A positive future?

Kris

Administrator
Staff member
#2
In Tunis process have been rising strongly* not unlike London in the UK as people turn their eroding money into an asset they feel will maintain or increase (I don't think so med/long term). Some of my friends have moved to Berges DU Lac due to the perceived safety of such a location if the shtf.

*Dinar has fallen so take that off the gains

However really what in Tunisia justifies 300,000£ homes > 1 million £+ outside the elite areas of Tunis?

The economy is not good and property was in a bubble (for Tunisian wages) before the revolution. Something crazy like 3000 homes in the capital where owned by the Ben Ali clan and 20% of new build properties where empty.

Its a very mixed bag outside the posh bits of Tunis you may get a rich foreigner/expat or it may stay for sale for years.

The houses I have looked at have come down from 700 > 500-600,000 dinars and its now 3 dinars to the £ so your talking £150-200,000 for a villa concrete construction in land of about 700-900m2

Thats down 20% from before just on the dinar....but the rent for such places maxes out in the regions at about 800/900 dinars outside season and 1500/2000 dinars in the few months of summer.

This represents a return of about 3% which is crap as inflation is much higher than this as are bank deposit rates.

I don't know where they get the figures from that article maybe you can get 9% buying poor peoples homes and renting them but imagine chasing the money? In bizerte decent working class apartment housing is still 70-120,00 dinars (30k£+tax and rents out for 250-350 dinars per month around a 1000 a Year woohoo! (3-5% for the hasstle)
  • Currency risk
  • tax risk
  • stability risk
  • crime
  • economy poor
  • inflation may be about to rise = rate rises and further falls

Historically property in Tunisia would return you 5% on a family house.

I am the prime foreign buyer of a house in Tunisia my wife is Tunisian I have the money for a Tunisian house ready. I would even buy a bargain if the country went to the dogs because i have family there and would play the long long game. But would i buy a house at this time at these prices.... NO WAY

At some stage the USA is going to raise rates this year say 60/40 in favour this is going to cause money to leave developing nations and probably cause another bout of inflation in Tunisia (the dollar is already screaming ahead)

If you had a Tunisian house over the last year you would have lost xx% just on the currency falling.

You then add to that the security issues and economic issues etc etc

I would think a correct rental return would be nearer the 8-10%+ level which make the 500k villas I am keeping tabs on more like 200,000 dinars which is still 60-80,000 £ 3-4 the average wage in the UK!

This fall probably wont come via price drops but most likely due to currency collapse and inflation.

So for me I am going to splash out for a nice villa for 500-750£ for the whole month 1000-2000 dinars and not have the stress.
 
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Scottochott

Well-Known Member
#4
Bear in mind the euro area much more important to tunisia than the dollar. Perception is Europe will start to recover, and the market for Tunisian exports with it, as well as appetite for investment in a still relatively cheap Mediterranean opportunity. A lot will depend on the new Tunisian govt, however I am more optimistic than you Kris, and personally am looking at the Sousse/Chott Meriem area for investment, slightly different to the Tunis area. Time will tell, but even with the recent dinar depreciation I'm still holding a strong "on paper" profit, with a good medium term potential for further future gains. Nothing counts until I get any gains out of the country in £sterling terms, looking forward to Essem's updates on how that goes! I've always looked at Tunisia as a medium to long term investment opportunity, and the recent setbacks won't change my "glass half full" mentality, though I recognise it's a risk and am thankful that all my eggs are not in this basket!
 

Essem

Moderator
Staff member
#5
Bear in mind the euro area much more important to tunisia than the dollar. Perception is Europe will start to recover, and the market for Tunisian exports with it, as well as appetite for investment in a still relatively cheap Mediterranean opportunity. A lot will depend on the new Tunisian govt, however I am more optimistic than you Kris, and personally am looking at the Sousse/Chott Meriem area for investment, slightly different to the Tunis area. Time will tell, but even with the recent dinar depreciation I'm still holding a strong "on paper" profit, with a good medium term potential for further future gains. Nothing counts until I get any gains out of the country in £sterling terms, looking forward to Essem's updates on how that goes! I've always looked at Tunisia as a medium to long term investment opportunity, and the recent setbacks won't change my "glass half full" mentality, though I recognise it's a risk and am thankful that all my eggs are not in this basket!

I look forward to that too :rolleyes: but not holding my breath. It's taken me 7 months so far, from the signing of initial contract of selling and buying, to get to lodging file for authorisation to sell - hopefully that will have been 'accepted' this week!

Nothing straightforward. If accepted, authorisation, if granted, should be through within 3 months but have been warned could be longer because of government changes but could be shorter if buyer has anything to do with it ;). Thank goodness I did my own terms of selling or I'd possibly have lost the sale. I've probably mentioned before that I'm aware of 4 lots of people who have waited more than 2 years to get their money out from selling here but I don't know individual details and every case is different.
 

Essem

Moderator
Staff member
#6
Not sure where they get some of their info from:
'Fuelled by a bustling tourism industry, Tunisia's property market has attracted a great number of foreign buyers looking for affordable properties in prime locations to spend their holidays. Amazing to think that it was only in 2006 that the real estate market was opened to foreign ownership.'

Tourism certainly isn't bustling now with some hotels stating they only have 25-35 clients at a time (that could be time of year though) and foreigners were allowed to buy before 2006. I bought in 2005 and many other foreigners did so before me!

Weather is dire too and, for the sun worshippers amongst us, winters here seem to be getting worse than before with, for example, 3 good days out of 14, not encouraging for holidaymakers looking for some winter sun. Baltic at the moment.
 
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