Land appraisal is currently required for every transaction connected with land or real estate. The need for appraisal derives from the character of the real estate market, since no property is the same as any other. Therefore, every real estate transaction, sale or purchase or lien for the purpose of any betterment or change whatsoever, requires an appraisal, to be performed by a qualified land appraiser, in accordance with the rules and criteria required for each appraisal.
Alpha Beta provides appraisal services in various fields - commercial, private and institutional, and it is part of the envelope of services provided by the best professionals in the field.
As part of our rich experience in the real estate field, we prepare a "Zero Report", which is the most important document for real estate entrepreneurs in Israel, and it is drawn up and prepared by the best professionals and land appraisers at Alpha Beta.
The "Zero Report" reflects the economic feasibility of every real estate project, and purchasers who are interested and want to obtain bank financing are required to present such a report so as to know what profit can be expected from the project.
The "Zero Report" is also designated for real estate entrepreneurs, who are required to present it to the bank or financing entity. It is drawn up and prepared by a qualified land appraiser, and reflects the extent of the project's economic feasibility.
Every bank in Israel relies on the "Zero Report" in order to give financing approval and, in practice - approval to begin actual execution of the project.
This supervision is intended to update the bank or the financing entity, in accordance with the "Zero Report", as well as to follow-up on the project's marketing progress and reports on the project's expenses and income and to ensure correct management and to prevent budget deviations.
Alpha Beta specializes, inter alia, in correct preparation and construction of budgets for real estate projects, with financial management for real estate projects being one of the most important and even critical components in the management and success of the project.
Incorrect budget structure, or incorrect or unprofessional budget management, could lead to the project's failure and even to the company's economic collapse!
Therefore, one of our services is financial management for real estate projects. To simplify - it is in fact construction of a budget based on the existing budget, cash flows and future revenues. All this is intended, first and foremost, to safeguard for our clients the budget for each project, alongside supervision and close monitoring.
Part of our services is monitoring and full proficiency regarding investment encouragement laws in general, and especially regarding real estate investment. For that reason, we maintain an open line of communication with our clients vis-a-vis the government authorities, among them - the Taxes Authority, the Housing Ministry, and other government entities, so as to provide our clients with reliable and correct information in real time.
Upon improving land or real estate property, various levies and taxes apply under the law, the lion's share of these being Betterment Levy and Land Appreciation.
Alpha Beta examines and inspects all calculations, and the rate of Betterment Levies and Land Appreciation Taxes which clients are required to pay by the local and regional planning and construction committees, with the aim of arriving at the correct and precise calculation in order to reduce the rate of the client's expenses, under the planning and construction laws and the various taxation laws.
Alpha Beta's experts engage in adapting and improving real estate according to market needs and to profits and benefits. Among other things, we engage in adapting land and/or buildings for the purpose of saturated construction, and long term rental apartments.
The benefits may include:
Income tax benefits on a new long-term rental building, under Section 53 C of the Investments Encouragement Law.
20% annual depreciation (regular depreciation rate on buildings is 4% p.a.).
Reduced income tax at the rate of 11% (normal corporate tax is 23%).
Income tax at rates between 10%-18% for foreign investment corporations.
Exemption from VAT on new long-term rental building, under Section 31 of the VAT Law.
Exemption from VAT on sale of apartments under Section 31 (1)(a) of the VAT Law, to the extent the sold part has been rented for at least five years.
Deduction of tax on outlays regarding land and construction expenses; this right is granted only if the outlays are expected to create transactions on which VAT will be paid.
In addition to all of the above, there are further conditions for receipt of tax benefits, which are not stipulated in the Investments Encouragement Law, but in a special procedure published by the Investments Authority.
