Buying an apartment for the first time

amother

Fri, Sep 04 2020, 5:39 pm

Any olim bought apartments right after making Aliyah? How was your experience?
Anyone was able to buy with low down payment and able to take a mortgage??
So we’re not coming in with large savings. My mom wants to help us with rent for the first year, however, after reading posts that you have to be lucky to get a good landlord and most don’t rent out for many years, I’m having second thoughts. We’re not much into moving a lot because... it’s expensive each time we move and a big hassle. We have an idea where we want to live.

Also, I hear olim get more benefits from buying an apartment.... what about renting? So I was thinking maybe it would be better if I ask my mom to contribute for down payment and we take down a mortgage. However, don’t we need to secure jobs first???

What should I do?
I’ve always wanted to own an apartment, doesn’t have to be new and giant. I just feel that it’s a waste of money to pay rent each month instead of paying mortgage on your own apartment.

BadTichelDay

Sat, Sep 05 2020, 3:37 pm

Not sure if that's a good idea.
You wrote you have an idea where you want to live. Have you been there before in person? Have you got any first hand experience with that area?
Once you buy an appartment, you are most likely stuck there for a long time for good or for bad. Maybe the neighborhood turns out different from what you expected. Maybe the apartment will be less of a fit if and when your family grows. Re-selling an appartment is much more of a hassle than renting somewhere new. Generally, the recommendation for olim is to rent first and test out their desired area.

Do you know already where you are going to find jobs in Israel or can you work online so it doesn't matter?
If your place of work is too far from the place you bought, that can make life awkward.

And for a mortgage, of course you'll need a steady source of income.

The benefits that olim get for buying an apartment are available for either 5 or 10 years after making Aliyah, check it out. In any event, it gives you some time, exactly because people usually need time to settle down.

If you have children who need schools etc., are you sure your desired area is a good fit?

Iymnok

Sat, Sep 05 2020, 3:45 pm

IME landlords each had their own story, but none were horrible. Rent for a little to get your bearings. It’s a much bigger waste to buy in the wrong area for you. If you will be coming from larger living quarters, buying a small central dira might not work for you. But then again, it might.
I say rent for a year or so, then make the best decision you can.

amother

Silver

Sat, Sep 05 2020, 4:44 pm

It's really not a good idea to buy in a neighborhood you don't know. Rushing into your biggest investment ever just isn't prudent.

Israeli banks require 30-40 percent of the purchase price as a mortgage, and proof of income or assets to cover the rest. It doesn't sound like you have either of those now.

You'll get a discount on arnona, property taxes, for your first year, so that's something. Use the time to check out neighborhoods where you might want to buy.

It's nice to feel settled, but don't rush I to something for the security. Many olim have found that their first house wasn't in the right place. Take your time to get it right.

amother

Sat, Sep 05 2020, 9:31 pm

Ok, thanks for the info.

I was born in Israel but lived abroad more years. Yes, I’ve been visiting and now my mom lives there so I believe I know where we should live.

I think you’re probably right we should rent out first because my mom will not be able to help with a 30% down payment and we would need jobs first.

My biggest concern is that I hear that Israelis don’t rent out long term. What if we like the apartment and neighborhood and want to stay longer than a year??? We’re not big in moving a lot, and I’ve moved a lot as a child but since I got married, I never moved! That’s mainly because it’s expensive and I was happy where I was living. We can’t afford to move around as often so is it possible to rent out for 5+ years in Israel?

amother

Maroon

Sun, Sep 06 2020, 1:00 am

Its possible to rent for long just no baal dirah is going to give you a lease longer then 2-3 years at a time - makes no sense because prices go up.
When looking into rental properties mention you are looking for long term rentals - usually they can tell you what their plans are.

You need secure income for a mortgage and a 30% down payment.

The other newer option in some area's is long term rental buildings - but that is a new project from misrad hashikun that just started - so they will only be available in 2-3 years...

twizzlers1

Sun, Sep 06 2020, 1:49 am

I definitely agree that you should know exactly where you want to live before you buy. We moved a lot in our first five years here.We bought on paper once we finish the first year and we're sure that we liked the neighborhood. Most of the landlords we had were good, but I did notice that people really didn't want to give really long-term leases.Moving is definitely a hassle but buying in the wrong place and needing to sell is probably a bigger hassle

banana123

Sun, Sep 06 2020, 2:24 am

amother [ Maroon ] wrote:

I think the biggest factor is that no landlord wants to get stuck with bad tenants for two or three years.

You can always offer a deal that you do all the fixes in exchange for a fixed rent that does not rise when you renew the contract.

Rappel

Sun, Sep 06 2020, 2:55 am

amother [ Maroon ] wrote:

This. And I've never wanted to sign a lease longer than a year, anyway. Longer than 2 years would be folly -- and that's as true in America as it is in Israel. Allowing yourself the freedom to bow out at the end of the year is important when you're a renter. Even if things are good this year, you may want to change things up next year. And if you don't, then you simply sign a new contract.

If you're worried about rising rents - make sure there's a clause in your contract where you determine up to how much the rent can rise upon contract renewal (either in amount, or in percentage). That would relieve you of any worries on the matter.

LovesHashem

Sun, Sep 06 2020, 3:28 am

Many people want long term renters. No one wants an empty apartment and to find a nd new renters every year.

Contracts are short because prices go up every 2-3 years. I know many many people have have rented for 5, 10, even 15 years.

banana123

Sun, Sep 06 2020, 3:43 am

LovesHashem wrote:

The bolded has been our experience.

We are nearing the end of a two-year contract. But this is our third apartment in the city, and it won't be our first time extending a contract, if we decide to do that. Neither of our previous landlords raised the rent at all. Our landlord in Jerusalem did want to raise the rent, though.

I do know people who stayed in their apartments for 10-15 years. Our former neighbors spent 14 years in one apartment, a friend of mine has been in her apartment for 11 years, another person I know spent 10 or 11 years in one apartment before moving to where she's been for the past 7 years.