New Law To The Buyer’s Benefit

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איש לבוש בחליפה ובעניבה קורא מסמכים מול מחשב נייד

12.12.2022

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.

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Real Estate

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New Law To The Buyer’s Benefit