The price per occupant (mehir le mishtaken) is a program initiated by the State of Israel in order to provide a solution for young couples who do not have an apartment and will have the opportunity to buy an apartment at preferential prices. And this by marketing housing units to entrepreneurs by the Israel Land Authority and the approval of the territories by the Ministry of Construction and Housing.
Registration for the project lasts at least 28 days and takes place via a registration website when a computerized lottery is held.
The program is intended for married or common-law couples, single (also divorced and widowed) over the age of 35, in the case of single parenthood with at least one child, persons with disabilities aged 21 and over who do not own an apartment for at least 6 years and do not have rights on residential land/plot.
How much financing can be obtained with this program?
You can obtain a financing up to 75% of the amount if you are entitled to this program. If the apartment costs 1 million shekels, the financing can be up to 750 000 shekels.
However, the 75% financing is the actual price of the property and not its cost.
For example, if the apartment’s worth is 1.2 million shekels but it is sold for 1 million, then the buyer can mortgage it at market value and receive up to 75% financing of 1,200,000 NIS instead of NIS 1,000,000 and thus 900 000 NIS. The buyer will only have to add 100 000 shekels of his own funds.
Be aware that a 100 % financing is not possible. Buyers will have to provide at least 100 000 shekels.
For example, if you borrow 720,000 shekels (NIS) for an apartment with a cost of 1 million and a value of 1.2 million shekels, it represents 60% of the value and not 72% financing.
Recently, this topic has raised many questions: is it worth buying an apartment through this program or is it better to buy directly on the free market? The main advantage is the low price of the apartments. In addition, the eligible people receive a higher percentage of financing than usual but, at the same time, it is also impossible to know when the apartment will be ready (this procedure can take up to 5 years). Another disadvantage is that the final price of the apartment is not known in advance because there is still data not provided such as which floor for example, which material etc.
If you have any questions, contact us now for mortgage advices and details about your options.
Itay Mardix – Financial and Mortgage Advisor.
Phone number – 052-6007476
Office – 074-7419441
You can also visit us on our facebook page
Facebook.com/MardixFinance
בניית אתרים