We have received a number of requests from people making plans to move to Ashkelon and about buying or renting apartments. Good news/good news. The good news is that because Ashkelon grew very quickly, there are an abundance of units available. The other good news is that prices are a lot more reasonable than other large cities in the center.

Prices typically depend on a number of factors:

• Location, location, location – proximity to the sea, being located in Afridar or other in-demand neighborhoods, proximity to stores, schools, transportation.
• Sea view – two identical apartments in the same building, one with a sea view, one not, will go for different prices. Your dream apartment might have a sea view, but consider that it is only one of the factors, because as some residents have found, a sea view is only good until a large building is constructed blocking that view. But the proximity to the sea and amenities will not change.
• Size of the apartment – typically four-room apartments are anywhere from 95 to 125 square meters.
• Parking – is it registered on “Tabu”, is it covered or outside, how many spots do you get (one is typical).
• State of the apartment – has it been renovated recently?
• Elevator – does it have one or two elevators? If you are shomer shabbat, does it have a Shabbat elevator?
• Machsan – having a storage unit is great for all of that extra stuff that you don’t need all the time. How big is the machsan?
• Pipes – older Israeli apartments were built with metal pipes. In ISrael, the plumbing is almost always under the floor. When the metal pipes corrode, you will need to open up the floor and replace the metal pipes with plastic ones. Not cheap, very inconvenient and while it is going on, you feel like you are living in a sandbox (Israeli tile floors have a lot of sand underneath. Ask if the pipes were changed.
• Electrical – as power demands increased, the need for three-phase electrical increased. Check on the power situation.
• Air conditioning – today it is a must. Depending on where the apartment is located and the situation with the breeze flow in the apartment, you may get by with fans for all but the hottest days. In the winter, Ashkelon can be cold with a strong wind coming from sea, so heat is something to consider. It is not like Jerusalem’s winters.
• Water heater — most apartments are equipped with a solar water heater (dude shemesh) that has an electrical heater inside. On hot summer days the sun heats your water. On days without sun, you might need to turn on the dude. Ask when it was installed. Typically, they last about five to six years and then start having problems. Larger apartment building have a unit for the building and you usually don’t have to worry about it.

Buying an Apartment

Buying an apartment in Ashkelon, or any place in Israel, is a very different experience than in the States. There is no Multiple List Service that lists all properties for sale. Each agent or agency will have a list of apartments that they have for sale as well as units they know about. In Israel, the buyer and the seller each pay the agent that makes the “shidduch”. The fees range from 1% to 2% and agents will either include the 17% VAT or add it to the amount. Make sure you know what you are signing for, because once you have purchased that apartment, you owe the agent the commission. Commission is paid when the contract is signed.

Renting an Apartment in Ashkelon

Currently, Ashkelon has many apartments for rent. Israel lacks a stable supply of rental apartments and instead relies on individual owners who rent out their apartments. Leases are important and you should use the services of a lawyer. The standard fees for a rental commission to the real estate agent are one month rent. The same applies to the lawyer although if there are detailed negotiations the lawyer may charge more. Try and make sure that you have the right to rent for additional years if you choose. Rent usually does not include arnona (municipal taxes), utilities and vaad bayit.

Who else has a Key to Your Home?

Whether you bought a brand new apartment, a previously owned unit or are renting, someone else may have a key. The last thing you need is to come home and find that someone has entered your home while you were gone. Most apartments in Ashkelon have a pladelet, with bars that extend from within the door in three or four directions. If the door is working OK, all you need to do is to arrange to have the cylinder replaced. It can usually be done in less than 60 minutes and the cost depends on the quality of cylinder that you choose. Break-ins are common in Israel, so go with a decent brand and a locksmith that you trust. Contact the popular Doctor-Lock.com for reasonably priced and top quality work. Doctor-Lock is based in Ashkelon and offers a fast and honest service. Doctor-Lock is available for emergency work 24/6. Phone 058-453-5593 and get that cylinder changed right away!

Tricks of the Trade

If an agent leads you to an apartment and you end up purchasing the unit you must pay a commission fee. There is a form that is filled in and signed for each unit that is shown listing the unit and the percentage of commission you are agreeing to pay. To avoid people finding out where an apartment is located and avoiding the commission, agents often advertise that the apartment is “in a good area” or ‘on a good street”. If it is a large street with lots of apartments the agent may advertise the name of the street or sometimes they choose a nearby street.

Since there is no listing service, agents know that clients will go from agent to agent to find the unit that they want. Some agents will claim listings by showing apartments that they do have listed but are known through local newspapers. They figure that rather have you walk away and lose one half of the commission they would like to make what they can, and show you a listing for which they only receive commission from you, the buyer. This gets a bit bizarre when agents show you a unit that is advertised in the newspaper and collect commission on the sale. This same unit would be free of commission if the buyer found the apartment on their own by reading the same newspaper the agent is reading. If you do a little of the legwork you can save thousands of shekels in a purchase.

Negotiations are not the same as they are in North America. An offer to purchase is not always a formal procedure, accompanied by a check to the buyer. It is often done on the phone or in a very informal way followed by a temporary agreement. Do not sign a temporary agreement! Besides the purchase price and closing date a list is normally drawn up of what the sale includes in terms of appliances, air conditioners and wall units. You might be surprised at what is taken from an apartment before it is handed over to buyers. Sometimes sellers remove things like air conditions, aron kirs (clothes closets) lightbulbs, toilet paper dispensers…make sure you know what you are buying.

Keep in mind that many Israelis do not buy an apartment until they sell their own apartment. This creates situations of long closing dates, sometimes as long as a year away from when the deal is made. Your lawyer will help you negotiate the terms, because during this waiting period, you will need to be making payments on the apartment. At the final closing you will make a final payment, typically about ten percent. Until you close on the apartment, you have invested in a property and need to insure it.

What are the “Extras”?

So, you found the home of your dreams and now you are ready to make your purchase. If you are taking out a mortgage you will need to brace yourself. Getting a mortgage in Israel is a long, stressful ordeal that requires patience and a good sense of humor.

Real estate agent

This standard fee is usually quoted at 2% plus VAT, but in Ashkelon, as in many cities, the price is negotiable.  Expect to pay anywhere from 1% – 2% either including VAT or in addition. You need to discuss the amount and sign a commitment to pay the agent even before you see the apartment. Since listing are often non-exclusive, it is possible for an agent to show you a listing that he found in a publication, just like you could have found. Once you sign that commitment, you are on the hook for the commission even though you could have bought the unit without a commission. Do your homework and stick with an honest agent that you have received references for. Contact us and tell us what you are looking for and we would be happy to recommend agents with a good reputation. You can also check out the real estate agents in the Ashkelon Business Directory real estate agents page.

When you start your apartment search, also search for a lawyer. You might need immediate support and by having a lawyer lined up that you can have legal questions answered when you need them. Talk to friends who may have personal recommendations. The Ashkelon Business Directory has lists of lawyers that speak English.

Inspection

Some buyers choose to hire an engineer to inspect the apartment. Fees vary depending on which services are needed. One company offers over 20 different services including radon checking and a neighborhood check. If your Hebrew is not up to speed, make sure the engineer gives you a report in English and does not charge extra for the English report. Engineer inspections are usually around $600.00. Most people do not have an inspection done, but your lawyer or bank may ask for a Shamai to inspect the unit. The shamai might verify the size and identify things like areas that were enclosed illegally. This fee is about 2,000 to 3,000 NIS and is a very worthwhile investment.

Taxes and Fees

Taxes change from time to time so check with your lawyer for the exact amount. As in any purchase you will pay the seller any prepaid amounts. Arnona (municipal taxes) are paid to the city and Olim chadashim get a discount for the first year on the amount of taxes they pay on the 1st 100 square meters. Vaad Bayit is the monthly maintenance fees that each owner pays to the building and that covers electricity for the hallways, cleaning, gardening etc. There is no concept of a large reserve fund that North American condo owners pay into through their maintenance fees so if there are any unexpected expenditures each unit owner has to pay for them, unless the building has been building a buffer. You can contact the Vaad Bayit to find out if there are any expected renovations (reconditioning of the elevator, plumbing or electrical etc.) and what the condition of the building’s finances.

If you are bringing money from abroad, work out the logistics in advance, so you will not miss payment dates and have time to convert currency. Israeli banks are very careful about money laundering laws, so be prepared to give a copy of the contract to your bank and alert them about the transaction.

How to Find a Home

Besides using real estate agents there are a number of other ways of finding a home in Ashkelon. There are a number of online resources that contain listings of apartments and villas for sale and rent. 

What is the Size of the Apartment?

Apartments are usually listed according to city and number of rooms in the apartment. A FOUR room apartment is a THREE bedroom unit. The normal way of counting rooms is the number of bedrooms plus one for the living room and kitchen. Apartments are measured in square meters and because of the system might be one figure on the Tabu and another on the Arnona document. The Arnona document is almost always higher than the Tabu figure. The city takes the municipal taxes (Arnona), based on the higher figure. So quite often apartments are advertised using the larger number found on the Arnona bill. 

Confusing? Wait! The size of the apartment can also include your parking space, Machsan (storage locker), mirpeset and even a share of common space, such as the stairwell. 

Mortgages – How to Save Some Money

One of the worst parts of buying a home in Israel is dealing with the banks to get a mortgage. Navigating the system can be difficult if you do not know the ins and the outs. Now there are mortgage advisors who guide you through the system. They typically take a fee which is usually made up by a lower mortgage rate.  Check around and talk with your lawyer.