There are many ways to begin making a successful investment in Israel, but today I’d like to look at what is undoubtedly one of the best, often overlooked, high-value investment channels for our clients and that is the pre-pre sale.
This channel is often overlooked because there is little information available to investors in the initial stages of a developer's plans. However, before the developer has even set up his sales office, or started marketing a special benefit for the associate group, GPI is in the loop about these projects. Before these projects have gone to market and while the developer is still in the planning stages we are kept informed and that is a huge advantage to our clients.
The most successful deals in terms of yield and often also in terms of the landscape are the ones brought to our attention in advance, long before the first tractor has made tracks on the construction site.
A recent example is when a couple from London got in touch with us. Dreams of making an investment in Israel were always on the back burner for them, but the situation with the global pandemic strengthened their sense of belonging to Israel and their resolve to make their dream a reality. They wanted to find a centrally located vacation apartment, in close proximity to the sea that would replace their usual hotel vacation.
Most of the apartments already offered to them via real estate agents were ready-made apartments with expensive listing prices. These properties all required an additional investment for renovations and an adjustment to their dream lifestyle in Israel. That’s until GPI entered the process.
Because of our relationship with developers, we could introduce this London couple to one of the leading developers in Israel, pioneers in the construction industry, building one of the most interesting towers on Tel Aviv’s shoreline, a project that met their requirements and was more closely aligned with their budget.
Thanks in part to their time scales and not being immediately pressed for a ready-made apartment, we helped them select a project with a completion date of 4 years from signing.
In a situation like this, the payment plans are also favorable as they are required to put down a small amount in the initial stage, usually 20% of the total transaction for which they also have the advantage of being involved in the specifications of the build. So they secured an excellent sale price and a payment plan that allows them to pay the balance upon delivery of the apartment 4 years later.
During the time between finalizing the deal to receiving the keys, the value of this property and many others like it - will only increase. Additionally, because of the nature of our business, we will accompany and update them on every stage of the construction process, helping them find the right suppliers and professionals they need for every aspect of their property.
In conclusion, a GPI-engineered pre-pre sale allows us to put potential buyers directly in front of the right entrepreneurial company for them- without brokerage, filters, sales agents, or sales offices.
For help establishing what pre-pre sale projects are out there for you, and how much you will need to set the wheels in motion, get in touch here