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Is Purchasing on Paper Better?

Buying properties “on paper”, as is the popular slang, carries with it certain advantages and disadvantages. These new properties are usually less expensive than second hand homes. In the USA, new home projects might be 20-25% cheaper than second hand homes. I see in Israel that the percentage in savings is less; more like a 10-18% saving in general. Keep in mind that the property values in areas like Beit Shemesh and Jerusalem are climbing near 10 percent a year, then the actual savings are greater than these figures as years go by. See this article on housing prices .

Another big advantage of buying on paper is you can choose what special changes and added features you want to have in your new home. Once you move into a home and start to make these changes, there is lots of dust, noise and inconvenience. Sometimes you have to rent an apartment until construction is completed. While buying directly from the builder involves negotiations and design choices, it may be worthwhile. See our Services for Buyers, we can help!

In addition, since new construction is usable over a 2 to 3 year period, the actual resale value of the property will rise as the project finishes. This is often an excellent investment opportunity. Of course, please consult with your lawyer and accountant if there are any negative consequences to selling your property before or after the final payment to the contractor.

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