What is TAMA 38?

What is TAMA 38 ?

A unique construction program in Israel to rebuild old apartment buildings.
Invest in a TAMA project and earn exceptional returns in a short timeframe.

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  • Israel is subject to earthquakes that could create devastating damage
  • There are over 300,000 older apartment buildings in Israel that could be severely damaged or destroyed in an earthquake or missile attack. These buildings were built with old building standards; pre1980.
  • The government gives incentives to builders and apartment owners to renovate their buildings to the new TAMA 38 standards to protect against earthquakes.
  • Incentives entice builders to re-enforce the structure of a building, add a safe room (mamad), elevator, re-face the building and other renovations that substantially increase the value of the building and the existing apartments.
  • As compensation for their reinforcement work the developers are given rights to build additional apartments on top of the buildings. The sales of these new apartments produces substantial profits.

Everyone WINS

  • A) Tenants get a safer and nicer building, more living space and their property value increases.
  • B) Developers earn profits on sales of new apartments.
  • C) Government gets buildings up to TAMA 38 safety standardsm and increased tax revenue.
  • There is a shortage of apartment units in the cities where TAMA 38 building projects are being developed (primarily Tel Aviv & Jerusalem)
  • These are very high demand markets with extremely limited land for new developments – so the solution is to build UP
  • TAMA buildings are usually located in the highest demand neighborhoods. They were the earliest buildings in these neighborhoods – so they have excellent location, but they were built small. (the standard design for an apartment building in Israel in 1950 was 3 or 4 stories. Now that population has more than quadrupled, these buildings need to become 5 or 6 stories)
  • Incentives entice builders to re-enforce the structure of a building, add a safe room (mamad), elevator, re-face the building and other renovations that substantially increase the value of the building and the existing apartments.
  • As compensation for their reinforcement work the developers are given rights to build additional apartments on top of the buildings. The sales of these new apartments produces substantial profits.

The Developer gets to own and sell

  • a) the best apartments (brand new, American style, top floors with the best views and largest balconies),
  • b) in the best locations (high demand neighborhoods),
  • c) in newly renovated buildings that are the nicest looking and buildings on the street (now with elevators) and are the safest buildings on the street
  • d) with relatively inexpensive building costs (no cost of land)

The incentives offered to homeowners through Tama 38 can potentially raise their property value by approximately 30%. These incentives are provided completely free of charge and include:

  • a) Expansion (additional rooms) of existing apartment units by up to 25 sq. meters per home
  • b) Addition of secure rooms (each apartment gets a mamad that can be used as a bedroom or den, etc
  • c) Exterior and interior building design and renovation (new facing on building)
  • d) New elevator
  • e) New lobby
  • f) Refurbished gardens or parking
  • g) Sun patios or porches
  • h) Moreover, Tama 38 contains a full exemption from various tax requirements; namely, capital gains tax, amelioration tax, sales tax, and value added tax.

Who wouldn’t want these FREE upgrades to their apartment?

Tenants (owners) live in a nicer, safer building that is worth 30% more - with no cost to them

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