The subject seems beyond the reach of the average investor or buyer. Too complicated, too far from our usual reference points, the subject nevertheless deserves simple clarification to deliver surprising and valuable information.
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THE PURCHASE OF 'MOU'HSHAR' LAND HAS BECOME PARTICULARLYPROFITABLE SINCE THE HOUSING CRISIS BEGANTO MAKE HEADLINES, AND THEREFORETO BECOME A WEAPONPOLITICAL IN THE HANDS OF THOSE IN POWER
"This land is specific and increasingly rare, particularly due to the limited size of our country and the real estate projects that have spread over the last decade, especially along the coast"
"A real gem for buyers of this type of land who can count on the bulldozer effect represented by a municipal machine determined to transform a rural area into an urban area"
"THE TRADITIONAL INVESTOR PREFERS TO INVESTGENERALLY AT THE BEGINNINGOF THE PROCESS, EVEN IF IT MEANSSELLING AFTER THREE OR FOUR YEARS AND THEPATIENT OWNER WILLRATHER TURN TOAN INVESTMENT AT THE ENDOF THE PROCESS WHICH WILLALLOW HIM TO OBTAIN ANAPARTMENT, WELLBELOW THE MARKETPRICE, ABOUT 60%GENERALLY."
"The French know very little about this typically Israeli product. But you just need to explain things to arouse their enthusiasm"
Investors looking for a juicy financial windfall or patient owners?
"Both scenarios exist but these two profiles don't invest at the same time in the process. The traditional investor generally prefers to invest at the beginning of the process, even if it means selling after three or four years, while the patient owner will rather turn to an investment at the end of the process which will allow him to obtain an apartment, well below the market price, about 60% generally. He will have to wait on average three more years than if he had bought off-plan, which is very interesting for people who are not in a hurry".
"The process required to reach construction is very long. Between ten to twenty years in total, with many sequential stages, because you have to go through different commissions and committees at the local or national level"
"If we consider the case of a land buyer who only wants to make a financial profit, the latter will watch for the right moment in the process that will increase the value of his land in order to be able to sell it and thus realize a significant capital gain. Sometimes four or five years will be enough to double your investment!".
But then what are the risks, knowing that the time factor remains the main unknown of the operation?
"We sometimes receive disappointed stock market investors. Indeed, in the stock market, you can always lose the capital of a stock. However, in the sector that interests us, the land really exists. It is registered in the buyer's name in the land registry, so whatever his objective (sell it for capital gain or keep it to build), the latter will never be a loser, especially when we know that there is no land in Israel whose value has decreased. Stagnated yes, but decreased never!".
"The government can no longer refuse to grant building permits to projects such as 'Hof Té'hélet or Glilot Sud which, between them, represent more than 20,000 housing units! If this were to reach the press, it could cause massive demonstrations. For the government, granting building permits represents its only tool to show that it is acting to reduce the housing crisis"
