Many young couples in Israel, as well as a significant number of individuals, dream of owning their own home. A place where they can invest, nurture, and design according to their tastes—a home where they can raise a family. However, the reality often paints a different picture, with the challenges of purchasing a home becoming increasingly apparent in recent years. To encourage these young people to buy homes despite the difficulties and to help them realize their dream, the state currently offers several schemes to make this possible. One of these is called “Dira Be’Hanacha” (Apartment at a Discount). 

Understanding “Dira Be’Hanacha”

The registration for Dira Be’Hanacha is done through the Ministry of Construction and Housing’s website. This extensive project includes several options for purchasing an apartment, offered by the Ministry of Construction and Housing as well as the Israel Land Authority (Rami). These options include renting an apartment or purchasing apartments at subsidized costs and beneficial plans that significantly ease the process for buyers and help them acquire an apartment under unique conditions.

Potential Pitfalls

However, not everything is rosy. Under the Dira Be’Hanacha initiative, there are quite a few unfinished construction projects, and there may be situations where buyers have to pay both rent and mortgage, among other expenses. Therefore, it is crucial to understand the differences between the various plans and arrangements, examine the advantages and disadvantages, and above all, properly understand the real estate market.

The Relationship and Differences Between Dira Be’Hanacha and Mechir Lemishtaken

The Dira Be’Hanacha project, as mentioned, includes several different paths and arrangements for renting or purchasing an apartment to allow eligible individuals to also enjoy special conditions. Within the broader project itself, one can find Mechir Lemishtaken, Target Price, Reduced Price, and Dira Lehashkir. Mechir Lemishtaken is the flagship project of Dira Be’Hanacha, aimed at enabling all housing-deprived individuals in Israel, who have not yet succeeded in purchasing their own apartment, to do so at an attractive price and excellent conditions. This track is intended for married couples, common-law partners, singles, divorcees, or widows over the age of 35, as well as single parents with a minor child living with them and in their custody. Through this program, eligible individuals can enjoy significant discounts on apartment purchases. This is made possible thanks to subsidies given to developers during land purchases, which can be applied to the apartments themselves when sold. The discounts offered through the Mechir Lemishtaken program can be quite substantial, allowing buyers to purchase apartments at prices hundreds of thousands of shekels below their market value.

Eligibility and Obtaining a Certificate of Eligibility

The Dira Be’Hanacha project is offered to those without housing and, in certain circumstances, also relevant to those looking to improve their housing situation. Those without housing are individuals without an apartment in their name (or, not more than one-third of an apartment in their name) in the last three years and those who have not rented a protected tenancy apartment during this time. These are also individuals without the right to build a housing unit on a farm located in an agricultural area, people without rights in an apartment currently under construction, or those who do not have a right to an apartment within a purchasing group. To obtain the eligibility certificate for Dira Be’Hanacha, one must apply online through the website of one of the authorized companies to issue it: Milbar, Milgam, or Alonim. This can also be done physically at one of the companies’ branches. The cost of issuing the eligibility certificate is about 240 NIS, and it has a certain validity period, which can be extended at no extra charge on the company’s website.

The Most Sought-After Cities in the Project

As of March 2022, there are over 10,000 apartments within the Dira Be’Hanacha project. These apartments are spread throughout the country, from the north to the south, with the top ten cities in terms of the number of relevant projects for the program being: Lod, Acre, Dimona, Ofakim, Jerusalem, Tiberias, Beit She’an, Eilat, Afula, and Beersheba (with Dimona having the largest number of projects, totaling about 16 within the city itself). The most sought-after cities, in terms of demand, are very central cities, close to major cities, and cities that offer high-level education, employment, culture, and more. Jerusalem and Beersheba offer numerous opportunities, which is why many seek projects there. Tiberias is preferred by many religious couples, as is Beit She’an. Recently, cities like Acre, which seems to be experiencing a beautiful renaissance, and Dimona, which has been receiving quite a bit of positive attention in recent years, are also enjoying renewed popularity.

The Process After Winning

Have you registered for the Dira Be’Hanacha project and received a notification of winning via email or SMS? Congratulations! The first step after winning is to wait for the building permit to be granted. Obtaining this permit depends on the preparation of a detailed building plan by the contractor, submission of required documents, and waiting for a discussion at the local committee responsible for this. The next step involves checking financing options for the apartment and ensuring mortgage eligibility. This is the time to work meticulously and thoroughly examine the existing financing plans to find the most suitable one. As winners of an apartment at a discount, you can enjoy receiving a mortgage under favorable conditions and financing up to 90% of the total apartment cost. The next step is to choose the apartment itself within the project and sign the purchase contract with the contractor.

In summary, the Dira Be’Hanacha project, and its flagship initiative Mechir Lemishtaken, provide significant opportunities for young couples and individuals to purchase homes at more affordable rates. Understanding the nuances, eligibility criteria, and the detailed process is crucial to making the most of these programs and securing a home under favorable conditions.

Frequently Asked Questions (FAQs) about Dira Be’Hanacha

What is Dira Be’Hanacha?

Dira Be’Hanacha is a comprehensive project by the Ministry of Construction and Housing, offering various tracks and arrangements for renting or purchasing an apartment at a discounted price. This initiative aims to help eligible individuals, including young couples and singles, to acquire a home under favorable conditions.

Who is eligible for Dira Be’Hanacha?

Eligibility is primarily for those without a home. This includes individuals without an apartment in their name (or not more than one-third of an apartment in their name) in the last three years. It also applies to those who have not rented a protected tenancy apartment during this time, do not have the right to build a housing unit on a farm, do not have rights in an apartment under construction, and do not belong to a purchasing group.

How do I obtain a Certificate of Eligibility?

To obtain a Certificate of Eligibility, you must apply online through the website of one of the authorized companies: Milbar, Milgam, or Alonim. The process can also be done physically at one of the companies’ branches. The cost is approximately 240 NIS, and the certificate has a specific validity period, which can be extended without extra charge on the company’s website.

What is the difference between Dira Be’Hanacha and Mechir Lemishtaken?

Mechir Lemishtaken is the flagship project under Dira Be’Hanacha. It aims to provide housing-deprived individuals in Israel with an opportunity to purchase a home at an attractive price and excellent conditions. This project is open to married couples, common-law partners, singles, divorcees, or widows over 35, and single parents with a minor child living with them. The program offers significant discounts on apartment purchases, made possible through subsidies to developers during land purchases.

Which cities are most sought-after in the Dira Be’Hanacha project?

As of March 2022, the project includes over 10,000 apartments across the country. The top ten cities with the most relevant projects are Lod, Acre, Dimona, Ofakim, Jerusalem, Tiberias, Beit She’an, Eilat, Afula, and Beersheba. The most sought-after cities are central ones close to major cities, offering high-level education, employment, and cultural opportunities.

What is the process after winning an apartment in the Dira Be’Hanacha project?

After winning, you will receive a notification via email or SMS. The next steps involve waiting for the building permit, checking financing options, and ensuring mortgage eligibility. Winners can receive a mortgage under favorable conditions, financing up to 90% of the apartment’s total cost. Finally, you need to choose the apartment within the project and sign the purchase contract with the contractor.

What potential issues should I be aware of in the Dira Be’Hanacha project?

There are challenges such as unfinished construction projects, situations where buyers might need to pay both rent and mortgage, and other expenses. It’s crucial to understand the differences between various tracks and arrangements, assess the advantages and disadvantages, and properly understand the real estate market to make an informed decision.