Tips for Buying an Apartment

 
For the vast majority of people, buying an apartment is the biggest investment they'll make in their lives. A mortgage is one of the largest monthly expenses.
 
Here are some tips and points to consider when buying an apartment:
 

Apartment Search:

It's highly recommended to use real estate agents when searching for apartments. They will do the initial screening for you, and you can get a lot of help from them in understanding the value of the apartment you're about to buy, such as:
- Apartment prices in different areas of the city
- Price differences between floors of the building or air directions
- It's recommended to visit the apartment at different hours, during daylight and at night
- If it's on a main street or near one, be sure to open the apartment windows and check if the noise is tolerable - On Saturdays or early morning hours, apartments on main streets will be quieter, so it's recommended to visit during peak hours as well
 
The general appearance of the entrance, yard, and stairwell can indicate the level of care by the building's residents. Proximity to cellular antennas or large transformers of the electric company reduces the apartment's value. Proximity to intersections, bus stops, or loading/unloading areas of large supermarkets also reduces the value of nearby apartments.
 
 

Preferred Floor in the Building:

In a building with an elevator, the first floor is considered significantly less desirable, and usually in a new building, this apartment remains unsold last. However, in a building without an elevator, apartments on the first and second floors are considered the best.
 

 Apartment Air Directions:

West and south are considered the most desirable. West for the air, south for light and sun entering the apartment in winter months. In summer months, the angle of the sun's rays changes and only light enters the apartment. It's common for a 2-room apartment to have at least two air directions, and for a 3-room apartment and above to have at least three air directions. "Sandwich" apartments (apartments with two opposite directions, e.g., north-south or east-west) are considered less desirable, as they have more shared wall space.
 
It's recommended to have as few shared walls with adjacent apartments as possible.
 
 

Apartment Orientation: Front or Back?

On a quiet street, front-facing apartments will sell for a significantly higher price than rear-facing ones. However, on a main street or with a green and open rear, a rear-facing apartment is preferred.
 
 

Ceiling Height:

Apartments with high ceilings are more desirable, typically characterized by Bauhaus buildings. Their advantage is in good ventilation, and the apartment appears less cramped.
 
 

Renovated Apartment:

In many cases in desirable areas, renovated apartments will sell at a price difference higher than the cost invested in renovating the apartment. This doesn't suit everyone, and especially if the renovation doesn't meet their needs, it's better to buy a neglected apartment and renovate it according to your needs. This way you'll benefit twice: once in the price difference and of course in renovating the apartment to your taste. The disadvantage in this case is clear: exhausting dealings with professionals. Therefore, it's highly recommended to use tips from the real estate agent regarding professionals, architects, renovators, etc.
 
 

Checking the Neighbors in the Building:

It's highly recommended to check the neighbors in adjacent apartments in the building and even in the adjacent building. True, the day after you buy your apartment there's no guarantee that residents of nearby apartments won't change, but if it's known in advance about a problematic neighbor in an adjacent apartment, then it's better not to put a healthy head in a sick bed. The easiest way to check the issue of residents is simply to knock on doors, tell neighbors that you're about to purchase an apartment in the building and would be happy to meet them. You'll be surprised how much information you can get.
 
 

Check with the Municipality:

At least in Tel Aviv, and as far as I know in other cities as well, you can go to the city archive and check before buying, the status of the apartment. For example: that the apartment indeed appears originally as an apartment, and not as a storage room, shop, office, etc. (usually found in ground floor or basement apartments), building deviations, illegal construction, complaints from neighbors in adjacent apartments, permits given to the building, such as offices or businesses that may cause nuisance.
 
 

 Land Registry (Tabu) Check:

It's recommended to obtain a land registry extract of the apartment in advance and consult with a lawyer to avoid unnecessary headaches. In the land registry extract, pay attention that the registration is clean and there are no liens except for mortgage liens, that the apartment is indeed registered under the name from whom you are buying, verify that there are no cautionary notes in favor of additional parties. Also, verify that the apartment is registered as an apartment and not as a shop, office, storage, etc.
 
 

Mortgage:

It's recommended to check with at least three different banks the mortgage terms, the amount of mortgage the bank is willing to give, at what interest rate, and under what repayment terms. There's no need to run around, banks work in close cooperation with real estate agents, you just need to ask the agent to give your phone number to three different banks and bank representatives will contact you personally.
 
 

Mortgage Amount:

Banks usually give a mortgage with a monthly repayment of one-third of the monthly salary. If it's a couple, then of course the mortgage amount is a monthly repayment of one-third of both spouses' salaries. You can take a higher mortgage for an apartment if you have another property to pledge, I don't recommend doing this unless it's a loan for a fixed and short period, what's called a "balloon" loan. Such a loan is used in case you've found your dream apartment but haven't sold your current apartment yet, the bank allows you to take a higher loan which you'll repay once a buyer is found for your apartment.
 
 

Buying Apartments from a Contractor:

Purchasing a new apartment from a contractor or a purchase group is more complex than buying a second-hand apartment where you see exactly what you're buying. When buying a new apartment, you usually need to pay a brokerage fee also to the contractor's lawyer. I recommend not to save and also consult a lawyer recommended to you by friends, agents, or from previous acquaintance. In any case, you must consult a lawyer whose main activity is real estate. Under no circumstances be tempted to accept a discount and advance payments not according to the Sales Law. Check carefully what the net area of the apartment is, usually in new construction they tend to advertise gross apartment areas. Therefore, you need to insist on getting details on the net apartment area only, in addition to requesting the apartment plan with dimensions so that you can measure the plan and see that it matches what was promised.
 
Good luck!
 
Allon Dahan - Society Real Estate