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Or Patreanu RE : Everyone knows that investing in real estate is a worthwhile investment. There is no doubt that the real estate industry in Israel in general and in Jaffa in particular is booming, apartment prices are rising, areas that were previously considered “weak” real estate areas are undergoing development and are considered a source of great returns in the near future.

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When you decide to buy an apartment for investment, you have to make an initial calculation of many parameters, which will make the investment particularly worthwhile.

What will be the use of the property?
There are several options to realize the profit from buying the apartment, selling the apartment immediately after buying it, buying a property that has not yet been built in a new project, buying a property for renovation and selling it after the renovation and increasing the value, renting the property and selling it in the future or keeping the property and renting it for a long period. Or Patreanu RE

In any situation like this, we have to think about what suits us best, financially and personally. Each option has its advantages and disadvantages, renovating a property can entail unexpected costs and high mental stress, despite the low starting price. If you chose to rent, you have to take into account dealing with tenants and high turnover. Or Patreanu RE

In the case of buying a property “on paper” in a new project, this is a kind of bet and it is not suitable for everyone and if you have decided to buy an apartment and sell it immediately you should know that it may not be sold on the schedule you set for yourself. In any case of buying an apartment for investment, you need to understand and take into account all the options and choose the way that suits you best. Or Patreanu RE

What type of property is best for me?
After you have decided what the use of the property will be, it is time to choose the property itself according to the decision you have made.
Of course, you need to make the right economic considerations for you first and understand what you can afford. If you decide to rent the apartment for investment or sell it, it is important to know who the target audience is, families, young couples, students and to understand the degree of functionality of the investment apartment. An apartment that is suitable for students and is located near the college is not necessarily suitable for families and vice versa.

If you prefer a land apartment over an apartment in a building, a large apartment that requires more complex maintenance or a small one, an old one that requires renovation or a new and more expensive one. After that, it is important to decide on the area where you are interested in buying the apartment for investment. The area can be close to where you live if you decide to rent the property or renovate it in order to make access to it easier, or you prefer to make an economic decision and buy an apartment for investment in developing areas that will produce a large return in the future, or in sought-after areas where the sale will be made relatively easily. Or Patreanu RE

 

What costs should I expect in the purchase process?
Calculation of costs when purchasing an apartment
Calculation of costs when purchasing an apartment

When buying an apartment for investment, you need to take into account that in addition to the price of the apartment, there are several parameters that increase the initial price and you need to prepare for them financially.

A. purchase tax- Or Patreanu RE
A tax that is paid to the state according to law, when purchasing a first or second apartment. The payment is at a fixed rate of the value of the property and in some cases at a graduated rate.

B. mortgage interest-
The interest on the mortgage actually raises the price of the apartment, and it is also a current expense, which must be taken into account in the initial calculation of the ability to meet it.

third. Is the price linked to the index?
When purchasing from a contractor in the first stages of building an investment apartment, you should check whether the price is linked to the consumer index or to the construction input index, which greatly increases the price of the apartment.

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What are my expected costs after purchasing the apartment?
After we have purchased the apartment for investment, we need to plan how much money we want to spend on renovating the apartment or decorating it. In the case of buying an apartment from a contractor, you need to make sure exactly which extras are included in the price of the apartment and what you need to add more money to. We may choose to upgrade the basic package in which you get the apartment, which will increase the costs of the apartment. In addition, it is necessary to invest in air conditioning, electrical and sanitary products.

The fastest and most efficient way to find an apartment for investment is to find a professional brokerage office, which will help, explain and plan the buying process together with you. A brokerage office can help you find a selection of apartments that are accurate to your needs, without unnecessary wandering around and wasting time. The brokerage office has extensive knowledge of the area and acquaintances with the apartment sellers, which can facilitate and streamline the negotiations and lead to the final signing of the contract.

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