A number of concepts that anyone interested in real estate investing should be familiar with

Real estate investments Globes

If you are considering an interesting real estate investment, it is most important to be accompanied by a professional who examines the process with a professional eye, and takes into account countless important parameters.

Here are seven basic concepts that are important for you to know:

Land Option

This is a right to purchase granted by the owner of the property. That is, a land option is a type of contract that must be given in writing and allows a transaction to be closed according to a predetermined amount and date (possibly even before the date). We should also note that the sale of the option leads to another important term – “unique option”. In this case, a host of tax discounts are obtained. The need to pay sales tax, capital gains tax and purchase tax is avoided. Why? To encourage a secondary market. The realization of the purchase is limited to a period of two years. What else is worth knowing about this topic? The option is transferable, and if the option is granted, the property owner is obligated to meet specified conditions.

Obtaining a Building Permit and Drawing

If you are interested in building your home on your lot, or if you are looking to demolish or simply make changes to the property, you are going to have to deal with obtaining a building permit. This is a document that the local planning and building committee is responsible for providing, in accordance with a variety of conditions that the master plan dictates. The document must contain a sketch (gramoshka) alongside a verbal description. The sketch is a map showing a scale of 1:100 and is divided into 3 main parts:

  1. All details regarding the project, including the entities involved (architect, engineer, parking spaces, property rights holders, etc.).
  2. A table showing the area of ​​the building (according to the desired division and the existing areas).
  3. A topographic map of the lot, including sections and an environmental diagram.

Flat-rate agreement

A flat-rate contract is an agreement between the contractor and the customer, which determines a final, binding and known price for the transaction. The price will be determined by the contractor according to a number of parameters, and it is accepted that the payment will be divided into stages, according to The pace of progress. It is important to determine in an informed manner the milestones at which payment must be made, and the amount of payment at each point. This agreement is not a necessity but only a proposal. Some see it as an advantage and some see it as a risk. The advantage is that you can know in advance what the stages are and what the total costs are, so there is no room for surprises. The disadvantage is that contractors are interested in avoiding risk and therefore tend to raise prices in advance. Hence, it is always better to consult a professional.

Completion Certificate

A certificate is sure that the construction work has been completed and at the same time aligns it with the construction plan, work plans and the building permit. The certificate is important because it is required for connection to electricity, sewage, telephone and water. After the approval is granted, it is not possible to claim that there were deviations from the permit. What can be done to ensure that no work was carried out without a permit after a completion certificate has been received? The existing situation can be examined against the existing building permit.

Deed of Sale

A document that regulates the transfer of rights to land in a regulated and legal manner. The document is issued by the Land Registrar, and includes the personal details of both parties, a description of the land, the consideration, etc.

Real Estate Tax

Quite a few people who wish to invest in real estate find themselves faced with a large and tempting supply. So, how can we know which real estate investments warrant interest and lead to a handsome return? There are quite a few variables, but the Real Estate Tax is a significant element in this equation. A public open space is an open public space and refers to the development of public space such as: sidewalks, amusement parks, squares, parking lots, crossings, parks, etc.

Development fees

Development fees are a series of payments intended to cover a variety of costs, with the developer usually returning the cost towards receiving a building permit. Such as a paving levy, a channeling levy (for the preparation of canals), a sewage levy, a public open space levy and a water pipe levy.

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