Choosing between a brand-new apartment purchased directly from a developer and a second-hand apartment can be a complex process. It involves several key considerations that every buyer must weigh before deciding what to buy and where to buy it. So, what should you keep in mind? Those who opt for the first route and are interested in purchasing from a developer must first determine the project’s current stage: is it already under construction, or is it still only on paper before receiving a building permit? Purchasing during the pre-sale phase can reduce the price. Still, it is essential to factor in a long-term payment schedule, potential changes to planning and design, and the condition of the neighborhood's infrastructure where the project is being built.
This includes proximity to community and commercial centers, schools and kindergartens, and environmental and transportation planning. To avoid wasting time and money, it is advisable to check which bank is financing the project, ensure that all relevant details appear in the purchase contract, and be prepared for potential delays in receiving the keys. Buyers who choose an apartment that is already under construction gain the advantage of seeing it before purchase and can also assess the quality of construction and finishing work. A home that is nearly complete can be seen and quite literally “felt.” Timetables are also shorter and more precise, and the handover date is less likely to change dramatically. Still, these advantages do not eliminate the need to thoroughly examine the neighborhood, community facilities, transportation infrastructure (both public and private), and to assess whether the area is expected to continue developing in the coming years.
It may be little comfort moving into a beautiful apartment only to discover that one or two new towers will soon be built right next door. A second-hand apartment, by contrast, is a completely different story. In this case, everything, or nearly everything, is already known, from the quality of construction to the character of the neighborhood. There are no surprises, or at least there shouldn’t be. What you see is what you get. However, an older building requires a more thorough inspection of infrastructure, plumbing, and even the neighbors. And no less critical: renovations. An older apartment usually requires some renovation, which means consulting professionals to estimate the expected costs along the way to your dream home.
Written in collaboration with Mizrahi-Tefahot