package we are able to provide:
- Cleaning and Ventilation of your property – once a month
- Gardening – your house will be visited once a month by a gardener (the standard service is for garden up-to 1000 sq.m. If your garden is bigger you will be quoted individually)
Management & Letting – EUR 500
This service that EXCEL PROPERTY offers is in addition to Property Management service and includes everything that is needed to advertise, maintain and to rent out your property. Our team can also meet your guests at the airport.
Letting – 15%
We charge 15% commission of the gross rental income or pay fixed rental price to the property owner when we rent out your property on short-term bases (1-29days of stay) or 50% of the first monthly rental when we find a long-term tenant.
Accountancy & Tax return – EUR 150
Provided that the company is stand-by i.g. the company does not trade and is used only for the purchase of the property we will arrange the preparation of the company annual accounts by an accountant, and the submitting to the annual tax returns to the tax office.
Important: Properties located outside the towns/resorts where our local office or representatives are, will be charged additional at EUR 0.25 per kilometer for covering the transportation costs.
OTHER SERVICES:
- Insurance – We can recommend and arrange home insurance for you which will guarantee you that your home is covered in case of disaster, etc.
- Security – options for Security System Installations.
- Cleaning & Laundry – Partners form qualified cleaning company are providing professional cleaning and laundry services after ordering in advance
- Repairs & Refurbishing – If required we can help you with plumber, electrician, house-painter, builder etc.
- Furnishing – Our exclusive partner from EUROMEBEL Ltd, one of the leading furniture companies in Bulgaria, will prepare for you an individual project for furnishing your home with traditional or modern furniture.
- Transport – We provide transportation services to our guests from any place in Bulgaria, from the borders of the airports to the resorts, cities, towns, villages where your properties are located.
Living in rural Bulgaria and one idea for running a rural tourism
This article is just giving an idea to those who intend to relocate in rural Bulgaria (or already did that).
Pic: Evgeni Dinev
I know that many foreigners like the rural life; many are tired of the rush in the big city. And many have decided to choose Bulgaria. But is it possible to gain money from living in a village where the unemployment is high by offering rural tourism?
I would say: Why not.
I will give you an example with me. I live in the big city; I am tired of the traffic, of the rush to be at a certain place at the exact moment. Every day I am in a hurry to go to work, but before that someone has to drop the kid to school then after work to pick from school, then to go to the swimming pool or dancing classes or birthday party or something else has to be done (there’s always something else). Just imagine there are two kids!!! The hurry is double. And 90% of those who live in a city are just like me!
So, from time to time obviously I need a rest. What do you think I’d choose for the weekend? – I’d love to go somewhere deep in the country, where there are no cars, no traffic lights. It would be great to be in the middle of nowhere and listen to the silence. That’s fine for me but that’s boring for the children.
And here comes my idea for the English speaking villagers – what would be great for my family:
1. I would enjoy B&B in a nice and quiet area
2. It would be great for the children to practice their English
3. It would be great if someone tell me where to go for a walk, perhaps to visit the nearby caves, springs and waterfalls, hunting and fishing, mountaineering, picking forest products and medical herbs and many other recreational and entertaining activities.
4. It would be great for the children if there is a small tent in the garden where they can play and pretend to be somewhere else – far from the parents.
5. It would be great both for children and adults if a ride on a donkey is offered (or a horse). I just imagine how fun it will be!!! The kids that live in a city can see a donkey only on a picture or in the zoo.
6. How about if I am offered to milk a goat? Or to pick vegetables from the garden and make a salad? I would be interested in agricultural activities involved in the everyday works of the farm.
Now I need offers. I feel excited of my own idea. I’m going to ask Google is there a nice place for me and my family? A place where we can ride a donkey…
Free viewing trip for all holiday apartment buyers
Why should I invest in holiday apartment in a moment of crisis? Why now?
There is a very popular interpretation of the Chinese character of “CRISIS” as a combination of two other characters. The first means “DANGER” and the other “OPPORTUNITY”. This is exactly how we can describe the present situation in Bulgaria. Every difficult moment appears to be a crucial point for everybody and a big opportunity for those who have the courage to make investments.
If you are one of these clever people and you have considered a purchase of a property in Bulgaria we can assure you that you have chosen the perfect moment. The prices of holiday apartments are falling down and time for investments has come. It appears that because of the investment rush of the last few years some properties have been overpriced. These are the middle-class properties, whose prices are reduced now. This is good news for a lot of people who have always wanted to have a holiday apartment in Bulgaria and for all the others who are looking for an investment. A lot of developers are trying to attract buyers of seaside apartments before the summer season has started. Similar is the situation with properties in winter resorts. To make the long story short I will have to say that the key words of the holiday property market this spring are promotions, reduced prices, and better payment conditions.
We – the team of Excel Property have always tried to help our customers in any possible ways. It is very important for us to keep you well informed of all new tendencies and to help and support you in any situation. This is why Excel Property is offering an exclusive Spring Promotion for all holiday property buyers. In order to make it easier for you we are inviting you on a Free viewing trip until the end of May. Everyone who comes over to Bulgaria up to 31 May and decides to purchase a property during his viewing trip will receive €250 per person capital return (up to €500). This means that if you are really interested in holiday properties you can not only buy one with reduced price, but will also save money for the viewing trip.
You don’t have to hesitate! Contact one of the brokers of Excel Property, who will help you organize your viewing trip and guide you through the whole purchase process.
In the section bellow you can see some of the cheapest seaside apartments as an example of the article!
Sandy Pines apartments are only 250 meters away from the award winning blue flag beach! It is within easy walking distance of popular bars, restaurants and casinos…There is a new promotional price of the fully furnished apartments is… Prices start from € 25.200… See more
Sunny House village – a charming place with fascinating beautiful sea panorama, easy access to key roads and social services. The village consists of 4 luxury villas on 4 floors with total 64 apartments, offers wide range of facilities and ameneties… Prices start from € 24.336… See more
We would like to say a massive thank you!
May 20th, 2009 Posted by Lana in Customer comments
We would like to say a massive thank you to Lana and the fantastic team from the Elhovo Office for making the process of buying a house a very pleasurable experience. We were well supported in step of the process and all the necessary procedures were well explained fully and professionally carried out. They put themselves out to provide extra information above what was needed and gave very useful, friendly advice at all times. We know we have made the right decision on the house we have purchased thanks to Excel.
After spending two very enjoyable weekends in their company we now see them as friends rather than estate Agents. We would highly recommend anyone to use their services and we are looking forward to working with them in the future. We have choose them to renovate our home for us because we have seen there high standards of workmanship and are very pleased with it.
A very big thank you once again and we can’t wait to invite them to the barbecue especially if Ivans brings his red wine!
Vince and Nicky
Nicky and Vince
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