Why Palme Royale Resort Hurghada Impressed Me

Palme Royale Resort in Hurghada is just announced in pre launch and will sell fast. Surprised to be reading this in this economic climate? Then read on.

With pleasant daytime temperatures of 28 to 30 degress C, it was a shock for me landing in the UK. It was cold. The cold like you remember in school shorts in winter.

I was not arriving in a ski resort. But UK in late October - just one degree centigrade and snow. The point is that Hurghada does what it says on the tin. Its like summer all year round. Where else can you go within 5 hours of most european capital cities and guarantee this weather?

Property Review Process

It is always thought provoking work for me reviewing a new development.  In the emerging markets of Hurghada and Sahl Hasheesh its not getting easier.  The property choice is getting larger. Finding long term safe value, as apposed to the cheapest, can seem like a huge challenge. However, there is a way that helps investors decide a lot faster than you can imagine.

I call it a Property Due Diligence Process and encompasses location anlaysis, legal, viewing, rental and support.

So again, I used this process when viewing properties. View it for free yourself in “What Everybody Ought To Know About Property Due Diligence”, free for all email subscribers to my newsletter.  The job of selecting the best properties is made a whole lot easier. You will avoid common mistakes. Mistakes such as automatically assuming that the cheapest gets the best rental yield.

Economic Growth. Not Recession.

OK, I know its hard to believe Egypt has such good prospects. But consider this; Finance Minister Youssef Boutros-Ghali has just announced predictions that the country’s growth will slow to 6% in the current fiscal year, after three years of more than 7% growth.

At a conference in Cairo on October 21st, Prime Minister Ahmed Nazif stated that the Egyptian banking system was in better shape than many other countries, due to the reforms of the previous years and a regulatory framework that has limited the amount of borrowing for Egyptian banks.

Many analysts agree with the view that the Egyptian banking sector might largely avoid the international turbulence. “The overall impact on the Egyptian banking sector will be limited, when compared to what is happening in other countries,” Reham El Desoki, senior economist at Beltone Financial, told Oxford Business Group. “There seems to be enough liquidity, and the inter-bank sector appears to be working.”

Occupancy Rates

With near 100% occupancy on beach front properties and with the World Travel and Tourism Council (WWTC) predicting a 5% tourism in Egypt in 2008. The latest forecast are for 14 million visitors in 2008. Trying to get a room in Hurghada tells the story.  Increasing room rates, from a low base, is now the result.

Lets also consider that with political stability and strong economic growth, the rapidly growing Egyptian middle classes are driving high occupancy. Sometimes you have to just look around.

I got chatting to a couple in the Marriott hotel. They were Egyptian. It turned out they were holidaying on their honeymoon. The new Egyptian middle class is growing fast. The very diverse nationalities of other guests is also apparent. Wealthy Middle Eastern visitors and a huge Eastern European and Russian holiday makers are fuelling much of the tourism growth here.

Rental Yield

I’ll leave detailed analysis for another time on rental yields. However, there is just one major point to consider when thinking about yield. That is year round occupancy.

Virtually every location proclaims its year round attractions. Except the reality is usually five peak weeks. Hurghada has all the usual summer peak times but has eight other major holiday weeks.

You don’t get these peaks week rentals to anywhere the same extent in Spain, Cyprus, Greece, Malta, Morocco, France or Italy. Why? The air and sea temperatures are not warm enough. You risk rain. Hurghada and The Red Sea Riviera may get a very light drizzle for 5 minutes once a year.

So renting in Hurghada you get October Half Term Holidays (two weeks), Christmas, New Year, February half Term holidays (two weeks), Easter, early May holidays. Think how this impacts on your rental. Hurghada at its coldest is January, followed by February. Permanent sunshine, 18 to 23 degrees. There is little competition to the Red Sea Riviera that covers all these times within five hours flight of most European Capital cities.

But its the sea temperature that impresses most. Its 25 degrees in the sea this week. At night it drops to 18 degrees. I see only a few Egyptians needing a jumper in the evening.

Anyhow I digress. Rental yield. If you buy the right property in the right development, the Net rental, after maintenance and fees, is highly likely to achieve 10%. 15% for the right property is realistic.

Why Palm Royale Resort?

Two major reasons…the Sea and the Design. Palme Royale is very close to Sea. At last, I found a front line resort that gives nearly every apartment owner a proper sea view. By designing the apartment blocks in a V shape it means every apartment gets a great view. There are no second line, second rate apartments just a few rear studios on each block.

North of Hurghada is flat as a pancake. Sea views are like gold dust.

Beach space is as hard to come by as a front line seat at your favourite show. You have to pay good money for it.

But I could mention why I was impressed with the builder, the international Swiss Hotel Chain for the on site hotel, the Spa, the Gardens. But I wont. Go to www.jet2letproperty.com for this.

Front line you no longer have to dream of. A pre launch 10% discount gives prices of €48,510 ($62,577 or £37,898 approx) for a 49m2 studio. That means the first investors, who want strong rental yields, will be best not leave enquiring long. Register at www.jet2letproperty.com for due diligence report and FAQ’s.

Palme Royale Resort is not just about its 5 star tag. Its about a private 340 metre private beach, sea view, design and rental. All this within ten minutes from the international airport.

What do you think of investing in Egypt? Is Hurghada the best place right now?

Your comments are welcome. If you found this useful please register for regular new posts to be sent straight to your inbox.

Why Is Vila Jardins dos Oceano The Best Buy In Cape Verde?

Quite simply the best in Santiago island has just got better with a special 15% discount on Vila Jardins dos Oceano until 30th October and just 15% down.

SPECIAL OFFER

15% Discount Until 30th October

€3,000 reservation (refunadable off final payment)

15% Down

85% On Completion

So Nothing To Pay Until Final Completion - June 2009

Contact Us Now To Meet The Developer.

Discover why we think Vila Jardins dos Oceano is the best investment in Cape Verde.

CNBC award winner for best development on Cape Verde. Front line development with two bedroom villas at just €299,999 and three bedroom villas at €369,999. 50% sold and will be the first on Santiago to be totally complete in July 2009.

With finance at 6.9% and close to future world heritage site, Cidade Velha, Vila Jardins dos Oceano is a property investment that makes sense for those for whom a smaller and exclusive, low density villa development is there.

Eleven of the Villas are detached, in their own plot (approx 400m2 - 500 m2), have their own private fresh water pool and are built right on the coast - all villas have stunning sea views.

The Villas are of the very best quality and in fact the 3 bed Villas are actually larger than some of the competiting front line 4 /5 beds Villas on Sal yet amazingly half the price!

The resort also boasts Cape Verde’s first Infinity pool (communal), 2 tennis courts, bar / restaurant and a small supermarket.

So with construction well under way obviously all the licenses are in place. CONTACT JET2LET PROPERTY for all the due diligence. Special Permission has been obtained to build right on the coast.

One front line villa available which is literally 10 metres from the sea!

There is a small town with real character just 5 minutes away. In addition the new golf course is on target to complete in 2010.

Why Santiago?

Santiago has spectacular scenery, existing infrastructure, excellent rental, excellent communications with the most flights and it has the culture.

Santiago island has the real tropical island feel and, for many, this makes it the most interesting island in the Cape Verde archipelago.

The infrastructure is far more advanced than Sal or Boavista, from water supply, to ports for shipping to labour supply (over 250,000 inhabitants) will mean that tourism will have the support it needs.

Real rental potential as front line villas with sea views are most in demand.

As a place to provide more than just a beach, with all year round climate, Santiago island is well worth investigating. Even better go out and see for yourself. Call +44(0)113 3131000 for relaxed no stress inspection tours.

You Don’t have to be Rich to own Overseas Property

Its no surprise that many buyers are looking at spending less on their overseas property. The average spend in 2007 was £100,000 approx. However, that is still far too much for many people as I can assure you that you can spend a lot less and get an all year round climate thrown in - read on.

Property or a car?

A recent enquiry of overseas property was wondering whether they could afford an overseas property. However it quickly became apparent that there was a way. We got chatting about cars and how people are buying smaller ones these days. Their current car a seven year old Toyota, that they were looking to replace, still did the job required of it and it was clear that there was a choice to be made.

As they were thinking of buying a nice new VW Golf costing around £20,000 / €25,000 / €35,000 they realised that by foregoing this luxury a miss for a few years, they could free up spare savings to spend on an overseas property - with no mortgage. They were happy to take a ten year view and in the meantime they reasoned that the property will give them far more enjoyment than a new car.

There are still quite a few countries you can buy new property for £20,000. You, like many, probably don’t know where to start and are uncertain of the risks involved.

Which country?

I market several developments in Hurghada area in Egypt. An area that really surprises my clients when they visit. The challenge is on to find anywhere else at these prices with this level of infrastructure and tourism within 4.5 hours flight of anywhere in Europe. Hot year round sunshine must be guaranteed and it must have existing tourist and business infrastructure.  Parts of Morocco may be in contention - but infrastructure on the coast is in its infancy and accessibility is patchy.

25% Shared Freehold Ownership - £12,500

An alternative to buying an outright property is to buy in a new scheme, which has won international property award called Meltimi Residences.

There are a limited number of off plan apartments available on Meltimi Residences, this award winning development in Gulluk, on the Bodrum Peninsula, Turkey with 25% shared freehold ownership and 5 year TAX FREE exit strategy. Just 15 minutes from Bodrum airport.

Here is the scheme - suitable for people looking for both an investment and a place in the sun at a fraction of the cost:

All apartments have sea views and construction well under way, with the project fully financed for completion.

Ownership: There are 4 shares per property and each has a 25% share of the freehold with the shareholders name on the Tapu (property deed). Owners can of course purchase more than one share and benefit from a higher potential return and personal use.

Personal Use: Each owner has a minimum of 12 weeks personal use per annum on a rotating calendar. The calendar ensures that each owner has a minimum of 2 weeks occupancy between July and August with the rest of their weeks spread throughout the year in 2 and 3 week blocks. Owners can of course rent out their properties direct or through the rental pool.

Exit Strategy: Unique to our offer is a 5 year exit strategy which provides owners with the benefit of an excellent ‘lifestyle’ or rental opportunity, 5 years capital appreciation and 0% capital gains tax under the current Turkish tax system. In the event that all shareholders are in agreement then this term can be extended or individual shares can be sold.

Prices: Prices start from £12,500 for a share in a 1 bedroom apartment and go up to £19,500 for a 3 bed apartment. Payments are made in stages through a secure escrow payments system ensuring security and peace of mind.

Most property in Turkey is bought for cash, and therefore the consequences of over exuberant lending and credit crunch fall out, apply to Turkey probably less than most countries.

So, be it Egypt or Turkey, being rich to buy overseas property is not a requirement.  The current climate may prove in hindsight the perfect time for those wanting to get in at low prices. Please register for more details and more articles like these and, wherever you are thinking to buy property, be sure to register for my free download “What Everybody Ought to Know About Property Due Diligence”

Crunch time for UK property market as 42% look to buy abroad in next two years

As the credit crunch takes its hold on British shores and the housing market senses an ever-increasing slowdown, more and more people are looking overseas for their property purchase. A new survey by Cater Allen Private Bank, part of the Santander Group who also recently purchased Bradford & Bingley’s branch network, has found that 2.3 million British people are already owners of a property overseas, with over 3 million people likely to buy abroad in the next two years.

With the UK credit crisis tightening its grip, high UK property prices and a worsening lending situation mean that Brits are finding it more and more difficult to purchase real estate in their own country, and are therefore looking elsewhere for both second homes and investment properties. It is this second category, however, that Cater Allen believes will be the most affected by the increasing crisis.

According to the survey, currently around 500,000 (less than 25%) of those buying overseas purchase for investment reasons but they are predicting that within the next two years, this figure will almost double to 42%. According to Steve Dawkins, Managing Director of Real Estate TV, the UK’s dedicated property channel, this is because property is becoming increasingly out of reach to many UK buyers:

“British buyers are becoming increasingly disillusioned with the market here in the UK and this has the knock-on effect of turning their thoughts to buying abroad instead. Overseas bargains become more appealing at times like this and people are beginning to realise that there is investment potential out there, it just may not currently be on their doorstep.”

Of those surveyed who said they were likely to buy abroad in the next two years, those over 45 years are the most likely - with 17% of this age group responding positively. The 18 to 34 age group is also likely to buy property abroad, with 10% of this age group surveyed looking to purchase overseas, spurred on by the problems hindering first time buyers here in the UK. Interestingly, 60% of this 10% will look to buy property purely as an investment showing that it is this age range that most recognises the good profit potential of foreign markets.

The effect of the current UK property market on the amount of people buying property abroad is further highlighted when Cater Allen looked regionally. Here, it was found that those living in London are the most likely to buy real estate overseas - with 10% currently owning such property - an interesting reflection on the effect of residing in the most expensive city in the UK and the third most expensive in the world (according to the Mercer Worldwide Cost of Living Survey 2008).

Given these findings and ever at the forefront of property programming, Real Estate TV are showing Uncharted Territory a series that allows viewers to discover new investment frontiers by taking them to places as far-flung as Romania’s Black Sea Coast, Fez in Morocco, Kerala in India, Placencia in Belize, and Buzios in Brazil. A behind the scenes look at property markets in less well known destinations, Uncharted Territory - presented by Juliet Morris - will help those interested in buying abroad in coming years to uncover a hidden gem of a destination, whether it be for use as a holiday home or for investment purposes.

For those interested specifically in buying overseas for investment - like the 42% uncovered by Cater Allen - Real Estate TV’s Next Big Thing series is essential viewing. Presenter Jo Sinnott visits up-and-coming destinations such as Abu Dhabi, Egypt, Ras al Khaimah and Ajman, Calabria and Cape Verde to look in depth at the reasons why these markets are set for property boom.

Watch Uncharted Territory on Real Estate TV Mondays at 9.30pm and Next Big Thing nightly at 8pm on Sky channels 262 and 263 and on demand at www.realestatetv.tv.

Vila Jardins do Oceano, Santiago

Before I review Vila Jardins dos Oceano, Santiago in Cape Verde island, lets look at what recent events mean for buying property in the Cape Verde islands.

Tourist diversification

Whilst sometimes I’m surprised the media don’t announce that the sun, against all odds, did in fact rise today, you could be forgiven in believing that no one is going on holiday or retire - or ever will again.

The reality is that some destinations will lose flights due to airline collapses. Recession worries are real, particularly for those in UK and Ireland. All these concerns highlight the need to buy where there is a well served international airport with many flights from many different destinations and that your visitors hail from many different countries.

One such place is Santiagio island in the Cape Verde archipelago off the west coast of Africa. As an ex Portugese colony it brings huge advantages compared to other destinations. There is a robust legal framework and there is a Portugese banking system actively approving mortgages for property investors.

Caribbean alternative

The advantages of Cape Verde islands are that you get much of what you like about the Caribbean, blue seas, all year round weather but also at a much lower cost of living than most of Europe and the USA.

Some property investors are looking ahead to Santiago island as an ideal place to live permanently or part of the year as a retirement destination. Santiago has an existing population and a mountainous and diversified landscape full of interest.

For European visitors you get around 5 hour flight time, no let lag and no hurricane season. Already most popular amongst German and Scandinavian visitors many flights are booked up well ahead. Santiago International airport is the main airport of the islands and has more flights from more cities than anywhere else.

Why Vila Jardins dos Oceano?

Its not often that I find a development that is low risk and such incredible value. All villas have sea views from their individual pool areas. Even the ones furthest away from the sea, 110 metres are closer than most other villas are from the sea.

Its low risk because:

1. the due diligence is all done
2. the first villas are less than six months from completion
3. final villas complete in July 2009.
4. CNBC AWARD: Best African Development

That’s right, completion July 2009. Many developments in the Cape Verde islands have ben very badly delayed. This is because they had not received the Cape Verde Investment authority approval, relevant planning permissions and/or proper land title.

Vila Jardin dos Oceano will be ready July 2009 and there will be no further building on the site.

Situated next to a soon to be assigned UNESCO world heritage site, I expect buyers of these villas will be amongst the most satisfied I have seen.

Prices

€239,000 for a 142.3 m2 net (including 64m2 of terraces) in a 431.3m2 plot to a

€399,000 188m2 villa (including 130.8m2 of terraces).

This compares to over €700,000 for comparable sized villas selling on Sal island and

Quality of construction and level of insulation is superior to anything else I have seen. The UK developers have impressive attention to detail so I recommend investors meet or speak to them personally before committing to fully understand why Vila Jardin do Oceano represents such good value.

So for a very low risk with high capital appreciation prospects, Vila Jardins do Oceano sets the Cape Verde standard. Call for full due diligence pack.

If you are worried about keeping cash in the bank these days, then its bricks and mortar like this that offers a sensible alternative - an alternative to be enjoyed for many years ahead.

If you want to find out more on Vila Jardins dos Oceano, Santiago then please register for due diligence guidance download. then email me: Lance at overseaspropertytalk dot com or call on 0044(0)113 3131000.