Fact or Fallacy?

5 truths about purchasing real estate in Israel

By Shia Getter

1.      Falling in love with the first apartment you see is a strong sign you should buy it.

False. Even if you absolutely adore a place, you should familiarize yourself with what's out there before taking action. More information and more awareness make you a stronger, more tenacious buyer. Although it's so human and normal to get carried away on waves of heartfelt emotion, logic-based financial decisions will ultimately lead to more intelligent choices.

2.      A Note of Interest has no real legal significance.

False. A Note of Interest, which indicates your strong consideration of purchasing a particular property, is a legally binding contract with real ramifications. If you signed such a document, you are liable for the terms therein.

3.      Since apartments are priced per square meter, a lower price per square meter is clearly a better value.

Usually false. Often, a lower price per square meter means you are getting a lower value for your money. When there's a lower price, there's usually a reason. So if a place is cheaper than others in the area, take it as a sign red flag that it needs more investigation.

4.      The shorter the length of a mortgage, the better.

False. Less isn't always more. Just because one mortgage term extends over more years than another doesn't mean you're paying more for it in interest. An understanding of inflation shows us that the longer a mortgage is, the less you end up paying, if that mortgage isn't linked to the inflation rate. The amount that sounds so high now will be less significant in the future, as the money will be worth less and you'll (hopefully!) be earning more.

5.      Every buyer – even an experienced one – will benefit from engaging a mortgage broker or buyer's advocate.

True. Every buyer – no matter how practiced – benefits from having someone by his side, walking him through the complex process of an apartment purchase, from the initial contract phase to the mortgage stage, from the first and last inspections to final registration. Having an advocate guide you through this maze is the difference between having an expert defense attorney with you in the courtroom and just fighting for yourself. In Israel, knowing "the system" isn't just a perk. It's a prerequisite. Contact The Getter Group [email protected] or 718-473-3950.

This article is not a substitute for professional or legal advice. Author doesn't guarantee that the information contained herein is accurate, and does not assume any liability for any loss or damage caused by errors or inaccuracies in this article