Buying an apartment in a building signed for urban renewal? What to check
The words "signed for pinui-binui" appear in many listings today. Behind them there may be a good opportunity, but also years of waiting. Here is what you need to understand.
What pinui-binui is
In a pinui-binui (evacuation and reconstruction) project, an old building is demolished and a new, larger building is built in its place. The existing residents usually receive a new apartment in the new building, often larger and with an elevator, parking and a safe room, and the developer profits from the additional apartments it sells.
Why it can be an opportunity
Buying an apartment in such a building really means buying two things: an apartment to live in or rent out today, and the right to a new apartment in the future. That is why such an apartment can hold growth potential that a similar apartment in a regular building does not.
But it takes time
From the residents' signatures to the keys to the new apartment there are usually several stages: planning, plan approval, building permit, evacuation, construction and return. The process can take many years, and some projects get stuck along the way. "Signed" is an important stage, but it is not the end of the story.
What to check before buying
Who the developer is and what experience it has. What stage the plan has reached at the local planning committee. How many residents have actually signed. What the agreement with the developer says about the new apartment, alternative housing during construction and guarantees. And who the lawyer representing the residents is.
The legal checks are done with a real estate lawyer. Ronit helps gather the information, ask the right questions and understand what stands behind the listing.
Considering an apartment in an urban renewal building?
Talk to Ronit before you decide. One conversation can save a lot of surprises.
Chat with Ronit on WhatsApp