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 that a buyer could have to pay an extra cost of hundreds of thousands of shekels more that were not foreseen when buying the apartment.
A new law was passed last week, July 2022, that puts the burden of cost on both parties. From now on, someone who decides to buy a property on paper, if the ‘cost of building index’ goes up, the buyer will only have to pay up to 40% of the size of the property. The other 60% is on the builder. It’s excellent news for buyers and it can put buyer at ease that they won’t be hit at the end with a huge extra cost.
Due to this law, it’s a great time to buy on paper, especially if the buyers are coming from the United States, where the dollar is currently just under 3.5, which up until a few months ago was 3.15/3.2, but that’s a discussion for another time and another article.
Please check out the new project that we have in Arnona. It’s probably the best building in the neighborhood.
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
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,...
