No matter where in the world any American citizen lives, Uncle Sam wants a piece of his or her action. Even an Israeli resident is accountable to the US of A.
Who is Included?
- US expatriates, living anywhere in the world.
- Residents of Israel who are US citizens
- Israelis with US, i.e. dual citizenship
- any US citizen who does not live in Israel but has family here, namely, future heirs.
The above can amount to millions of people. This can also affect any real estate in Israel one owns.
Tama 38
In recent years, public renovations and other projects have come to the forefront with zoning permits under Tama 38. TAMA 38 is a uniquely Israeli construction initiative program with fortifying older buildings in mind. Good neighborhoods fill up quickly and residents do not want to leave. This causes a housing shortage, with less apartments for sale or rent available.
Why would I want this?
- Strengthen the utdated, rickety foundations on old buildings that are no longer up to code
- Protect the buildings and their inhabitants from earthquakes
- Increase urban housing in congested neighborhoods, where vacancies are in short supply
- Added features
- elevators
- terraces
- fortified shelter room
- parking
- Increased living space (enlarged apartments)
- Real estate value will appreciate significantly
Benefit to the Contractor
- Permission to build new floors on top of existing apartment buildings
- The barter for the improvements listed above is a win-win and developers don’t have to purchase an entire property
- All permits already exist and any filing necessary is greatly simplified
- Most tenants and homeowners readily comply for the benefits listed above
- Tidy profit on selling the new apartments they add to the existing buildings
- Excellent returns with relatively low risk
Why Invest in TAMA?
Investment in a TAMA project can yield you a significantly higher interest rate than purchasing an investment property. After all taxes, maintenance fees, finance costs, etc. are paid, you will end up with far less. The difference can be over 10% in your pocket.
You will need an experienced law firm that you can trust implicitly to field the hurdles and cut the red tape. The Israeli real estate law firm of David Page can be your oasis in negotiating and closing any deals in this desert country.
