Top Tips for Bargains in the Property Purchasing Process
When buying a property in Israel, whether 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 the cause of saving you money whether that’s in providing legal advice relating to fully detailing the unexpected effects of certain clauses of a proposed contract or in consulting with you on how best and most effectively to approach the transaction more generally. Below we offer a few of our tips from our wider knowledge of the area to enable you to find the bargains to be had within such a major investment.
Legal Fees: When purchasing property from a contractor in Israel its usual for the purchaser to be expected 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 over this value and by retaining counsel such as Aviv Lazar & Co.
Index Linked Pricing: You can often find that contractors still building a new property will set the final price you need to pay on the basis of an index to reflect the impact of inflation. It may be possible to negotiate the use of an index more favourable to the buyer than that initially proposed by the contractor.
Tax: Are you also buying the furniture as well as the property? Do not in any circumstances include this in the contract of sale for the property. This will see the tax due on the property transaction extended to the furniture causing you unnecessary expense. Buy the furniture separately.
Forex Costs: If you’re an international investing in Israeli property, or an Israeli with foreign currency denominated wealth, you’re likely worried about the prospect of expensive currency exchange charges and poor exchange rates offered by banks. There are however plenty of possibilities to exchange into Israeli Shekels from your base currency at very low-cost and execute the exchange at the live mid-market rates. FinTech businesses are growing globally to facilitate this. In the EEA and the US, a good example might be Revolut, or more globally TransferWise. There are plenty of options and Aviv Lazar & Co. can consult with you to find the best solution to your particular needs and circumstances.
If you’re looking for a more fully comprehensive set of tips and advice for approaching your property purchase contact Aviv Lazar & Co. today.