Marsa Alam Beach Resort

Ref: 77013

Type: Apartment (New, Offplan)

Location: Marsa Alam, Red Sea Coast, Egypt

Price: 29500 EUR (29500 EUR)

Size: 42m2 to 100m2

1 bedroom, 1 bathroom

recommended

Pool
Terrace

Images

Guaranteed Rent

Guaranteed Rent on Two bedroom apartments Only-

The two bedroom apartments include a five year rental guarantee. This guarantee can be covered by IPI or with the optional bank backed guarantee. The guaranteed rental returns is:

Year 1: 6%
Year 2: 8%
Year 3: 10%
Year 4: 12%
Year 5: 14%

Should you wish to have the added protection of a bank backed rental guarantee then the cost for this will be a €50 set-up fee and 1% of the guaranteed amount. With the rental guarantee option you are entitled to six weeks access to the apartment per year which can be taken at any time. You should provide two months notice that you intend to use your apartment in order to ensure its availability. The maintenance fee is covered with the rental guarantee however should you wish to not take the rental guarantee then you would be required to pay the €50 per month charge.

The Development

The Marsa Alam Beach Resort is an exclusive, five star, 1434 unit development. Located frontline, on the sun-drenched Red Sea Riviera it has its own private 500m beach and house reef. Marsa Alam is widely regarded as the world's premier diving destination, the resort takes full advantage of its enviable location with two private jetties, an on-site diving school, a water sports shop as well as a full range of facilities. Not only does the resort offer the perfect holiday destination, but it also provides an unrivaled investment opportunity. Marsa Alam is the hotspot of the Red Sea and this resort encompasses low entry levels, high rental yields, a bank backed 5 year 10% average rental guarantee, developer funded mortgages, payment plans, an escrow account and a developer with a strong track record in respect to high quality developments throughout the world.

Location

Until recently, Marsa Alam was once a small fishing village located in Egypt, on Red Sea west coast. However, it has rapidly increased in popularity and since the opening of its International Airport, it has started to become yet another favourite holiday destination on the Red Sea Riviera. In fact, most informed observers believe that it is destined to become more popular than Sharm El Sheikh and Hurghada within the next few years. Marsa Alam is situated near the Tropic of Cancer where the Arabian Desert meets the Red Sea and it has the appearance of a tropical paradise with its palm tress, mangroves and sea coasts fringed with barrier coral reefs. It has already gained a strong reputation amongst scuba divers due to its numerous and unspoilt diving sites both along the coast and offshore. Marsa Alam also has some inland attractions such as the Emerald mines and the Temple of Seti 1 at Khanais near the Marsa Alam Airport.

Facilities

The Marsa Alam Beach Resort will encompass a full range of on site facilities designed to cater to everyone's needs. For the more active the resort will include swimming pools, scuba diving school, multiple sport's courts and organized beach sports activities. For those that prefer to pamper themselves whilst on holiday, a fully equipped wellness, Thalasso and beauty centre will cater to your every need. An extensive range of on-site restaurants will allow you to sample culinary delights from around the world and why not finish the evening off with a drink at one of the beach bars situated right on the magnificent Red Sea. With tour and excursion services as well as shuttle, limo and car rental, exploring the world outside the resort couldn't be easier. To make your stay all the more enjoyable, the resort also comprises two designated children's areas. LAN internet connections in all apartments will ensure that you're never to far from family and friends should you wish to be contactable, but with all of this on your doorstep you'd be forgiven for not wanting to be.

9 swimming pools; both salt and freshwater
2 private jetties
Scuba diving school
Diving and water sports shop
500m private beach
House coral reef
Supermarkets and shops
Shopping mall
Restaurants, bars and a nightclub
24 hr concierge, reception and room services
Amphitheater
Cinema
Children's playground
4 tennis courts
2 basketball courts
Botanical landscaped gardens with brooks and fountains
In-house serviced laundry
Travel and excursion services
Spa, wellness, Thalasso and beauty centers
Medical and dental services
24 hour in house security services with manned gate
Shuttle service, limo service and car rental
LAN internet connection in all apartments
Wireless internet in Suite section

Rental Returns

The rental on the suites will be derived through the use of a rental pool. The rental from all suites is pooled and at the end of each year is divided amongst investors based upon purchase cost and then paid into a nominated account. This ensures that all apartments receive a share of the rental income of the suites as a whole, not just of when their individual apartments are being utilized. The conservative predicted rental income for suites is 10% per annum and this will vary directly with occupancy levels. Therefore the higher the occupancy level of the resort, the higher the rental return you will receive. You have unlimited access to your apartment under the rental pool conditions however, you will not receive rental income whilst yourself, friends and family are using the apartment. Suites will be subject to a maintenance charge of approximately €50 per calendar month which will be deducted from the yearly rental payment. This maintenance charge covers all costs associated with the suite such as: maintenance of communal areas, servicing and cleaning of the suite, insurance for damage caused by guests, utilities, any local taxes and provision of bathroom accessories.

Guaranteed Rent on Two bedroom apartments Only-

The two bedroom apartments include a five year rental guarantee. This guarantee can be covered by IPI or with the optional bank backed guarantee. The guaranteed rental returns is:

Year 1: 6%
Year 2: 8%
Year 3: 10%
Year 4: 12%
Year 5: 14%

Mortgages

Developer funded mortgages are available on 81 of the apartments in the Marsa Alam Beach Resort. These mortgages are non-status, developer funded mortgages and are available on a number of apartments whilst available.

The mortgages are over a 6 year term with an interest rate of 10%pa. The mortgage is secured against the rental income and therefore the client will need to make up any shortfall between the mortgage payable and rental income received. The yearly outgoings for mortgage will be:

Garden apartment: Loan: €30,000 P&I repayment €5,510 p.a

Middle apartment: Loan: €24,000 P&I repayment €6,888 p.a

Penthouse apartment: Loan: €36,000 P&I repayment €8,266 p.a

As a result all apartments with mortgages will become cash-flow positive in year five of the rental guarantee.

Investment options

The Marsa Alam Beach Resort offers various investment options to cater to all budgets including:

Presidential suites from €86,250

Junior suites from €29,500

Executive suites from €39,500

Two bedroom apartments (with rental guarantee) from €43,945

Two bedroom end apartments (with rental guarantee) from €45,945

About Egypt

Property in Egypt is turning the heads of international property purchasers looking to buy into an exotic, historical and beautiful country with a warm climate and a booming tourist industry to match. Thanks to the Suez Canal, which links the Red Sea to the Mediterranean, Egypt has played a strategic role in the region for more than a century. Because of its large population, its influence on the Arab countries and its geographical location, Egypt is, moreover, an intermediary country.

Egypt has a dry climate. It is hot in the summer, with temperatures averaging between 80 and 90°F(27 - 32°C). Winters are warm, with temperatures averaging between 55 and 70°F(13 - 21°C). A steady wind from the northwest helps hold down the temperature near the coast.

The Egyptian property market along the red sea is really attractive to investors looking to acquire properties with great growth potencial. Investors have been benefiting from the country's increase in tourism traffic and also as a result of the Egyptian government's sweeping reforms designed specifically to attract foreign direct investment.

Egypt has been known as a destination guaranteed to give visitors hot weather and a myriad of ancient relics. The property market is also fuelled by the country's booming water-sports industry. Hurghada is also renowned as the world's premier diving site. Red Sea properties are by far the most popular amongst foreign house-hunters and this has been reflected in impressive price increases. The property market has performed extremely well last year, the Red Sea area has seen prices increase by over 25 per cent. Investors are attracted to value for money, low running costs, excellent transport links from Europe, superb climate, strong rental demand and high capital growth. With the demand for holidays on the Red Sea, the property market looks set to thrive.

Property prices here are good value for money. You can purchase a Red Sea beachfront apartment for as little as €55,000. Tourism continues to grow, and with a year-round climate the investment opportunity is excellent. With 6-7% expected rental yield-based on 40% occupancy Egypt offers an excellent combination of capital appreciation and rental income potential.

Flight time from Ireland: 6 hours
Major airports: Abu Simbel, Alexandria, Aswan, Borg el-Arab, Cairo International, Hurghada, Luxor, Sharm el-Sheikh

A guide to buying property in Egypt

An investor who buys into this emerging property market now may well be buying into a prolonged period of growth which is the exact appeal of Egypt from an investor's perspective. As a foreign investor you have the right to own real estate and land in Egypt, they come with Freehold property title. The majority of real estate investment interest is focused on the main cities and resort areas in Egypt and these are far more accommodating to the international property market. Furthermore the Egyptian government is committed to attracting foreign investment into many sectors including the real estate sector therefore the path is being eased for investors all the time. Property registration fee is 3% of the property's net value. You will need to employ a lawyer specializing in real estate law in Egypt to assist with any such purchase to ensure the transaction is conducted legally and that at the end of the property buying process the investor is the legitimate owner of the real estate and can seek to have it registered in his name and acquire the deeds to the real estate.

An investor requiring a mortgage to purchase property in Egypt may like to secure this outside of the country - alternatively mortgage law in Egypt has recently improved and investors and foreign buyers do have access to mortgage products in Egypt now. However, the real estate they are seeking to purchase has to be registered at the property registry for the mortgage company to consider it. To be eligible for home finance an investor will need to fund no more than 85% of the property purchase price and be able to repay within either 20 or 30 years.

Once a property has been decided upon it is usual to pay a holding deposit that takes the property off the open market while contracts are drawn up. In overseas investments it is critical to have a lawyer conduct searches and to advise on the legality of the purchase. Even if a property investor in Egypt is buying a brand new property from a well established developer it is wise to take advice from an independent lawyer. Those considering investment property in Egypt would be wise to employ an estate agent to assist them with their search, negotiations and also with the property buying process.