An apartment on paper? The chance and the risk… | All the details you must know before making a decision

Nir Shmol – CEO"To the Urban Development and Renewal Company and the Shanir Company says that "From the time of buying the apartment to the actual time of moving in, the customer benefits from the increase in the value of the new apartment, compared to the differences in second-hand apartments. Also, in most of the new apartments, the tenants enjoy convenient parking and also the presence of a warehouse built to high standards and located near their apartment, something that does not exist in most second-hand apartments".

Among the prominent advantages: When you buy an apartment on paper, you can coordinate with the contractor to make internal changes to the property and the costs for making the changes will be cheaper than doing a massive renovation in a second-hand apartment, which has wear and tear at various points. Likewise, when purchasing a new apartment, the families purchase not only the apartment but also living in a planned and developing residential environment, which has parks and green areas. In addition, unique benefits for tenants in innovative buildings such as a luxurious foyer, a gym, designated rooms for wine storage and more.

Also, many new projects are built in new neighborhoods, so that the buyers enjoy community life in an environment of young families, which are similar to the reference community of the buyers.

According to Shamol: "The engineers, architects and the entire construction team of the project are aware of all the advanced innovations in the construction industry and they apply them in practice during the planning and construction stages. That is why it is about advanced construction in every floor, flooring, kitchens, advanced air conditioners, installation of a smart home system and more. This is compared to carrying out a massive renovation in a second-hand apartment using various professionals, most of whom do not work with advanced methods.

Another notable advantage is the payment terms for buying the apartment are usually flexible, it is not necessary to pay the full cost of the apartment when signing the contract, but at later stages. In addition, in light of the period of time that the client is waiting for the completion of the construction of the project, he has enough time to sell his current property, he is not in a hurry and therefore the amount he will receive for the apartment will be higher, which will make it easier for him when making payments for the new property.

Nir Shmol also says: "From the time of buying the apartment to the actual time of moving in, the customer benefits from the increase in the value of the new apartment, compared to the differences in second-hand apartments. Also, in most of the new apartments, the tenants enjoy convenient parking and also the presence of a warehouse built to high standards and located near their apartment, something that does not exist in most second-hand apartments.

It is important to note that another and important advantage is the size of the room in the apartment. According to the law, all new apartments have a private room"D. which protects the residents in the event of a missile attack. or an earthquake. This is a cardinal advantage for older people and for families with children who, when necessary, enter this room in their home and close the window and the door, compared to tenants in second-hand apartments, some of which do not have a"D, because they were built before the application of this law and people are forced to run to nearby shelters.

The disadvantages of buying an apartment on paper:

1. Linkage to the construction input index which may increase the price of the apartment compared to the original purchase price

2. Usually one should invest in additional upgrades beyond the basic technical specifications of the apartment, mainly in an upgraded kitchen, changes and additions to walls, electricity, plumbing, etc.

3. Those who buy an apartment on paper need to imagine the final apartment in the city in terms of planning, location, view, etc. What’s more, many times you buy on a construction site if it’s a building as part of a multi-building project, that is, a lot is unknown compared to the purchase of a second-hand apartment where everything is known and clear.

4. Taking out the mortgage at a later stage on the apartment on paper may lead to a situation where the interest costs will be more expensive compared to purchasing an existing apartment and taking out the mortgage today.

5. Delayed entry of 3-4 years for most of those who purchase an apartment on paper in Israel as opposed to a fairly immediate entry of a few months in a second-hand apartment.

Nir Shmol, CEO"to the Shenir company. Photo: Tomer Feder

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *