Find Time to Fly to Israel
If you are buying a second-hand apartment, visiting in person is crucial to understanding the market and what you are looking for.
If you are buying in a new build or in a TAMA 38, although not required, it is highly recommended to visit the building site in order to understand the location in which you are buying.
Get Prepared
You have to be in a position to jump on an opportunity when it arises. What does being prepared look like?
1. Get a lawyer
Ask your broker, friends and family for recommendations. Then, speak with each of your options and make a decision about the lawyer you want to work with.
2. Make sure your finances are in order and your mortgage is pre-approved
If you do not know your budget or are taking a large mortgage, it is important to deal with this from the beginning. You do not want to fall in love with a property you cannot comfortably afford.
3. Know how you are signing the contract
If this is not sorted before you advance in your search, it will not only delay deals, but you will possibly also lose out on opportunities. Your lawyer will talk you through your options.
4. Understand the additional costs involved
Do not get all the way to signing without thinking of your closing costs; from the beginning ask for a breakdown of your fees!
Don’t Think You Can Beat the System
If you believe prices are going to drop, then it is your prerogative to wait. If you are someone looking to buy within the next few months, do not expect that an apartment listed at 9 million shekel will sell anywhere near 8-8.5 million shekel.
Expecting to buy at a significant percent below market price with the market in its current state is extremely unlikely, and you may end up missing out on a great opportunity.
A lot of TAMA 38s and new builds are still selling at the asking price.
Do Your Due Diligence
If you happen upon a great deal during your property search, make sure to jump on it, but do not forget to do your due diligence.
Moving in on a deal is important, but that does not mean you have to sign within the week. Sellers should give you reasonable time (normally two to four weeks) to do your proper due diligence once you have a good faith agreement and contracts are issued.
Conclusion
Be in the right headspace!
These rules are not specific to Israel and could apply anywhere. If you are buying from abroad, you need to be extra prepared and be in the right place to jump on opportunities.
The process is not as complicated as it seems if you surround yourself with a team of experts who will ensure you are doing everything necessary to make your purchase a success.
You do not want to be in a situation where you found an apartment that you want to buy but the seller/developer pulls out of the deal because you are taking too long to get things you easily could have organized before.
I am currently in Teaneck as part of my Israel Real Estate Event Series and would be happy to schedule a personal meeting to discuss your specific property needs.
This article is based on the opinions of CapitIL Real Estate CEO & Co-Founder Ben Levene. Ben Levene is a Jerusalem Real Estate expert with over 10 years of experience, specializing in helping Anglos purchase real estate in Israel. To start your Israel property search, please contact Ben at +972-53-822-4336 or [email protected].
