The overseas property industry is in my opinion, a minefield and somewhere people looking to buy a property need to feel they can place 100% trust in the agent they have contacted and that agent needs to know what they are doing. After-all, they say buying a home is the most stressful thing any of us will do in our lives;  well I think buying a home in a country where you don’t speak the language, don’t understand the laws and can’t jump in your car to go and see the property is even more stressful.

When the AIPP came along it promised to change the way the industry operated, it had a code of practice that all members had to abide by, and all sounded good.  However, you have to be a voluntary member therefore if an agent signs up to abide by this code of conduct, they are probably already working ethically.  It is the vast numbers of builders, land owners, developers, agents, advisor’s etc… that haven’t joined the AIPP that are still out there operating unethically and often damaging peoples lives.

Having sat on AIPP disciplinary boards I can speak first hand of the process and that process would work if it had more strength, they don’t have much ammunition in their arsenal if a member steps out of line or breaks the code of conduct.  They can suspend, ban or force a penalty payment on the member which won’t get people their money or property back, they need to be able to take proper legal action against that member on behalf of the complainant.

We have entered the AIPP awards over the past few years and have been successful in winning multiple awards, this is because we whole heartedly believe in trying to change this industry for the benefit of the people looking to buy a property overseas.  I have my concerns a minority of agents that join do so just for the AIPP badge and they think if they show this on their website/literature it will bring them business.  If they do breach the code they also know not much will be done about it so take the gamble that they will join, take the AIPP badge and carry on with bad practices.  I have had numerous phone calls and emails  from people complaining about the AIPP and all they have done when a complaint was made was ban or suspend the member and not actually provide a solution to the issue.  Until late last year I used to back the AIPP against these calls and emails, by saying “they do their best within the parameters that they have to work in and they don’t have much in the way of punishments, but are working on getting stronger”.  That was until I was forced to make a complaint of my own against a fellow member who I thought was misleading the public and I had already contacted the member direct on a number of occasions to point this out.

My complaint was against Rightmove Overseas, who wear the AIPP badge on it’s website and literature.  Now I have no complaint against Rightmove Overseas being members of the AIPP however, as members in my opinion must abide by the same code of conduct as other members.  My complaint was they were allowing agents (who were not AIPP members) to miss advertise properties on their portal and there was no warning made that some agents and therefore their properties were being advertised/sold by non AIPP members.  I contacted Rightmove Overseas on many occasions sending links to properties I knew were being miss advertised, each time I was told they would look into it and ensure the agent is warned.  On each occasion nothing happened, it came to the point I even put them in touch with the developer to prove the properties were being miss-sold.  This led to me having my properties switched off on Rightmove Overseas because I had complained and they were investigating, I couldn’t believe how blasé they were about the situation and the fact I was being penalised for complaining.

It was at this point I contacted the AIPP, and as a senior member, award winner and someone they call upon to sit on disciplinary boards I expected to be taken seriously, as I wouldn’t waste my valuable time on something I didn’t think was damaging the industry.  I sent several emails, asked if I had to make a formal complaint and also sent copies of the email from one developer stating the agent was in fact miss-selling.  Nothing, not even a reply; to say I was in shock is an understatement.

It was very close to the October 2011 A Place in The Sun exhibition so I agreed to speak to them in person and see if there was a way of resolving the issue.  I even gave an idea that Rightmove Overseas make it clear to the general public who visit their portals that not all their agents/properties are covered by the AIPP.  Again nothing, Professor Mark Sharp said he would come and speak to me on our stand when he wasn’t so busy, I saw him walk past many times but he didn’t come to discuss with me.

It was then I made the decision to leave the AIPP, because after all the hype and hard work put in to setting it up it wasn’t protecting the public at all and I felt angered that they weren’t doing enough to protect people or it’s members.  Before we joined the AIPP we were already working far above what they expected from members and we don’t need to pay to have a badge on our website to say we abide by a code of conduct all our clients leaving glowing testimonials show this.  This is not written out of any arrogance but out of frustration that just because someone has a badge on their website it is taken they act within certain rules when it isn’t true, you should earn that right not buy it.

What our industry needs is a regulatory body like the FSA and to work within the industry you HAVE to be a member, you don’t see an Independent Financial Advisor being asked if he wants to join the FSA, it is compulsory.  I know this industry is slightly different and we have people from all over the world to regulate, BUT if the AIPP have voluntary members from around the world why can’t they make it compulsory to be a member.  They would need to have stronger punishments and further changes to their way of working but this is the only way you will cleanse the Overseas Property Industry, as long as it is voluntary it won’t make a change.

These are my comments, if anyone wants to make their own comments please do so below, I think this is a serious issue and one that needs addressing ASAP.

Summer Breeze Phase 2

These properties are located on the Summer Breeze development situated a mere 450mtrs from the sweeping promenades which run parallel with the tranquil coastline of Akbuk.

A traditional fishing village and harbour with bundles of charm and various local amenities including; Supermarkets, Butchers, Bakers and Dentist etc all within walking distance.

Example Property (2 Bedroom Apartment)

Finished to an extremely high standard with a lounge, well appointed separate kitchen, 2 generously sized bedrooms, family bathroom and a generous terrace.

On-site facilities include; Swimming Pools, Cafe & Bar Area, fitness centre and well maintained landscaped gardens.

The International Airports of Bodrum and Izmir are 60 minutes and 90 minutes transfer time respectfully.

Purchase price £53,000 (complete with 2 year guaranteed rental)

Mortgage option

Here’s an example:  Capital and interest repayment mortgage of 50 per cent LTV (£26,500), with an interest rate of 6.60 per cent and a 20-year term – monthly payments would be £199.14.

PROPERTY VALUE £53,00

Deposit                                                                                   £1,000

1st Payment       30% after 30 days                             £15,900

Final Payment   70% (minus deposit)                       £36,100

On day of signing contract

Lawyer’s Fee                                                                      £500

Military Search                                                                 £500

On day of obtaining title deeds of property

Purchase Tax     @ 3.3 %                                                £1,749

Title Deed Transfer – Translator Fee                        £50

Water Connection                                                           £320

Electric Connection                                                        £200

Stamp Duty                                                                        £60

TOTAL PURCHASE COST                                              £56,379

Yearly Fees – Approx

Maintenance Fee                                                            £400

Contents Insurance                                                       £100

Earthquake Insurance                                                  £60

Council Tax                                                                       £75

TOTAL ANNUAL COSTS                                               £635

Rental income

This property has a guaranteed annual rental income of 5% (£2,650) based upon the nett property value for two years with no maintenance fees during this period (Normally £400).

For the first two years during the summer season the owner has an allocation of 4 weeks for their own personal use.

The Real Deal

Budget to have a total of £56,379 available to you via your savings and the 50% LTV mortgage.

(£26,500 / £26,500 respectively) to take ownership of this property.

During the first two years the annual running costs (£235) + mortgage payments (£2,389) will be taken care of via the guaranteed rental income of £2,650

When looking at Villas in Egypt, it is important that you start by doing your research to ensure you buy the correct Villa for you. A quick internet search will pull up 18,000,000 results for the search term “villas in egypt”, so where should you start off?

Well you need to consider several things when looking for Villas in Egypt, including:

1. Location
2. Requirements
3. Budget
4. Additional Costs
5. The Agent

1. Location

There are several locations where you could be looking to buy a villa in Egypt, whether it be Sahl Hasheesh, El Gouna, Hurghada, Luxor etc…  so you need to know where you will be focusing your property search in order to give yourself the best chance of finding the villa of your dreams. If you are seriously considering buying a Villa in Egypt then I would presume that you have visited the country, ideally several times, been to several different places in Egypt and your head and heart have settled on a location where you really wish to be investing your money. Afterall, buying abroad is a very big decision and purchasing a villa in egypt should not be rushed. Take your time, do your research… you will reap the rewards with your dream villa in the end.

So yes, the first thing you need to look at is the Location. As the property saying goes, its all about location, location, location. So if nothing else, it is a great excuse to go and top up on that sun tan just a little bit more before you make the plunge into buying the villa.

2. Requirements

So now you should know what area in Egypt you a buying a villa. Now you need to look at your requirements. Do you have a large family and are looking for a 4 or 5 bedroom Villa? Are you buying a villa in Egypt as an investment and want the best rental returns – then you need to know what rents out best – again, do your research. Will you need your villa to have parking spaces? Are you looking for a detached or semi detached? Do you need a private pool or garden. Are you looking for a Villa that comes with full rental and property management or not?

The requirements stage is where you really start to form a picture in your mind about what your ideal villa in egypt will consist of. Make a list of things that the villa – Must Have – Ideally have – Can’t haves. So for example your list could look something like this:

Must Have                                                Ideally                                               Can’t Have/be

3 bedrooms                                              4 bedrooms                                      Off Plan

Pool                                                            Parking                                               On a large complex

En-Suite Master bedroom                    Beach Front

Furnished

3. Budget

By now you should know where you want to buy your villa and what you are hoping to buy… the next thing to look at is just how much you are looking at spending. There is a common misconception that properties in Egypt can be picked up at next to nothing, and although it is true you can get some excellent properties that are value for money, you need to be realistic. 1. With what you can afford to spend AND 2. What you should be spending. If you are searching the internet and find a Villa for sale 4bedrooms, private pool, en-suite bathroom, on a complex, beachfront that can be picked up for the amazing price of just £50,000 then alarm bells should be ringing in your head and all the horror stories you have heard about buying abroad should hopefully stop you from making the same mistakes. Do your research, take your time… if it sounds too good to be true, then chances are, it is.

Now on the other hand, if that same villa is being offered at lets say £400,000 then you are probably on the right track, but still do your research. Whats’s that I hear you say? “£400,000 for a villa in Egypt? But I thought Egypt was cheap!!?” – Well imagine buying a Villa in Spain 4bedrooms, private pool, en-suite bathroom, on a complex, beachfront you are looking at well over £2,000,000 – So now £400,000 is sounding more like a bargain and certainly value for money when you consider it is a truely year round season and tourism levels are increasing and the country as a whole set to see major improvements and capital growth on the villa, where you could argue Spain has seen all of this already and any potential returns of capital increase will be minimul if any and the market is a crowded.

So if you do have a budget of £50,000 and are looking for this dream home beach front villa then it may be worth looking elsewhere, or maybe focus on getting a beach front apartment in Egypt instead of a villa? There is real value to be had when buying property in Egypt, but make sure that what you are buying is real value and not a nightmare waiting to happen. Do your research, beyond just google.

4. Additional Costs

As with every property purchase, when buying your villa in Egypt you need to consider additional costs and include these when buying considering your budget, here is a quick list of additional costs you might face:

• Solicitor fees – You are going to want to use an independant solicitor when buyinh your villa in Egypt. Costs will vary depending on who you choose, but ideally you need to be looking at a repuatable law firm, that specialises in Egyptian Property Law and if possible comes under your own countries law society. No doubt you will be offered the services of a local Egyptian solcitor who may charge less than half of other quotes, but when buying a property in Egypt, money spent on the best solicitor really is worth paying.
• Maintence Fees – These can be charged monthly or yearly and again, depending on where you buy your Villa, the charges will vary considerably. Make sure you know what you are paying for, what comes under the agreement, check with owners on the complex or in Villas by the same developers and check if they are happy with the service. You don’t want something that will not maintained if you are paying for it.
• Registration Fee – To have the Villa placed in your own name you are looking at the costs involved being a percentage of the property price (around 2-3%) and also legal fees involed. It is worth consulting with your solicitor with regards to the full process so you don’t go into your purchase uninformed.

• Furnishing your Egyptian property – If your villa comes furnished then this might not be a consideration, unless of course the style of the furniture is not to taste. Depending on the size of the Villa and the quality and amount of furniture you are looking for, the price can dramatically change. Have a look around at different furniture options to give you an idea of what you will be paying. Rivermead Global have our own furniture side of our business and if you do wish to furnish a Villa in Egypt with us, then let us know you read this blog and Quote VILLAPACKTEN to receive a 10% on a full furniture package.

5. The Agent

The final thing to consider is the agent that you choose to buy your Villa through…. Now before you roll your eyes and the words “here comes the sales pitch” even enter your mind then let me assure you this is not what is going to happen. Yes, Rivermead Global are an Agent. Yes, we do sell Villas in Egypt. Yes, we do believe we are very good at what we do, the best in fact. BUT… there are a lot of very repuatable agents out there that would be able to assist you in your search for a Villa and as a company, we specialise in the areas of Hurghada, Sahl Hasheesh and El Gouna when it comes to property in Egypt, so if you none of these locations came are on your radar after point 1. “Location” – Then we are not the agent for you, and that is fine. You still need to make sure that you choose the right agent however.

To do this, firstly, it is important to listen in great detail to the agent, read the information they send you about the properties and themselves, and here is the vital part… BELIEVE NONE OF IT!! Thats right, nothing at all. All agents, good or bad, will want to assist you in your purchase and they will of course either tell you the whole truth about themselves, their services and the property in question (Good Agent) or they can tell you a vague representation of the truth (bad agent). So listen to everything they say, but then do your own research. Join property forums, read testimonials, contact previosu buyers (ask the agent, they should have buyers who are happy to give real reviews), do your research both on and offline.

Again, finding the correct agent to work with is vital in the process, you want somebody independant that will be working with your best interests at heart and not one that just considers a quick sale and commission as priortity. Take your time with this, as they will be a real asset to your when searching for a property and will be able to point you in the right direction with regards, properties, solicitor, currency companies, rental companies, viewing trips, furniture… basically everything you need to know regarding your purchase. Provided the best service, pre, during and of course after the sale.

Thank you for taking the time to read this blog post, if you have any questions then please leave a comment or drop us an email, just visit the contact us page.

Tiba Towers 1 was the original and first completed Tiba Development, this is located just off Sheraton Road in Old Town Hurghada. However the more recent of the Tiba Developments that are being built, some already complete, are in the Al Ahyaa region of Hurghada. Currently compared to central Hurghada, Al Ahyaa is less developed. However there are already lots of things that point towards Al Ahyaa being a great place to be investing your money to see very strong returns over the next 5 years. There is a large shopping mall currently under construction that will house not only a large supermarket, but also small boutiques and many restaurants and food/drink areas. The infrastructure is being improved and many developments, such as the Tiba ones and Royal Beach due completion within 12-16months. As Al Ayhaa becomes the bridge between central Hurghada and El Gouna, capital growth and rental potential are both set to grow a great deal. There is a public beach just 5-7 minutes walk away from the Tiba developments.

Finish of the Tiba Developments

I have attached a few photographs of Tiba Towers 2 from when Rivermead Global where there in June (2 months before completion), though I think you need to see it in person to really appreciate the quality. You get UPVC windows, patio doors with mossie nets, all light fittings included, tiled bathroom and kitchen area, quality ceramic floor tiles and very good quality front and internal doors and wood work. There is also a communal roof terrace for residents to use. Have a look at the YouTube video we took in June (2 months before Tiba Towers 2 was complete) This will give you some indication of the quality of finish you can expect from the Tiba developments

Completion Dates of the Tiba Developments

There are several Tiba Developments currently under construction and others complete. Here is the current list of the developments and also the completion dates of each. However, as the Tiba projects are being put up quickly, already completion dates are being brought forward. For example, Tiba Heights is now looking at a December 2011 completion date.

Tiba Star – December 2012
Tiba Gardens – September 2012
Tiba Palace – June 2012
Tiba Heights – February 2012
Tiba Towers Two – Complete
Tiba Towers One – Complete

LATEST RELEASE – TIBA PARADISE – APRIL 2013

With prices starting from well under £10,000 for a studio in the Tiba Developments, it is no wonder they are selling so quickly. If you would like more information then please leave a comment or contact us by emailing info@rivermeadglobal.com or by calling 0161 652 5563

The 2.4 billion Egyptian pound all-cash deal will see Swedish-based Electrolux have a 52 percent stake that Olympic’s parent company Paradise Capital owned.

This is more good news for Egypt, which has seen other large investments including $4 billion from Saudi Arabia and $2 billion from the U.S. recently. The investments will support Egypt’s economy and boost the country’s tourism industry.

President and chief executive of Electrolux, Keith McLoughlin, believes the Egyptian market will return to its pre-uprising growth levels within 18-24 months. When asked by a Reuters journalist why Electrolux chose to invest in Egypt, he commented: “In terms of where the country’s going, the demographics, the growth, the increase in middle-class, we think the future’s bright and now is exactly the right time to make this decision, this acquisition.”

The increase of interest is set to encourage other investors, particularly property buyers who are recognising Egypt as a good place to invest in properties.

Real estate company Amer Group have recently set up two new companies in Egypt called Porto Pyramids and Porto Fayoum, which have a capital of 5 million Egyptian pounds and 10 million Egyptian pounds.

The recent investments will help Egypt form a stable and successful economy and with such a high interest from foreign investors, Egypt is set to have a very positive future. Keith McLoughlin comments: “We think there will be some turbulence, some bumps on the road, as the constitution gets established, as parliamentary and presidential elections occur. We think that’s natural in the formation of democracy.”

Source: Reuters

Airline EasyJet has just introduced its summer flights schedule which includes two flights a week to Hurghada International Airport from Gatwick on Mondays and Fridays.

The schedule has shown Hurghada flights are in demand and the recent Egyptian uprising has not put people off. This is mainly due to Hurghada not been effected by the recent revolution and business is running as usual.

Sharm el-Sheik’s high profile was due to the many international hotel brands investing in the area and large tour operators becoming attracted to the city.

Recent reports of shark attacks and the ex-president Mubarak taking up residency in Sharm el-Sheik, has seen the popular tourist destination lose its shine.

Now the attention has been turned to Hurghada, which is only 88km away from Sharm el-Sheik.

Hurghada, which is on the Egyptian mainland, is more traditional compared to its neighbour. The city centre, Dahar, has many shisha cafes, bazaars and markets.

Hurghada is in a good location and access to other cities on the mainland is relatively straight forward. Hurghada is only a three hour drive to Luxor and five hours to Cairo.

The area is not only becoming popular with the British but also Russians and eastern Europeans, creating a very vibrant city.

Along the coast of Hurghada there are many resorts which have become incredibly popular with property investors including Samra Bay Marina & Spa Resort and Royal Beach.

With many low entry projects becoming very popular with people looking for a value for money bolt hole in the sun, the company leading the way with these low entry developments are offering the Tiba family of developments, like Tiba Gardens, Tiba Star and Tiba Palace.

Another area that has become popular with property buyers is El Gouna. It is 22km north of Hurghada and has luxurious apartments, villas and upmarket hotels.

The pretty resort has its own man-made blue lagoons and has become known as the “Venice of Egypt”. The resort boasts a free cinema, international schools, two golf courses and two university satellites.

18km south of Hurghada’s airport is Sahl Hasheesh which was until recently a protected military zone. Now it is quickly becoming a luxurious place for boutique hotels, residential developments such as the Ocean Breeze, Sun Gate and Mamma Mia developments, which will all be situated on a 12km curved beach-lined bay.

Hurghada is attracting visitors who want to have a bit of culture tourism and some relaxing time by the sea. This is what is making Hurghada the top choice of places to visit by people who would have usually gone to Sharm el-Sheik.

Source: The Independent

Property experts have said Egypt’s economy will achieve strong and steady growth rates in the long term and will put Egypt in a good position amongst up and coming markets.

News agency Reuters revealed this week a Saudi developer has ensured to invest $7 billion to create 200,000 residential properties for low and middle-income Egyptian buyers.

The news agency also reported that the Kuwait Investment Authority (KIA) has opened a new company with a capital of $168 million to invest in Egypt property and commercial projects.

The news has shown Egypt is on track to recovery and the country’s positive factors remain appealing to foreign investments.

Chairman of the General Authority for Investment and Free Zones (GAIF), Osama Saleh, commented: “The aftermath of the 25 January revolution is expected to create more investment opportunities and launch a package of comprehensive long-term economic reforms enabling the Egyptian economy to register an average annual growth rate of 5% in the long term.”

Property analysts have said Egypt’s real estate industry need to concentrate on tourist houses and middle-income properties to secure long term survival.

Agents have reported an increase of interest from overseas investors, particularly in the Red Sea resorts of Hurghada and Sharm el-Sheikh.

The decrease in the Egyptian pound has seen many buyers look at desirable properties that are reasonably priced, knowing in the future the investment will be worthwhile when the Egyptian pound rises again.

Source: Reuters & Menafm.com



The Supreme Council of the Armed Forces, which took power after Mubarak’s step down, stated the emergency laws that have restricted political life for years would be lifted before the elections take place.

There has been no date announced as to what day this will happen, but a new approved law will reduce restrictions on political party formation.

Reform groups have asked the military to lengthen the time the elections are due to take place, to let political life in Egypt recuperate after years of oppression.

Political scientist Mustapha al-Sayyid commented on the election announcement: “It is a challenge for the new forces that came up as a result of the revolution. This period is relatively short for these parties.”

The decision has come after the mass majority of Egyptians voted in favour of the amendments, which promised judicial supervision of elections and setting the president’s term limits to two four-year terms.

Leader of the newly licensed Wasat Party (Centre Party), Abou Elela Mady, commented: “The time is short but we will work with all our capacities to take part. It doesn’t give us a full opportunity but it is a good start.”

Islamist group The Muslim Brotherhood, who were barred under Hosni Mubarak’s ruling, has surfaced as the most organised political group. Other newly formed groups are in the process of organising.

The elections are a major signpost on the path set by the military, in a move that will end in the army handing over power to an elected government.

A date for the presidential election will be decided after the government elections take place.

Source: Reuters

The referendum has split opinion amongst the Egyptians. Some have said the planned reforms are unsatisfactory, yet the majority of Egyptians are happy with the amendments.

The outcome has been received as good news to economists, who see this as a positive step towards democracy and a free economy.

The changes to the referendum:

• A president will be limited to two four-year terms and will have to assign a vice president with 60 days of being in office.
• Elections will have judicial supervision, any state of emergency must be approved and can vote against the president’s right to use military courts.
• No longer the need of a voting card that so many Egyptians did not possess. Instead they can now vote with their National ID cards if they are over 18 years old.

There were over 54,000 polling stations allowing up to 45 million people to vote in the referendum. The referendum board stated the polling stations were all over Egypt and were observed by 17,000 judges.

This resulted in a very positive turnout. Many Egyptians had the opportunity to vote for the very first time, as the previous special voting card was abandoned and any person over 18 could cast a vote using just the National ID card.

The outcomes:

• As the people voted for the amendments to go ahead, elections in parliament may take place as early as late September.
• If the Egyptians had voted against the amendments, Egypt’s military council would have granted a constitutional decree until parliamentary and presidential ballot.
• If this had happened, elections would have been pushed back to early next year and Egypt’s army would stay in control until the elections took place.

Who is against the amendments?

• Presidential candidate Amr Moussa, who is currently the secretary-general at Arab League, disagrees with the changes and believes conducting a new constitution is the answer.
• Another presidential candidate called Mohamed ElBaradei believes the amendments could take Egypt’s electoral reform in the “opposite direction”. He disagrees with the proposed amendments and was thought to be voting against them.
• The liberal nationalist Wafd party are against the plans, arguing the ideas to limit powers of the president are insufficient.

Who is in favour of the amendments?

• The former ruling party lead by Mubarak, The National Democratic Party, has voted in favour of them.
• The largest party in Egypt, the Muslim Brotherhood, agree with the plans. They want the country to start operating again and avoid the army ruling the country for a long time.
• A group called the Salafists believe the changes are positive and a step closer to a better functioning country. These Muslims have been subjected to cruel domination by Mubarak in the past.

Previous reports from Reuters suggest that this positive outcome to the referendum will lead to a quicker path to democracy and accelerate the economic and investment reforms.

Source: Reuters