Dira be-anaha is a program of the Israeli Ministry of Construction that allows certain groups of people to buy housing on preferential terms.
Dira be-anaha is the general name for preferential programs for buying real estate in Israel. It includes the Mehir le mishtaken and Mehir matara programs. It is worth noting that the Mehir le mishtaken program has already closed, but now it is still possible to purchase the remainder of unsold apartments under the program. The Mehir matar program is virtually the same as Mehir le mishtaken. Now more than 90% of the housing lottery draws are done specifically under the Mehir Matara program.
What does the Dir be-anah program provide?
Under the Dira be-anaha program, you can buy property at a 20% discount. However, the amount of the rebate shall not exceed NIS 300,000. It may not seem like a very large sum, given the high prices of real estate in Israel, but there is one nuance.
The value of the apartments in this program is based on a property valuation report dated December 2020. As you can imagine, the cost of housing in Israel has gone up a lot since then. Nationally, real estate price growth averages 8-9% per year. Thus, by participating in the Dira be-anah program, you can buy a home at an initially low price and receive an additional discount of up to 20% (but not more than 300 thousand shekels).
Another advantage of the Dir be-anah program is that you will not need to have 25-30% of your own initial capital to buy an apartment, but only 10%. However, there are limitations here as well. This option applies only if the value of the apartment does not exceed NIS 1500000.
Who is eligible to participate in the Dir be-anah program?
The following groups of Israeli citizens are eligible to participate in the Dira Be’anah program:
- married couples
- singles over 35
- a parent with a child under 21 years of age
They are eligible for the drawing if the following conditions are met:
- Have not owned a dwelling or part of a dwelling in the last 10 years
- are not entitled to an apartment in a building under construction
- do not own a plot of land or part thereof
- three times did not give up a win in the Dir be-anah program
In addition, persons with disabilities and victims of war are eligible to participate and benefit.
How do you get a reduced price?
The state allocates land to a developer for the construction of a residential building at a discounted rate. For this, the developer undertakes to provide 60% of the apartments in the new house at a discount. These apartments will be sold to the participants of the housing program. The remaining 40% of the apartments will be sold by the developer on the open market at the normal price.
How do I participate in the program?
In order to participate in the program, a “Zakaut”, a certificate of eligibility, must be obtained to prove a person’s eligibility for the program. The cost of obtaining this certificate is 240 shekels. You can get it from one of the 3 registration companies:
- Alonim
- Milgam
- Amidar
The certificate can be issued online, or at a branch of the company. The certificate is valid for 4 years. Each year it can be renewed on the Ministry of Construction’s website.
When your order is received, the Ministry of Construction website allows you to select the cities that are appropriate for you from those in the drawing. In different cities the cost per square meter differs, and you will be able to choose an object that suits your budget.
When you receive a message that you have won the drawing, you are assigned a sequential number. This is your number in line to choose an apartment. The lower the number, the earlier you get to the viewing, and the more choice of apartments you will have.
It takes 40 minutes to view and choose an apartment. If you have decided on an apartment, you leave a deposit of 2000 shekels, and within two days you must sign a sales contract with the developer.
There may be a situation that after winning the drawing, you are not satisfied with the remaining available apartments. Small apartments sell out fastest, while buyers for expensive properties with a large area are much harder to find.
If you don’t find a suitable apartment, you can give up your winnings and continue to participate in the lottery. You can refuse to buy an apartment under the Dira be-anah program no more than 3 times. After that, you will cease participation in the drawings.
How long is the wait for apartments?
On average, the waiting period from winning the lottery to the developer delivering the house is 2-3 years. However, it should be noted that sometimes there are delays in construction, and the house is delivered only after 4-5 years.
Any questions?
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