Buying an apartment on paper

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Forum -> Inquiries & Offers -> Israel related Inquiries & Aliyah Questions

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amother

Wed, Nov 01 2023, 9:08 pm

Has anyone bought an apartment on paper recently? Trying to learn about the process and figure out how much money we would need to put down upfront. Thanks!

essie14

Thu, Nov 02 2023, 1:19 am

We've done it more than once.
Are you a resident?

In general, it's usually 20% down and 80% at the end.
If you're not a resident, I believe you may have to put down 50%? But don't quote me on that.

What other questions do you have?

amother

PlumPink

Thu, Nov 02 2023, 1:20 am

Great thread idea. Curious too.
My kollel BIL and his wife that doesnt work just did it, they asked around for tzedaka and donations until they had enough. I wonder how much they had to put down, its in one of the new places in RBS

amother

Jade

Thu, Nov 02 2023, 1:30 am

We did! No regrets. Other than very little construction during the war. Feel free to ask anything.

dats me

Thu, Nov 02 2023, 2:31 am

amother Jade wrote:

We did! No regrets. Other than very little construction during the war. Feel free to ask anything.

We also bought on paper a few months ago. We did 20/80, which for us was very beneficial because we still have time to put the rest of the funds together.
Can’t tell you too much more because we’re not at the end yet . My biggest concern is who the neighbors will be.

amother

Daffodil

Thu, Nov 02 2023, 5:22 am

amother PlumPink wrote:

Is this serious somebody asked for tzedekH in order to buy a house? And people gave if I guess they can adk anything they want I’m just surprised that people would give. I have a many friends that rent and I can’t imagine them asking for money in order to buy a house. I’m not sure if I’m more shocked or impressed that they knew people that we can. Because personally, I have my own children to help our house and I can’t help them do that at the moment. So I will definitely help them before I could help somebody else. Actually I’m not impressed. The wife doesn’t work and I husband doesn’t work and they ask for Handles. This is not something that I would support

amother

NeonGreen

Thu, Nov 02 2023, 5:29 am

My grandparents just offered to help us buy an apartment.

How do I find out about planned projects?

Especially in Beit Shemesh and Har Yonah.

How long does construction take start to finish?

How much cheaper is it to buy on paper?

amother

Jade

Thu, Nov 02 2023, 5:53 am

amother NeonGreen wrote:

We bought in RBS. Any realtor here will know. Construction time is variable, big projects take longer, some people buy after the foundation is poured and others after the building is standing. We bought earlier. Our apartment based on market and the price we paid is about 1,000,000 nis less right now.

amother

Charcoal

Thu, Nov 02 2023, 6:42 am

Not all apartments payment plans are split 20/80, ours was 20/30/30/20.

Be aware that the apartment will probably not be ready on the date they say, give about an extra year. You may be lucky but most people I know were about a year+ delayed.

Also, you will have expenses after it is ready. For example, kitchen (most come with a very very basic, minimal kitchen), mazgan, soragim and screens, utility connection fees, and that's besides for anything else you want but maybe can live without (light fixtures, aronot, finishings, paint, etc) or upgrades during the process (tiles, any changes in the layout/electric/bathrooms), and don't forget Mas rechisha, realtor and lawyer fees.

All of those things being said, buying on paper was one of the best things we did. We stuck it out in a very small apartment for the few years it took for our apartment to be ready and really got the apartment we wanted, with the kitchen we wanted and other changes as well, and the price has gone up by over 50% in the three years since it was complete. We could never have afforded to buy our apartment had we not bought it on paper. (The same for many many of our friends.)

dats me

Thu, Nov 02 2023, 8:04 am

amother Charcoal wrote:

Regarding it being ready on time, our contract states that if it’s not ready at the specified date the contractor has to pay our rent. I believe this is standard practice in these projects and it’s therefore unlikely that it won’t be ready on time because the contractor is highly motivated to avoid that scenario.
Regarding the extra expenses you mentioned, some of those apply for any apartment purchase , not just on paper. Your lawyer should be able to provide you with a specific list of the extra expenses at the end, they won’t be surprises.

amother

Thu, Nov 02 2023, 8:28 am

Thanks everyone. No I’m not a resident. What areas have you bought in and does anyone have a broker to recommend? Thank you

amother

Offwhite

Thu, Nov 02 2023, 8:35 am

dats me wrote:

Honestly that sounds like a bad idea. Construction generally takes longer than projected no matter who is doing it or where it’s taking place, there’s a million tiny details that go into it and one small delay can impact a lot of other components. I’d be concerned if there was such a clause in my contract because I would assume the builder might end up cutting corners in order to complete it in time. There’s no way everything can go exactly as planned in the planned time frame, its extremely rare.

dats me

Thu, Nov 02 2023, 8:44 am

amother Offwhite wrote:

I hear your concern , hopefully it won’t be an issue for us because the construction was ahead of schedule when we signed. Meaning , the contractor gave himself plenty of extra time and it will probably be finished before the agreed upon date. In any case , they are obligated to provide you with your apartment according to very specific criteria as written in the contract so they can’t exactly decide to cut corners without being held responsible. You need to have a competent lawyer to make sure you are not falling victim to a bad deal.

essie14

Thu, Nov 02 2023, 8:54 am

dats me wrote:

In any case , they are obligated to provide you with your apartment according to very specific criteria as written in the contract so they can’t exactly decide to cut corners without being held responsible. You need to have a competent lawyer to make sure you are not falling victim to a bad deal.

Exactly. Once you have the keys, you can bring in an engineer and he will produce a report, based on the plans you signed on.
If things are wrong the builder has to fix or you can sue.
It's worth every shekel to have a good lawyer with you for the process. He/she will examine everything before you sign and will assist you when you've received the keys.
We've done this more than once and also represented family members who bought on paper.

amother

Cinnamon

Thu, Nov 02 2023, 9:40 am

how does everyone have so much money?
do you ever take a mortgage or you pay all the money as needed when its due?

also can anyone help me out- if you do take a mashkanta (mortgage) what are the interest rates like? I know in USA they are very high now..
thank you for help

essie14

Thu, Nov 02 2023, 10:57 am

amother Cinnamon wrote:

You take a mortgage on the 80%
Mortgage rates vary. You can contact a mortgage broker.
I recommend https://mortgageisrael.com/

amother

PlumPink

Thu, Nov 02 2023, 11:00 am

amother Daffodil wrote:

Im impressed, at least they arent throwing money down the drain on rent like I am
Think my BIL went around to wealthy families who give maaser to avreichim and he went to a few gemachim and took out loans. We are saving up to buy on paper iyh one day we will be able to...

amother

Cinnamon

Thu, Nov 02 2023, 11:24 am

essie14 wrote:

You take a mortgage on the 80%
Mortgage rates vary. You can contact a mortgage broker.
I recommend https://mortgageisrael.com/

do you have a ballpark amount that rates are currently?

amother

Calendula

Thu, Nov 02 2023, 12:35 pm

amother Cinnamon wrote:

do you have a ballpark amount that rates are currently?

It's 15 yr 2.99% now. We're in the process of buying on paper

amother

Thu, Nov 02 2023, 12:46 pm

amother Calendula wrote:

It's 15 yr 2.99% now. We're in the process of buying on paper

Are you a citizen?

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