Tailor-Made Real Estate Investments
Minimum Risk, Maximum Profit.
Tailor-Made Real Estate Investments
Minimum Risk, Maximum Profit.
A Residential Apartment or an Investment Property?
The key lies in investing wisely.
The real estate market is known for its increasing demand against a limited supply, making real estate investments potentially more profitable than other types. However, success depends on making the right, cautious decisions.The key principle in real estate transactions is to perfectly match the investor’s resources and their ability to repay monthly.
What makes a real estate deal attractive and profitable is investing in locations with high potential for price increases, and in projects under construction or in redevelopment phases, as their value significantly rises upon completion.
AREKA’s expertise stems from years of experience in selecting the right and profitable deals in developing areas with significant price increase potential and acquiring properties at reduced prices through strong purchasing power to negotiate with contractors.
AREKA emphasizes personalization for each investor, building the most suitable deal to maximize their investment profit.
Successful Projects
Our Partners
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The value of the alternative apartment I bought increased by over a million ILS, allowing us to buy a five-room apartment without a mortgage at all, and still have a surplus!
Feedback From Costumers
- "We lived in a small, cramped three-room apartment in Jerusalem without a mortgage. We really wanted to move to a larger apartment, but the price gap was daunting; we needed to add between 700-800 thousand ILS with a monthly mortgage repayment of 4,000 ILS. Since we couldn't afford that, we didn't know what to do. We approached AREKA to consult with real estate experts Yerucham Ahrman and Aharon Goodman. They sat with us, went over all the data, and suggested we postpone selling our apartment for a few years and buy an alternative apartment in a sought-after project scheduled for occupancy in about three years. And so we did. Meanwhile, over the past three years, the value of our apartment increased by several hundred thousand ILS, and simultaneously, the value of the alternative apartment I bought increased by over a million ILS, allowing us to buy a five-room apartment without a mortgage at all, and still have a surplus! So we could invest an additional amount for future profit. Thank you to Yerucham and Aharon for doing an exceptional job!"
Knowledge Center for the Beginning Investor
Ask the experts everything you wanted to know about the world of real estate investment
The common expenses are the cost of the property, brokerage fees, attorney fees, and an 8% purchase tax on a second apartment. From the profit, after deducting expenses, in some cases there is also a construction index that needs to be added to the contractor (in most cases, we manage to avoid it!). It’s always advisable to check the option to cancel it, even at a financial cost, if the financial cost is less than the average annual amount. Also, in a case of taking a mortgage, there is the cost of interest.
According to law, it should be paid within 60 days from the signing of the agreement. For a deferred payment option, in the case of an alternative apartment, it’s 18 months from purchase or, alternatively, for an off-plan apartment, it’s one year from occupancy. If you sold a primary residence, the tax is deferred. For each additional apartment, if 40% of the apartment’s value hasn’t been paid as per Section 51, payment can be deferred until occupancy. Interest and indexation costs are added for all deferrals.
In the case of a single apartment, if held for 18 months from occupancy, there’s an exemption from capital gains tax. When selling a second apartment, capital gains tax applies, which is the profit minus all expenses, adjusted for inflation. It’s recommended to check with an accountant what can be considered as deductible expenses, such as donations under Section 46, credit points, and the like.
