# Buying Property on the Red Sea Coast



## Peter Mitry (Mar 16, 2008)

A number of people have lost money investing in property in Egypt. This leaves a bitter taste and most are now very negative about buying here.

Others, including myself, have pointed out the pitfalls and emphasized the need to take good legal advice before making any commitment.

I am a Hurghada based agent and have spent the last four years creating a system whereby we use trusted Egyptian lawyers to fully validate the due diligence on any product we feature.

It must be said that this can never be foolproof; a project whose due diligence is sound at the beginning can change dramatically if the market drops and the Developer gets into financial difficulty.

As agents all we can hope to do is to identify the real rogues and avoid marketing their projects. When problems develop with a previously trusted Developer we aim to update our clients and maintain pressure on the Developer to get back on track.

This is never an exact science and even the best agents will make errors of judgement.

Your decision making process however should always include the following:


Find a trusted local agent
Find a recommended legal firm to represent you
Seek opinion on forums from experienced investors
Look for reassurance that your chosen Developer is financially sound
Look for evidence he has completed previous projects on time and on budget

Above all, everyone you meet in Egypt knows someone who has property to sell; always stick by the basic principles above. If something seems too good to be true then it probably is best avoided.

If possible, seek out others who have invested successfully in your chosen project.

There will always be exceptions to the rule but they are few and far between. There will be many others who have lost money because they did not seek good advice.


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