I cannot cease to be baffled by the sheer lack of prudence and common sense shown by a lot of people. How can, anyone in his/her right frame of mind, pay cash upfront for a flat/house/apartment/nipa/condo that hasn't even been built yet??? Why not wait, do some legwork, look for suitable alternatives that are already up and running??? What is the point of complaining afterwards, when everything has gone pearshaped, and the money has disappeared together with the developer.... Daft.......
Sometimes when people think they're too smart, they think that they cannot a mistake. That they see an opportunity with no chance for failure. Usually when you buy a flat that hasn't been built yet, the prices are still very low. And usually you also get incentives like discounts and such when you pay upfront. But that's downside right there. What if the construction becomes botch? Or the developer is a crook and just runs away with your money. It's weighing pros and cons.
I went to a Filinvest night. Very nice food but sadly I declined one of their (yet to be built) properties on SRP.
Any market involves persuading people who don't know how to value a commodity to pay more for it than it's worth. There's an old saying in the financial markets: There's always a fool in the market. And if you don't know who the fool is, perhaps you're the fool.
The revolution of 2011 changed a lot of things in Egypt, just one of the reasons that contributed to this problem for a seemingly respectable property company. 30 years of stability under Mubarak were cast aside and the Muslim Brotherhood candidate Mohamed Morsi took control of the country for a year before being overthrown. Hopefully the new president El-Sisi can get the country back on track.
Just remembered that high rise condo at the back of Megamall. Apparently, the developer though he owned the land, built that condominium, then halfway through the constructions, was slapped with a lawsuit saying that complainant was the rightful owner of the land. A friend of a friend bought a unit there and can't get a refund. Not sure now if it is still unfinished (the building).
I would not consider buying a house that was being built - not even in the UK where laws to protect buyers are pretty good. And I would not even buy a house that had just been built - wait a few years to see if there are general problems with houses built in the same area by the same builder then buy before any new house build house insurance has run out. This is what I did, when I bought the bungalow I live in back in 2006. It was six years old, well maintained by the then current owner and I contacted the local Parish Council to see if there were rumours of problems with the houses on the small estate. There were none.
