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.

In principle, an exemption from capital gains tax is not granted when the seller owns more than one apartment. However, when it comes to an apartment purchased to replace an existing one, an exemption from the tax can be obtained if the seller sells the first apartment within 18 months from the date of purchasing the replacement apartment, or within a year from delivery of the apartment if it was purchased from a contractor.

Pre-sale deals are the first transactions a contractor sells at discounted prices. When a contractor starts selling apartments and wants to show a large number of sales in a short period, usually for bank financing purposes. It’s important to note that contractors tend to call every deal they sell a pre-sale, though it’s not necessarily accurate. Our expertise is in verifying that these are indeed genuine presale deals where the apartment prices are significantly lower than the market prices in the area.

Indeed, you can, but at AREKA, we tailor the investment according to the purchaser’s capabilities, such as repayment ability, proper tax planning, etc. Another point is that for most buyers, even after brokerage fees, the deal will be significantly more profitable than purchasing an apartment on Yad 2.
And of course, at AREKA, we check the investment’s feasibility from all aspects based on our extensive experience and obtain prices lower than market prices thanks to brokering a large number of apartments.

If there is currently a lottery, it’s worth joining, why not.
It’s true that many families who won the “Price for the Resident” had a very profitable deal.
However, there’s another side to the coin: many families lost a lot of money because, while waiting to win, prices rose in the meantime, and they gave up after several attempts and had to buy an apartment at a higher price.
Therefore, it’s important to carefully consider this matter, as the chances of winning are not high relative to the number of registrants.