HK – The Latest Thing in Real Estate

Subscribe for our newsletter

|
|

Huge Profit Potential: How Agricultural land in Samaria became the Latest Thing in Real Estate

Plans approval bureaucracy is minimal, prices are still rock bottom. Investors are currently discovering agricultural lands beyond Israel’s Green Line. Developers are expected to arrive in New York to meet with potential investors (details in the article).

שיתוף ב email
Email
שיתוף ב whatsapp
WhatsApp

As housing prices in the center of the country rise, attractive investment opportunities are dwindling. After all, many investors cannot provide equity of hundreds of thousands of ILS or are simply reluctant to do so – since the higher the initial investment, the lower the profit potential. However, it is worth checking out what is happening beyond the Green Line for those who don't give up and continue searching for investments with relatively low equity, without compromising on a high-profit potential.

For example, agricultural land in Judea and Samaria, in an area designated for future construction, is currently marketed for 44,000$ per 100 square meters of land. Land rezoning and plans approval processes are much faster beyond the Green Line so that within a few years, the value of these units is expected to jump to 150,000$ – almost four times profit on the investment.

Less bureaucracy, no betterment levy

The company marketing the land, and has been specializing in promoting projects beyond the Green Line for more than 30 years, explains that "Usually, to approve plans and rezone agricultural land, the plans have to go through a local committee and a district committee, a process that takes many years. But there is no district committee beyond the Green Line, so the process is shorter. Another advantage of the location is that there is no betterment levy for transactions beyond the Green Line. That means savings of 35% to 50% compared to similar transactions within the Green Line".

The company emphasizes that the land is under private Jewish ownership and is registered with the Land Registry. Moreover, it also accentuates that these are not lands owned by the state, but lands with orderly and accessible Land Registry listings, including blocks and plots, without a single lien. Finally, as stated, the area is intended for future construction.

Three Investment Tracks

According to the appraisal report under Standard 22, and based on similar cases, the rezoning of these lands is expected within about 4-5 years. Each unit of land will grant the investor rights to one housing unit in the building once the city building plan is approved. According to the Standard and similar transactions in the area, the price of an apartment is expected to be about ILS 1.5 million.

There are three profit tracks available to investors in these lands. First, investors who sell after receipt of a building permit are expected to receive about ILS 500,000, a profit of almost ILS 400,000. Second, investors will add building costs of approximately ILS 600,000 and receive a new, four-room apartment valued at ILS 1.5 million, after investing around ILS 750,000.

The third investment track is intended for those who purchase three or more land units and will be able to conduct a combination deal with the contractor who will be building on site. Those who wish to do so, will transfer ownership of some of the units to the contractor and offset construction costs.

A New Town will be Built Here

The company marketing the land says that "In recent years, construction in Judea and Samaria has gained widespread legitimacy, with ministers, Knesset members and mayors visiting the area and promising that a new town will be built on these lands.

There is a high degree of certainty that the construction plans here will come to fruition, so for an investment of only 44,000 $ there is insane profit potential; whether investors choose to sell the land immediately after it has been rezoned, leave it in their possession and get an apartment at a ridiculous price, or enter into a combination deal with the contractor".

Interested in hearing more details from the developers about purchasing land for investment in the Holy Land and meeting with them in New York? Leave your details:

Leave your details:

This is advertorial content. Click here for terms