Initial Purchase:
You begin by acquiring underutilized agricultural land at a fraction of the cost of residential property. In this case, the land requires a down payment of 1,200,000 NIS (approximately $325,000). Agricultural land is typically priced lower due to its limited immediate development potential, making it an attractive entry point for savvy investors.

Sale Approval Process:
Before the property can be rezoned, it must first go through a sale approval process. This phase involves navigating legal, regulatory, and bureaucratic channels, which can take several years. Once the sale is approved, the final 90% payment is due, which can be covered through the sale of part of the land.

Final Payment:
After receiving sale approval, the remaining 90% payment is due. To fund this in option 1, 45% of the land can be sold to investors. This allows you to secure ownership of the remaining 55% of the land with just the initial 10% down payment. This process provides the capital to cover the rest of the acquisition cost, while still allowing you to retain a significant stake in the land’s future development.

Rezoning Process:
Once the sale is approved, the property is submitted for rezoning from agricultural to residential use. This process may take additional time but is critical to unlocking the land’s full potential. With expected approval for 6-9 story buildings, the transformation from agricultural to residential land typically results in a dramatic increase in its value.

Development Potential:
After rezoning, the land is ready for development. The remaining 4.4 dunams of land are expected to allow for the construction of 52.8 apartments, each 120m² in size. This zoning increase opens up significant opportunities for residential development.

Developer Partnership:
Partnering with a developer allows you to sell the development rights of the property in exchange for 30% of the fully built and paid-up apartments. This partnership structure mitigates your upfront financial commitment while ensuring that your family will receive a portion of the newly built apartments upon completion. 

Return on Investment:
In this scenario, your family would receive 15.84 fully paid apartments, each valued at 3,000,000 NIS. The total value of your investment could rise to 47,520,000 NIS, resulting in a return of approximately 3960% on the initial 1,200,000 NIS investment.

• The Dramatic Value Increase:
  The dramatic appreciation in value when agricultural land is rezoned for residential use is the core driver behind this high return. Under utilized agricultural land is usually priced much lower than residential land. Once rezoning is granted and high-rise buildings are allowed, the land’s value increases exponentially, significantly boosting its potential for profitable development.
• Strategic Entry Point:
  By purchasing agricultural land at a low initial cost securing the deal with just 10% down, your family gains access to a strategic entry point into a high-value real estate opportunity. This option offers a much higher upside compared to traditional real estate investments, where properties are already zoned for residential use, thus limiting their growth potential.
• Developer Partnership:
  Partnering with developers reduces your financial exposure while still providing a substantial share of the final development. The sale to investors and subsequent developer partnership ensures that you don’t have to cover the full cost of the property and development upfront, while still maintaining ownership of a substantial portion of the property’s future value.