How to Buy a Home in Israel- 10 useful tips
This short guide is intended for singles, newly married, retired, divorced or investors who are planning to buy an apartment or a house and would like to minimize the risk. We have compiled a list of 10 rules & tips from our practical experience that will help you identify a good opportunity and avoid pitfalls. We hope you will find those tips useful.
Before diving into the subject, here is a brief description of who we are:
Noam Real Estate Investment Consulting & Asset Management is a Digital Consulting Agency working mostly around Tel Aviv & the Center of Israel. Our mission it to assist investor and home purchasers to seek and find quickly the right asset or home for them, and to purchase it below market value.
This is our list of Tips for you:
When possible try to leverage your budget with a Mortgage / Financing. But make sure that the monthly repayment will not exceed 30% of your free net monthly family income (even if the bank allows it)
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If you can purchase two similar apartments, one renovated and the other not, and the price difference between them is not much, try to prefer the renovated one - Typically renovation costs tend to exceed estimations)
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Consider cautiously: deal that are for too long in the market, when the expected construction duration is abnormally long, or the expected permit for construction prolong
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Be aware that apartments in buildings that have a gym, a swimming pool, security doorman, etc., the monthly management fees beyond the municipality taxes, etc. are relatively high, reducing the possible rent that you can charge or increase your monthly cost
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It is important to choose an attorney whose main experty is conducting Real Estate transactions in the city or in the area in question and to avoid hiring an attorney who is "close to the family" but who is not an expert in the aforementioned field
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When planning your purchasing budget, you need to leave aside money for additional expenses of purchasing tax, attorney, broker and consultant (in total about 12% more)
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A good Broker provides information about the neighborhood and the desired property and more importantly also about alternative properties (don't be ashamed to ask) and he helps closing deals. Negotiate the terms but do work with Brokers
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Always prefer apartments that are in a relatively new building over cheaper apartments but in an old building - typically the maintenance costs of an old building are higher and their value hardly increases
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When you go to see an apartment for purchase, even if you come with a broker, you should ask local tenants you accidnetaly meet in the building about the buidling, its advantages & disadvantages - even try to get their phone number
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Since this is the largest transaction that you will probably do privately, it is worth hiring a Consultant who will accompany you through all the steps, will reduce you time spending, help you raise funds, reduce risk and will be there for you to consult
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