Ever heard about buying apartments at a discount in Israel and wondered, “What’s the catch?” Well, you’re not alone. Let’s dive in together and understand exactly how these discounted apartment programs work in Israel—no complicated jargon, promise!
What’s a Discounted Apartment Program, Anyway?
In Israel, the government offers special programs to help people buy apartments at lower prices. You might have heard of the old “Buyer’s Price” program—this new program called “Discounted Apartments” works a bit differently.
Understanding the Pricing (Easy Version)
First, if you visit the government website and see the listed price for an apartment, remember:
- This price doesn’t include VAT (Value Added Tax).
- You need to add VAT to get the actual base price.
So, step one is adding VAT to the listed price. Got it? Awesome.
Calculating Your Actual Discount
After you’ve figured out the real price (with VAT), the fun part begins—calculating your discount. There are two possible ways your discount can be calculated:
Option 1: Percentage-Based Discount
- You could get a discount between 18% to 23% off the full price (VAT included).
Let’s say your apartment costs around 1,000,000 shekels including VAT. With a percentage discount, you’d save between 180,000 and 230,000 shekels. Pretty great, right?
Option 2: Fixed Amount Discount
- Alternatively, your discount might be a fixed amount, typically ranging from 280,000 to 550,000 shekels off the original price (VAT included).
Using the same 1,000,000 shekel apartment example, a fixed discount could lower the price down to about 450,000 to 720,000 shekels!
Important Note: You Can’t Predict Your Exact Discount Early
Here’s something crucial to understand:
- The exact discount only becomes clear AFTER you win the right to buy the apartment.
- Your final discount depends on various factors such as:
- The exact apartment you choose
- The city or neighborhood of the project
- The specific building company developing the project
In short, you won’t know exactly how much you’re saving until you’ve secured your apartment. No calculator or early prediction can give you this precise number ahead of time—so keep that in mind!
Tips Before You Jump In (Actionable Steps)
Here are a few quick tips to make your life easier:
- Always factor in VAT when checking initial prices.
- Stay flexible—remember, your exact savings are only revealed at the end.
- Be prepared financially; discounts are amazing but you’ll still need funding and possibly a mortgage.
Too Long; Didn’t Read (TL;DR)
- Government apartment discounts in Israel have two methods: percentage discounts (18%-23%) or fixed discounts (280k-550k shekels).
- Prices listed initially exclude VAT—remember to add it!
- The exact savings depend on the project, city, and builder, revealed only after securing the apartment.
- Always plan your finances with these points in mind.
Feeling confident now? Good luck finding your dream apartment!
