Buying any new property, regardless of the size or where it’s located, means going through quite a detailed process before you can step through the door so it helps to be prepared. Property rules and regulations also differ per country so if you’re planning to invest in a new home on foreign soil, you might want to acquaint yourself with their specific processes.
If you’re planning to invest in real estate in Ashkelon in the near future, below are some of the additional costs that might crop up over and above the purchase price.
- Real Estate Agent Fees. If you’re purchasing a property that is still under construction, the construction company will usually take care of any real estate fees but if you have hired an agent to show you around specific properties yourself, they will more than likely charge a fee for this service.
- Money Conversion Costs. While most property prices might be listed in U.S dollars, you will be paying for the property in Shekels. Banks in Israel do charge a commission when they need to convert a foreign currency to Shekels and place it in an account so it might be helpful to pay attention to the exchange rate as you get closer to finalizing the property purchase.
- Engineering Costs. This is not something you generally need to pay for but many investors sometimes choose to get an engineer in to check the property before they move in. You will generally pay a call-out fee as well as a fee for their report. Costs vary.
- Purchase Tax. Property purchase tax is different for everyone as it works on a sliding scale that is dependent on the purchase price. You can access the latest tax rates here.
- Gas Deposit. You may need to pay a gas company for a new gas line, which can cost anything between 1500 to 2500 NIS.
- Mortgage Costs. If you’re choosing to take out a mortgage with one of the banks in Israel, they will charge you a fee to open a file with them. You will also incur notarial, registration of pledge and sometimes assessor fees.
- Legal Fees. Most development companies will include legal fees in the property price but if they haven’t you can bargain on paying between 0.5% – 2% of the price of the property.