The glossy brochures promise a dream: a brand-new apartment, built to modern standards, at a price lower than today’s market rate. While buying “on paper” (al ha’niyar) can be a brilliant financial move, it can also be a path to ruin for the unprepared. The difference between success and failure is knowing what you’re really buying into.
You’re not just buying a future apartment; you’re investing in a construction project. The main appeal is financial. You often secure the property at a pre-construction price, and if the market rises during the 2-3 years of building, you’ve built instant equity by the time you get the key. You also get a brand-new home with modern amenities and the ability to make some customizations.
However, the risks are significant. The biggest is delays. Construction timelines in Israel are notoriously fluid, and a two-year project can easily become a four-year one, tying up your capital. There’s also the risk of the developer going bankrupt, although there are legal protections like bank guarantees to mitigate this. Finally, the finished product may not match the glossy brochure. You are buying a promise, and you need a rock-solid contract reviewed by an expert lawyer to ensure that promise is kept, specifying everything from the type of floor tiles to the brand of the air conditioner.
Too Long; Didn’t Read
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The main benefit is financial: securing a property at a below-market price and gaining equity as the property is built.
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Major risks include significant construction delays and the possibility of the developer facing financial trouble.
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A highly detailed legal contract, reviewed by your own lawyer, is essential to protect your investment and ensure the final quality.
