The key steps to success in your real estate project in Israel
Do you dream of owning land in Israel but do not know how to make this project a reality? Here is a short guide to a successful real estate purchase.
- Study the local market
In order to have a clear idea about prices in Israel (especially for large cities such as Tel Aviv or Jerusalem) it is better to carry out a first search by consulting ads on different real estate agencies.
You can count up to 10% less on prices if your real estate agent is a good negotiator.
- Establish your budget in a rigorous way
In addition to the price of the property that you have identified, you must add the following fees:
- 2% agency fees
- 17% VAT
- 2% lawyer's fees + VAT (1% if you spend with Evenis Group's lawyers)
- 8% acquisition tax (this may vary depending on your citizenship or the date of your Aliyah)
And finally also count a budget for possible work
This will allow you to calculate the expenses related to the purchase of your future apartment and thus to determine your contribution and the mortgage to be made.
Please note that in Israel the borrowing capacity does not exceed 50% of the value of the property if you are not an Israeli citizen and 70% of the property value if you have citizenship.
The real estate market in Israel is a saturated market, the demand far exceeds the offer that's why even with a comfortable budget (500,000 euros for example) you can not claim more than a suitable 3.5 rooms in a neighborhood nice in a big city.
This should not discourage you because you can find the property that suits you in another city such as Hadera, Bat Yam etc.
Our advice would be to properly target your needs and set priorities; that is to say :
- The location
- The number of pieces
- Elevator / basement / carpark
- The orientation
- Financing plan etc.
- Get in touch with professionals
The agency Evenis Group and these more than 200 employees offer you a selection of properties corresponding to your criteria and organizes days of visits.
In addition, Evenis Group offers a law firm experienced in real estate contracts as well as a wide range of professionals (movers, renovations, interior designers, etc.).
- The purchase
When you find the property that suits you and you want to buy it we advise you to check: the registration to the cadastre, the local tax bill, building permit, moving-in date, payment dates etc. Your lawyer can do this for you.
Take your time to review all the conditions and feasibility of the project.
Your lawyer writes a mention to the land register indicating who the current purchaser is so that the seller of the property can not sell it to anyone else without your consent.
It is at the time of the signing of the purchase contract that you pay 20% of the total at least, legal fees, agency and if necessary the acquisition tax.
Once your contract is signed, you must go to the bank to provide the necessary documents for the mortgage loan:
- Tax return
- Salary Bulletins
- Bank statements
- Proof of civil status etc.
All you have to do is make the name changes to the mayor for the arnona (housing tax), electricity, water and gas and you can finally enjoy your apartment in Israel.