Back in the day, the way to make money was to do a flip. This meant buying a property that needed renovations for cheaper due to the fact that it needed work, renovating it and selling it for a higher price. Through this, you’d make a nice amount of money. Well, those days are pretty much over due to the following factors:
Putting all these factors together, the conclusion is that at this point, the place and properties to buy are those that are on paper. Why is that? Everything is brand new, you get it with high-specs, usually with central a/c and heating built in, including underfloor heating, and more. This doesn’t even include all the amenities that you get, such as, elevator (usually shabbat), storage, private parking, etc. Since you buy it from a company, you’re getting for market value or even cheaper, because they need to sell and they don’t have the greed that private sellers have nowadays. In addition, the payment terms are much convenient and reasonable, for example, 20%-30% at signing and 70%-80% person upon completion of the building, which usually, by the time you receive the property the property is already worth 15-20% more than when you signed.
The only downside is that the cost of the building index might go up over the course of the building being constructed. Even taking this into consideration, I have yet to find people who purchased on-paper and didn’t benefit from the money they made after they decided to sell or save money on buying on-paper.
Bottom-line, nowadays, in my humble opinion, it seems like, the best deals that are out there are the deals that are on-paper.
Until a week ago, if you bought a new property on paper and you went by the 20/80 payment schedule, you got screwed by the ‘cost of building index.’ Let me explain. ‘The cost of building index’ means that if the materials of a building being built were increased, such as wood, metals, tiles, etc., the buyer carried the burden of paying that extra cost. In a standard 150 sqm apartment, this meant...
When we entered Corona and throughout the last 2 years, we believed that we would see the prices decrease and many would take their properties off the market or decide not to sell or rent. We were proven wrong big time. During Corona, and now that we are sort of out of the woods, we are witnessing that the real estate market was and is booming. Properties are being put on the market for extraordinary...
What a year it was in 2021. Looking back at 2021, we can summarize the year regarding real estate as becoming a sellers’ market. The prices went up in Israel by around 10% and in Jerusalem specifically around 9% at least. No one thought that this would be the outcome of a year filled with ups and downs with Corona, and closures in travel. Sow how did this happen? We believe that Black Lives Matter had...
Have you been lately in the City Center of Jerusalem? If you haven’t been, you should come and see it for yourself; you wouldn’t recognize it. Builders and developers have painted the town red with new and exciting construction of high-quality buildings. We can start with ‘Africa Israel’ with their project on Harav Kook St. The location is fantastic, it’s quiet, and right off of Ben Yehuda,...
