Did you think that the cost of living is only related to the government, contractors or the market situation? • Mistake • Yair Levy, an expert in business real estate, on the main culprit in our problem • Chapter 01
Real estate. We all want it, some of us have already given it up in advance due to the sharp price increases, but what is certain – many of us do not understand enough in this intriguing world, which is a shame. Meet Yair Levy, an expert in business real estate for almost four decades, who decided to reveal all the truth about the world of real estate in the new podcast ‘The Capitalist’, including what they don’t really tell you.
< p style="direction: rtl;">The first chapter, Levy devoted to the wonderful puzzle that is buying property, in a world with dozens of parties with conflicting interests, and especially confusing ones. “If I look at my parents or grandparents or Yours truly, we know that living in their time was never such a big problem. When the country was young, there were few people and of course large areas, but as the country progressed, matured and became successful, there is a certain price for success and unfortunately we are paying the price today in the field of living,” he claimed. /p>
“In the State of Israel, the regulator is the combinator,” claimed Levy, “Everywhere in the world there is a regulation established by the government and the citizen sometimes tries to manipulate it and the laws established. But in the state, the regulator He is the one who actually makes the combine. He comes and says, ‘I don’t owe my citizen housing. I see housing as something that is something else that I may have to give him.’ Regulation, in my opinion, today is the touchstone and whether you have sinned on the issue of housing. I really relate to the desire of every couple to put their hands down and buy an apartment. Housing is a very fundamental part. In my opinion, if it was within the reasonable and normal values that every young couple could meet, in my opinion the divorce rate would also decrease.” style=”direction: rtl;”>”The state is fighting us, it thinks that by establishing regulation and rules, it will help us, but in fact it is doing the opposite,” emphasized Yair Levy, an expert in commercial real estate who has already seen quite a few recurring trends In the world of Israeli real estate. “In the processes and laws it creates, it is only fighting its own citizens. If once, less than 20 years ago, it was possible to issue a building permit, which is an important procedure in the process of building an apartment, in six months, today such processes in the authorities take a year and two years, and in Tel Aviv even three years.”
“If an entrepreneur purchased land for 20 million NIS intended for the construction of 50 housing units, the value of the land per unit is approximately 400 thousand NIS. If he took a loan from the bank, on which he pays only 6 percent interest, if he takes He has 3 years to issue a building permit because of the regulation of the state and local authorities, he pays interest of 1.2 million per year, and in three years it is 3.6 million. If you want green construction, it adds another 4 million shekels. Now I want to start building, I hire a contractor and need Pay him between 800 thousand and a million per housing unit. Why is it so expensive to build an apartment? Because apart from all the elements of the construction, you also have to pay VAT and taxes and there is the issue of the workers, most of them foreign workers. We take people who in the country of origin earn 500 dollars, and the employer’s cost is about NIS 20 thousand. We are merciful, merciful children. This will probably upset you all, but if it’s at the level of a certain petty corruption, sometimes it drives the economy and fights the cost of living.”
Thought you understood everything? Think again. “Come on I will explain to you why corruption can actually help you a little,” he managed to surprise without a doubt. “If the three years of interest cost that contractor the 3.6 million shekels that you pay in the price of the apartment, and let’s assume that he would find some ‘lobbyist’ and he would say to him, ‘Instead That the building permit will take you three years, I know how to get it to you in a year, but it will cost you NIS 300,000, so he would save two years of interest, he would put his 15 percent contractual profit on a lower cost price, and you You would buy the land at a lower price,” Levy clarified. So the next time you try to become a homeowner, pay attention to which pitfalls to avoid on the way to the desired destination. The keys are in the door.
