They had married half a year earlier and had pooled the money they received as gifts and what each of them had saved into one savings fund, which was their security for buying a home.
They entered the “Price per Resident” housing lottery (Mechir Lemishtaken, an Israeli government program for discounted apartments) and did not win... Then a friend of hers told them about an attractive investment abroad that could double their money within 5 years and along the way give them an annual return of 12%.
After several meetings with the young couple, the company sold them an apartment in a new building in a major European city.
The apartment was intended for short-term rental through a local management company and everything looked promising... until guests began leaving the apartment every weekend and rating it low, which led to zero bookings.
The young couple, who did not understand why there were complaints online, turned to the management company and discovered that the good friend who sold them the property had “forgotten” to tell them that right next to the building is one of the most renowned dance clubs in Europe.
They sat in my office and the wife told of the sales conference, the meetings in the Tel Aviv tower, the confidence they projected, the experience and knowledge they displayed. They were excited about the apartment, the city, and above all about the ability to buy a property in their own name with the little they had managed to save so far. The updates they received on construction progress, and the excitement as the date for receiving the key approached. Slowly her face fell as she went on with the story, and on the verge of tears she told how, a few weeks after receiving the apartment, they had to cope with devastating reviews from guests on social media, until in the end they stopped renting the apartment on weekends.
Her husband added that they had to refund money to guests and had reached negative cash flow.
Toward the end of the meeting he said in a burst of honesty: my biggest mistake was that I didn't travel to see the place before we signed.
What do you check before you buy a property/apartment abroad?
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית