Reply To: How do people afford apartments in Israel?

Home Forums Eretz Yisroel How do people afford apartments in Israel? Reply To: How do people afford apartments in Israel?

#1218518
assurnet
Participant

Geordie613 – from what I’m aware it’s not so much cheaper to buy on paper. In fact, because it’s a brand new apartment and you can customize a lot of stuff, depending on where an alternative existing apartment is it could possibly even be more expensive. However you do save money on any potential renovations you’d have to do on an existing place.

Most projects nowadays are insured by a major Israeli bank in order to guarantee the buyer’s money in case the contractor goes belly-up. Additionally the payments are made are made in installments based on progress in the construction – i.e. you make a payment after they pour the concrete, another payment when they do the wiring, etc. That way if the construction isn’t going according to schedule they don’t get paid.

That being said there is a big down payment up front and the entire time until you get the keys you are paying for construction as well as rent wherever you’re currently living.