Top Tips for Bargains in the Property Purchasing Process
When buying property in Israel, either as an Israeli or an international, it can be easy to look at some of the costs you’re presented with and think only of the expense. Here at Aviv Lazar&Co we’re dedicated to saving you money -- whether that’s by providing legal advice, fully detailing the unexpected effects of certain clauses of a proposed contract, or by consulting with you on how to most effectively approach a transaction. Here we offer a few tips, accumulated through years of experience in the field, to help you find the best ways to save on such a major investment.
1. Legal Fees
When purchasing property from a contractor in Israel, the purchaser should expect to foot the legal bill of the contractor. This can often amount to 1.5% of the purchase value plus VAT at 17%. It is not, however, out of bounds in Israel to negotiate this value by retaining counsel such as Aviv Lazar&Co.
2. Index Linked Pricing
You will often find that contractors in the midst of building a new property will set the final price on the basis of an index, to reflect the impact of inflation. It may be possible to negotiate the use of an index more favorably to the buyer than what is initially proposed by the contractor.
3. Tax
Are you also planning on buying furniture in addition the property? Do not, under any circumstances, include this in the contract of sale for the property: the tax due on the property transaction will be extended to the furniture, causing you unnecessary expenses. Buy the furniture separately.
4. Forex Costs
If you’re an international investing in Israeli property, or an Israeli with foreign currency denominated wealth, you’re likely worried about expensive currency exchange charges or poor exchange rates. There are, however, plenty of possibilities for exchanging into Israeli Shekels from your base currency at a low cost and for executing the exchange at the live mid-market rates; FinTech businesses are growing globally to facilitate this exchange process. In the EEA and the US, companies like Revolut and TransferWise have been established. There are plenty of options, and Aviv Lazar&Co can consult with you to find the best solution to suit your particular needs and circumstances.
If you’re looking for a more comprehensive set of tips and in-depth legal advice for approaching your property purchase feel free to contact us at Aviv Lazar&Co today.