How To Safeguard Your Budget When Buying Your Apartment in Israel
One of the problems for investors who purchase an apartment in Israel is the transition from working with the developer who sold them the apartment to working with the contractor who is carrying out the construction.
The developer promotes & sells the apartments while the contractor is responsible for the construction and schedules. The developer helps the client visualize the final product with glossy brochures and impressive presentations, however from the moment of signing, the client's next point of contact is the contractor, whose primary focus is the schedules and making good on, or shortening the construction time. Unfortunately, the client is at the bottom of the contractor’s list of priorities.
Often, the transition the client has to make between these two companies creates confusion. Occasionally, the clients expectations do not meet the reality on the ground and in order to receive what was seen in the developers brochure requires structural changes and an additional payment.
Real estate developers spend many hours planning projects with different types of apartments to suit different target audiences, yet often this does not prevent the buyers from investing a small fortune in changes and spec upgrades to the contractor. This situation creates frustration and confusion, especially for the investor who is based abroad, does not speak Hebrew and is unfamiliar with Israeli business practices.
Understandably, they cannot understand why all of a sudden any change in specifications should carry an extra financial cost and why the point of contact should be so brusque and surly to deal with.
Here are some some of our tips for managing the purchasing process in Israel and
preventing budget overruns:
- Pay close attention to the design and specifications of the apartment as they are listed in the purchase contract. The more tailored they are to the clients needs, the fewer the potential changes.
- Do your research on the suppliers listed on the project, make sure that they are suitable for you and if not, negotiate with the developer for alternatives.
- Allow a professional to go over the program and offer suggestions for upgrading and improving spaces early on in the process. In our experience, the temptations to make tweaks or changes happen when the client has already signed, and changes that are not planned well in advance will result in greater expense during execution.
- After you have defined a budget, make sure your final budget includes a deviation of 3%.
- Smile, you’re getting closer to your dream in Israel
Alternatively, instead of braving the process alone, find out how we can partner up with you here, ensuring a seamless, glitch-free journey to your dream home.