So, I don't know how these meetings are supposed to go, but this one was not an immediate success.
It turns out that the sellers bought another place at the University on paper, and it won't be finished until September 2014, at the earliest. The realtor, E, asked us if we'd be willing to move into a bigger apartment (the one we have is way too small for us and a baby who is learning to walk) for a year and then move, but I refused. Moving is extremely stressful for me and I'm sick of living in badly made apartments with leaky windows, mold and noisy neighbors from all directions.
It also seems like they expected to get their asking price. We offered to go up a little bit and the fact is, we have approval from the bank. If I wanted to, I could write a check as soon as I brought the down payment over from the US. In theory, we're a safe bet - if you're serious about selling.
They also tried telling us that they had sunk themselves into debt to redo this house, but IMO, while that's something I would deal with as a Paamonim advisor, as a potential buyer, I don't really care. I feel bad for them, but still need a place to live and have a budget.
It seems to me that they need the money now to cover their debt and the new house, but don't want to move for another 18 mos, at least.
E didn't seem too disappointed by the meeting. E said they should sleep on it and he told me he would be in touch hopefully this or next week.
In the meantime, I am getting in touch with other realtors.
Wednesday, February 27, 2013
Monday, February 18, 2013
In the meantime
Off to Segulah today to look for the missing pieces in my mishoach manot and costumes. Segulah is one of the largest industrial areas in the neighborhood and right outside of Petach Tikva. Going to take a look at some furniture stores and get an idea of budgeting and deals.
Since we're moving from a 2 room apartment, we need...
EVERYTHING
OK, well not everything, but
2 couches for living room
L couch for den - or vice versa
trundle bed frame
Mita Yehudit for us
2 desks (one for each)
coffee table for living room
end table for coffee table for den
dining room table and chairs
more bookcases (specifically the wood ones sold at Ikea)
oven
stove
and that's just for starters - we also have in mind to get a microwave and a food processor
Since places in Israel like to give you deals if you get everything in one store, it might make sense to get whatever we can now. Will see how nice people are feeling.
Since we're moving from a 2 room apartment, we need...
EVERYTHING
OK, well not everything, but
2 couches for living room
L couch for den - or vice versa
trundle bed frame
Mita Yehudit for us
2 desks (one for each)
coffee table for living room
end table for coffee table for den
dining room table and chairs
more bookcases (specifically the wood ones sold at Ikea)
oven
stove
and that's just for starters - we also have in mind to get a microwave and a food processor
Since places in Israel like to give you deals if you get everything in one store, it might make sense to get whatever we can now. Will see how nice people are feeling.
Sunday, February 17, 2013
And it all begins
Today I called E and told him we want the house. The price is a little higher than what we want, but E is sure we'll work it out with the owners. We have an appointment for next week.
I also called the laywer, A. He's a family friend from S's side. I told him what we have in mind and he told me
1) Come to an agreement with the owners
2) Send in an engineer to check the place - so that the bank engineer doesn't give us a number lower than what we sign for, making us cough up the difference
3) Call A and he'll start the paperwork
More next week after we negotiate.
I also called the laywer, A. He's a family friend from S's side. I told him what we have in mind and he told me
1) Come to an agreement with the owners
2) Send in an engineer to check the place - so that the bank engineer doesn't give us a number lower than what we sign for, making us cough up the difference
3) Call A and he'll start the paperwork
More next week after we negotiate.
Second Round of Houses
After we got the pre-approval, I called another real estate agent, E. This one, a religious man, knew what I meant when I said I wanted to be close to my synagogue and was much easier to work with.. He found a few things for us to look at and we went this past Friday.
The first house was a similar structure to the house we had seen with C - the fixer upper, but was in very good shape and had been redone inside. The main floor had the living room, dining area and kitchen. The kitchen had limited counter space, but an unending supply of cabinets and room to work with the counter problem.
Up a half a floor was a den area and a large bedroom and 1 full bathroom.
Up another half floor were 3 bedrooms and up another half a floor was the laundry room and a large mirpeset (porch).
The house also had a roofed in porch. The backyard is small, but large enough for a Succah and a few trees.
The downsides - there is no bathtub, but there is room for one in one of the full baths without moving anything. The backyard is cemented over, but that can be ripped up.
We both loved the place.
The next two places we saw were very nice, but not nearly as what we were looking for as the first one. I could list thing, but in short, we had found our place.
The first house was a similar structure to the house we had seen with C - the fixer upper, but was in very good shape and had been redone inside. The main floor had the living room, dining area and kitchen. The kitchen had limited counter space, but an unending supply of cabinets and room to work with the counter problem.
Up a half a floor was a den area and a large bedroom and 1 full bathroom.
Up another half floor were 3 bedrooms and up another half a floor was the laundry room and a large mirpeset (porch).
The house also had a roofed in porch. The backyard is small, but large enough for a Succah and a few trees.
The downsides - there is no bathtub, but there is room for one in one of the full baths without moving anything. The backyard is cemented over, but that can be ripped up.
We both loved the place.
The next two places we saw were very nice, but not nearly as what we were looking for as the first one. I could list thing, but in short, we had found our place.
First trip to the bank
Some realtors make you do this step before you talk to them, but ours didn't care, so we did it after we saw a few houses.
A friend of ours from Ariel had a friend who was a mortgage guy at Mizrahi Tefachot in Airport City, so we called him and made an appointment to sit down with him.
First, we had to bring in S's last 3 paystubs - tlushim, as well as the last 3 months' worth of bank statements.
We told him our approximate house budget as well as how much we wanted to put down. He started inputting numbers, asking us questions from time to time - when we made Aliyah, etc.
Then we get to the mortgage plans available. The following information I am copying from http://www.mortgageisrael.com/showpage.asp?pageid=4
with my own edits based on what I learned.
A friend of ours from Ariel had a friend who was a mortgage guy at Mizrahi Tefachot in Airport City, so we called him and made an appointment to sit down with him.
First, we had to bring in S's last 3 paystubs - tlushim, as well as the last 3 months' worth of bank statements.
We told him our approximate house budget as well as how much we wanted to put down. He started inputting numbers, asking us questions from time to time - when we made Aliyah, etc.
Then we get to the mortgage plans available. The following information I am copying from http://www.mortgageisrael.com/showpage.asp?pageid=4
with my own edits based on what I learned.
A Shekel linked mortgage at fixed interest
A mortgage at a fixed interest rate linked to the consumer price index for a period of 4 to 30 Years - but they don't like to give them for that long because of the risk of hyperinflation. The bank charges high fees for early repayment.
A linked mortgage at variable interest
A mortgage at variable interest linked to the consumer price index,
which can be spread over an extended period of up to 32 years - and thus
making it possible to have lower monthly payments. The mortgage gets adjusted every 5 years. Also, there are no fees for early repayment
A linked mortgage at the Prime interest rate
A mortgage linked to the prime interest rate (based on the Bank of Israel's Rate) for a period of up to 25 years. Again, they don't like to give them for that long and charge fees for early repayment.
There are also mortgages linked to assorted foreign currencies and Oleh mortgages. As olim, we are entitled to about 100,000 NIS at a 3% rate that can be paid back at any time (early or on time) and is completely fixed.
Here's how it works. You create a mortgage plan combining these different plans in a way that works for you. Obviously, the adjustable-rate has the lowest interest, but is the riskiest.
One other thing: unlike the US, the banks here are very worried about monthly payments and will not give a 10 year fixed mortgage if they think the monthly payment will be too high (even if you have investments abroad). They would much rather give a 30 year mortgage - which they know you will repay in 20 years - with a reasonable monthly payment.
However, there is a way around this. You decide in advance how much you want to pay back in 5 years. Remember that Adjustable-Rate no fee repayment? Every year or so, you walk into the bank with a check, thereby shortening the span of the loan be repaying the money. So, if you put 10 years into an ARM and you repay it in 5 years, you just shortened your time by 5 years.
We finished at the bank and waited for a response. We got the approval 1 business day later.
First Round of Houses
Before we got an Ishur Ekroni (pre-approval), we were walking home from synagogue one night and passed by a realtor's office. In the center of Ariel there are a few realtors and my friend and I have made a point of checking the windows from time to time. This time I saw something interesting in the window - 5 rooms for 1.25 million, so I looked inside and the realtor, C, was in. I introduced myself and my husband and explained what we were looking for - 5 rooms for 1.2-ish.
Just a reminder, one room is the living room/kitchen, so a 5 room house should have 4 bedrooms.
He was very friendly, but a little on the oily side. He gave me his business card and we made a plan to see houses later that week.
My impressions of him: Used-car salesman. He also mentioned a house that was a "deal" because it needed work. He kept saying that everything was from heaven. On the other hand, though he noticed that my parents were there, but did not automatically assume that we could afford something very expensive.
Later that week we met up with him at night to look at houses after S came home from work.
The first house we saw was on HaShikma. It was a rowhouse with houses attached in either side. It had a large living room and a decent dining room, but virtually no counter space or cabinets in the kitchen. The bedrooms were also very small. Lastly, neither of the bathrooms had room for a tub without serious renovation. The upside - room under the house around back for an apartment, should we want to build one, and a large backyard. Also, the house was very nice - redone, pretty, etc.
The second house we saw needed serious work. It had not been taken care of, and needed spackling and paint. On the other hand, it was HUGE. The main floor had a kitchen and living room/dining room. The next floor up had 2 rooms, the floor above that had 2 rooms and the floor above that had 2 rooms. It also had a gigantic storage closet (machsan) outside in addition to a spacious backyard and front yard.
The downside was that the top floor had obvious water damage in the walls that was either from a bad roof or not airing the rooms out. If the roof is ok, then it's a quick fix. On the other hand, it is possible that the entire top floor was done poorly.
The owner also told me that his brother had just redone their roof. I didn't know what to make of that.
The upside of this house was the number of rooms and their size.
S and I decided that we liked it, but before we did anything, would have a roofer in addition to an engineer take a very good look at the roof.
The asking price was originally 1.2 million, but according to C, the guy lowered it to 1.15 mil to cover repairs. C also said that all it needed was a new coat of paint.
We decided to see what E, the next guy had to offer. But first, the bank.
Just a reminder, one room is the living room/kitchen, so a 5 room house should have 4 bedrooms.
He was very friendly, but a little on the oily side. He gave me his business card and we made a plan to see houses later that week.
My impressions of him: Used-car salesman. He also mentioned a house that was a "deal" because it needed work. He kept saying that everything was from heaven. On the other hand, though he noticed that my parents were there, but did not automatically assume that we could afford something very expensive.
Later that week we met up with him at night to look at houses after S came home from work.
The first house we saw was on HaShikma. It was a rowhouse with houses attached in either side. It had a large living room and a decent dining room, but virtually no counter space or cabinets in the kitchen. The bedrooms were also very small. Lastly, neither of the bathrooms had room for a tub without serious renovation. The upside - room under the house around back for an apartment, should we want to build one, and a large backyard. Also, the house was very nice - redone, pretty, etc.
The second house we saw needed serious work. It had not been taken care of, and needed spackling and paint. On the other hand, it was HUGE. The main floor had a kitchen and living room/dining room. The next floor up had 2 rooms, the floor above that had 2 rooms and the floor above that had 2 rooms. It also had a gigantic storage closet (machsan) outside in addition to a spacious backyard and front yard.
The downside was that the top floor had obvious water damage in the walls that was either from a bad roof or not airing the rooms out. If the roof is ok, then it's a quick fix. On the other hand, it is possible that the entire top floor was done poorly.
The owner also told me that his brother had just redone their roof. I didn't know what to make of that.
The upside of this house was the number of rooms and their size.
S and I decided that we liked it, but before we did anything, would have a roofer in addition to an engineer take a very good look at the roof.
The asking price was originally 1.2 million, but according to C, the guy lowered it to 1.15 mil to cover repairs. C also said that all it needed was a new coat of paint.
We decided to see what E, the next guy had to offer. But first, the bank.
Thursday, February 14, 2013
First steps...research
There is a website that every potential homeowner in Israel should know about.
http://www.madlan.co.il/ tells you what properties have sold for where you're looking. It tells you the final price as well as the size of the property to give you perspective.
The next place to look is http://www.yad2.co.il/ - though these prices are often a joke (asking price), they give you an idea of what's for sale.
New or Old?
We chose to buy "second hand" for a few reasons:
1) Location - the new stuff being built in Ariel isn't near our synagogue
2) Mistakes - if you buy new, then you are responsible for chasing down the builder every time there is a problem. Builders want to build new places and make money, not fix their old problems, so unless you know the people who built your house and trust them, you are taking a huge risk.
3) Price
I then talked to a few real estate people. The first one told me there was nothing in my price range in the size that I wanted, despite the fact that I had seen plenty of things that had sold recently on Madlan. The second one showed us two places, which I'll discuss in a later post. The third I will be meeting with tomorrow.
We also got the names of a few lawyers.
http://www.madlan.co.il/ tells you what properties have sold for where you're looking. It tells you the final price as well as the size of the property to give you perspective.
The next place to look is http://www.yad2.co.il/ - though these prices are often a joke (asking price), they give you an idea of what's for sale.
New or Old?
We chose to buy "second hand" for a few reasons:
1) Location - the new stuff being built in Ariel isn't near our synagogue
2) Mistakes - if you buy new, then you are responsible for chasing down the builder every time there is a problem. Builders want to build new places and make money, not fix their old problems, so unless you know the people who built your house and trust them, you are taking a huge risk.
3) Price
I then talked to a few real estate people. The first one told me there was nothing in my price range in the size that I wanted, despite the fact that I had seen plenty of things that had sold recently on Madlan. The second one showed us two places, which I'll discuss in a later post. The third I will be meeting with tomorrow.
We also got the names of a few lawyers.
Why now?
This blog is going to focus on buying and owning a house in Israel.
We are a late 20s family, one child, for now. Since we got married, we're lived in various Yechidot Diyur - efficiency apartments created by landlords who either subdivided existing apartments or added on to their own houses.
Until this year, you needed to cough up around 40% of the cost of a house for a down payment. There was an option of borrowing that money through EMI and having it rolled into your mortgage, leaving you with very high monthly payments. In short, you'd be able to afford the down payment, but every month would be a nightmare.
This year, the law changed. Now, you need between 20 and 30% for the down payment, but can't use a group like EMI. The new law also says that people who buy investment properties, ie second or third properties have to come up with 50% of the cost of the property.
The 20% peaked our interest, because while we don't have 40%, 20 is a much easier number to swallow.
We are a late 20s family, one child, for now. Since we got married, we're lived in various Yechidot Diyur - efficiency apartments created by landlords who either subdivided existing apartments or added on to their own houses.
Until this year, you needed to cough up around 40% of the cost of a house for a down payment. There was an option of borrowing that money through EMI and having it rolled into your mortgage, leaving you with very high monthly payments. In short, you'd be able to afford the down payment, but every month would be a nightmare.
This year, the law changed. Now, you need between 20 and 30% for the down payment, but can't use a group like EMI. The new law also says that people who buy investment properties, ie second or third properties have to come up with 50% of the cost of the property.
The 20% peaked our interest, because while we don't have 40%, 20 is a much easier number to swallow.
Subscribe to:
Comments (Atom)