A Russian woman in Egypt suddenly realized that an apartment by the Red Sea is not a gold mine, but a complete disappointment

A Russian woman in Egypt suddenly realized that an apartment by the Red Sea was not a goldmine, but a complete disappointment

“An apartment by the Red Sea is not a goldmine, but a complete disappointment,” said a Russian woman who has lived in Egypt for a long time, after monitoring rental prices. And the payback of the “golden” apartment by the sea from renting out did not please the compatriot at all.

Russians, Europeans and Egyptians tend to buy an apartment in the resorts of Egypt to earn money: there is an opinion that housing by the sea can be profitable to rent. However, as it turned out, we are talking only about highly liquid housing, located close to the sea and with the necessary infrastructure. It is because of the high demand for them that prices for both purchase and rental are rising. “But what's interesting, if we talk about the usual popular areas of Sharm el-Sheikh, rental prices remain suspiciously low. Judge for yourself: 13 years ago, renting the cheapest apartment in Sharm el-Sheikh (with furniture) cost 2,000 pounds (at the current exchange rate, about 5.00 rubles). More often 2,500 (6,200 rubles), but for 2,000 you could find options. At that moment, $1 cost 5.5 pounds, that is, you could rent an apartment for about $360 dollars a month. This is a lot, given that the average salary in Sharm was then 500 dollars, ”the Russian woman recalled and added in her blog on Yandex.Zen that since then the dollar has grown almost 5 times against the Egyptian pound, and prices – on average only 3.5-4 times.

However, options for renting a budget studio in Hadab, one of the areas of the resort giant Sharm el-Sheikh, can currently be found in the region of 3,000 pounds (7,400 rubles), which is $122 at the current rate. At the same time, the cost of a 1-room apartment in the same area in October was 720,000 Egyptian pounds (1.8 million rubles or $23.3 thousand).

The Russian woman used the formula for calculating the average payback of housing, which should be about 10 years, taking into account continuous renting at current rates, and was horrified: with a housing cost of 720,000 pounds and a rental rate of 3,000 pounds, the apartment would pay for itself not 10 years, but all 20 she counted. “There is somehow too much for housing on the Red Sea … logically, either rent should cost more, or the price of the apartment itself should be lower,” she added. Typically, such a formula is used to understand the adequacy of the cost of housing: if the rental rate is higher, it is profitable to rent such an apartment, if it is lower, it is not.

Summarizing, a compatriot noted that having such housing as a property does not make much money on rent. However, tourists left comments on her post, where they explained that her example of an apartment for rent for 3,000 pounds is rather an exception, and for sure this is an apartment without repairs and necessary furniture. “Studios for 3 thousand – there are no such prices, or is it something completely “killed” and sad. I rent for $ 300, everything is on the reservation until March. Although prices have fallen, about 10 years ago, view studios were 500 pounds each, and with their own beach, they reached 800 pounds. We are waiting for prices to rise, real estate itself has already risen in price, you can’t buy decent cheap anymore, ”one Russian woman wrote in response to the author’s statement.

For those who care about a healthy lifestyle, we recommend reading: “A cardiologist named 4 reasons why people should laugh more often.”

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