Israeli Developer Offers 0% Down Payment for Apartments
Israeli developer Aviv Melisron is offering apartments with a 0% down payment by utilizing buyers' existing properties for financing. The company will cover interim costs until occupancy, with buyers settling the loan later through property sales or equity. This initiative aims to overcome financial barriers in a slowing real estate market, which has seen prices rise 7.7% this year.
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- Aviv Melisron offers apartments with a 0% down payment, using buyers' existing properties for financing.
- The company will cover financing costs and interest until the property is occupied.
- This initiative targets buyers lacking liquid capital, including first-time homebuyers and investors.
- The Israeli real estate market has seen a 7.7% price increase this year.
- Developer incentives have become more prevalent since the recent war began.
The Israeli real estate market, experiencing a slowdown due to high interest rates and exacerbated by the recent war, has seen developers introduce new incentives. Aviv Melisron, a real estate company, has launched a program allowing apartment buyers to purchase properties with zero personal capital upfront. This initiative aims to circumvent the standard requirement of a 20% down payment, which has been a significant hurdle for many prospective buyers, particularly young couples.
The company's model involves leveraging an existing property owned by the buyer to secure the necessary financing. This approach is also suitable for real estate investors whose capital is already tied up in other properties. For first-time homebuyers with limited savings, the program even allows for the use of a close relative's property to assist with financing.
Aviv Melisron will cover financing costs and interest payments until the property is occupied. Upon completion of this period, buyers can finalize the loan by selling their existing property or using other equity. The company is marketing this new model across its residential projects in various locations, including Givatayim, Tel Aviv (including Ramat Aviv), Ramat Gan, Netanya, and Herzliya.
Tzachi Didi, CEO of Aviv Melisron, stated that the creative financing solution is designed to enable all buyers to acquire new apartments, even without liquid capital, thereby improving their living standards. The real estate market has seen prices increase by 7.7% this year despite the slowdown, with developer incentives becoming more common since the war began.