How to buy a house in Israel

After a long, long process I though I would post my top 10 tips on how to purchase property in Israel from abroad. For any more information, please email.. and ill try to help.....

here we go.....

1) Be realistic about time frame

- Likely won’t be able to finalize purchase on a 10-14 day trip.
- Get everything set up to purchase from abroad, this is your mission.



2) Steps that must be taken prior to purchase ( i.e things to do on the trip that will et you purchase from abroad)

- Sign over Power of Attorney to your lawyer
- Mortgage broker – start application prior to trip
- Open a bank account- not necessarily bank you will have mortgage with
- Meet your engineer / property inspector
- Meet Vaad Klitah of yishuv, ask them if there are any preconditions to buy

3) Don’t underestimate amount you will need for a downpayment
- Expect down payments of 35-40% (especially over the “Green Line”)
- Unlike in the US/ Canada, its more downpayment that limits you

4) Understanding the sequence of events
- Putting an offer
- Contract negotiations
- Pre approval on mortgage BEFORE signing contract
- Inspection by engineer before signing contract
- Sign contract.. once you do tehre is no turning back


5) Specify how long from signing until the bank makes the payment
- Normally 30 days… try to double it!
- There is alot of paper work etc...



6) Property evaluation….
- Even after a written pre approval bank, there is a clause that they will only give you percentage based evaluator
- Get this done early (before signing if possible)
- Or have stipulation in contract

7 Be wary about buying into a project
- Many people have done it
- Most people find it extremely demanding doing it from there
- Benefit of payment in steps
- More for do it yourself type


8) Put aside money for fees…

a. Lawyers fee
b. Mortgage broker fees
c. maas rechisha
d. cost of inspection
e. cost of evaluation
f. cost of opening Tik for mortgage
g. property insurance ( requires credit rating, now from Canada as well)


9) Try meet people, email before trip…. To get a sense if they are people that fit your personality, you will be dependent on them!!

10) Rights lost: ( not so significant anymore)

- Maas rechisha reduction ( unless purchase within year)

- Government mortgage


Hope this helps.......

It is done.....

Well it only took about 4 months but B'H we finally got the mortgage and the house purchase has gone through. I know that Israel today is very unlike the Israel of 20 years ago, but let me tell you, the mortgage process is very "old school."

Anyway, B'H it got done, moving date still looking like August.

All welcome to visit.

The Mortgage #2

So...

after the mess with leumi, they finally offered us a 65% Mortgage with 20% down... not exactely what we were originally promised, but we were happy... end of story right? wrong!
they wanted a new powe r of attorney signed, so the sent me the documents which i had to sign at the Israeli consulate here in Montreal... i sent the package back to Leumi by FEDEX and they promptly signed for it and lost it!

so my first mortgage payment is due in 3 weeks and they wont let my lawyer sign the papers as they lost it!?!?

we are now waiting to hear back for further instructions.........

Beautiful Quebec

Anyone following the news here in Quebec, and the "reasonable accommodation" issue, knows that the issue of ani-semitism has once again become socially acceptable.

Recently in a small community just an hour north of Montreal , where many Chassidic Jews have set up their country homes, the "locals" have become quite agressive in their xenophobia. its not tha tI think they were ever not anti semitic, but they are certainly more vocal.. here is an quote from the town hall meeting... published in todays Montreal Gazette....

"Lise Provencher, of St. Jérôme, said immigrants are "buying their way in" to Quebec and that Jews are the worst because they're "the most powerful. ... It's always been said that the Jews are the trampoline of money in the world." After she spoke, the crowd applauded."

She did not say Hassidic Jews or orthodox Jews... just Jews.... and everyone applauds......

my reaction to this.... please see the last 2 posts and pictures below........
Its history... the cycle just repeats itself...... and peopel are still blind.....

for full story
http://www.canada.com/montrealgazette/news/story.html?id=21f1fe81-efc9-4d66-a608-afd1abf3dde1

and the view.......

Our House.. is a very very very nice house

We Signed on a house!!

Can't believe it...... we are very excited .. ( and adequately nervous)......

now on to the Mortgage signing......

yes, you must have a signed contract to get the mortgage... .. B'H for pre -approvals in writing!

The Mortgage

Here is how the Mortgage process has been so far...

Leumi: we will give you 70% and you only have to put 20% down to start

Me: Great!

Leumi: ummm.. no we really mean we will give you 60% and you have to put 40% down

Me: WHAAAT!

Leumi: ummmm we really mean we will give you 65% and you only have to put 20% down.

Me: Better but you promised me 70%!

Leumi: umm actually we can give you 65% and you really need to put 35% down.

Me: WHAT! #@#$##!!!!

Leumi: sorry.. This exhibit is closed........

Me: Bank Tefachot .. hello?

Tefachot: Thank you for applying, we will give you an answer in 48 hours.

Me ( 1 week later): Tefachot.. hello? hello?

... and all my friends here in Montreal are getting 95% mortgage approved in 12 hours... ..
AAAAARGH!