To Buy On Paper Or Not To Buy, That is the Question

To Buy On Paper OR Not to Buy On Paper:

That is the Question

(These are the thoughts of CapitIL Sales Director Ben Levene.)

A crucial question to ask yourself is - how do I know if buying on paper is the right decision for me?

Do I buy now or do I buy something now that is going to be ready in 2-3 years?

Will buying on paper give me a headache or will it allow me to purchase exactly what I’m looking for?

Let us address how to make the right decision for each person. 

Why You Should Buy On Paper

Three main reasons to buy on paper are: 

- budget 

- customization 

- timing

I would say for most people who are looking in Katamon, Baka, and German Colony, it is mainly a budget question.

If you are struggling with your budget, buying on paper can offer better opportunities, and is something seriously to consider.

Secondly, if you are someone who wants to be involved in the planning and designing, buying on paper is definitely for you as it is more customizable than buying an existing apartment.

And lastly, if you are getting more money in a year or two and you want to pay off the apartment over two or three years, it really is a solid option. 

What You Need to be Aware Of

There are reasons that buying on paper may not be for you.

If you are the kind of person who needs to know every answer, buying on paper, in my opinion, is not for you.

Not every answer is always so clear and not always will you get all the information you might want before signing.

For example, you may not ask the right questions or the broker might not know exactly what they specifically need to know.

Although I always try to tell all the details, it is not always easy because you don't know what someone needs to know. In that case, if you are that kind of a perfectionist, I don't know if buying on paper is for you.

Secondly, if you do not have all the money to buy on paper now and you are going to be raising money over the next few years, you have to be aware of the inflation at the moment because of the building index.

This is something to seriously consider when buying on paper because you do not know 100% the set price.

Thirdly, at the end of a building project, there are always extra things to do including upgrading the kitchen and putting in carpentry.

These are things you should know about, but again, it's impossible to know 100% now what that will cost in a few years.

Meaning that if you want to have all your costs under control, come and look for an apartment to buy now in your desired location and do not wait for a project.

However, people who are willing to wait because they think they are going to get in on a great opportunity and are getting more bang for their buck, which does happen quite often, should take a serious look at buying on paper. 

Conclusion

No shoe fits all, and this choice is very individual.

There is no right or wrong decision, there is only what opportunity is right for you- there are great opportunities either way.

I have projects now in Katamon, German Colony, and Arnona which are great opportunities, but they are definitely not for everyone.

Some people should be buying second-hand, with apartments they can physically walk into because it will just make them that much more comfortable.

This is an extremely important and individual conversation to have with your broker to work out what is best for you.

This is a conversation I have many times a week with different clients and one I'm happy to have with you if you would like.

Contact CapitIL Real Estate Agency.

See available Jerusalem real estate here and new development projects here.