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You’ve heard the term "Only In Israel," affectionately called OII for short, applied to that particular brand of Israeli-ness that is unique to this beautiful country. It doesn’t only apply to the character of the people and the place, but arguably to every element of living and doing business here too. And investing in property in Israel is certainly no different. Overseas investors would do well to get their heads around at least the most basic of the must-knows and property jargon before signing on the dotted line.
Ready to invest: Israel, understand the terminology!
You’ve heard the term “Only In Israel,” affectionately called “OII” for short, applied to that particular brand of Israeli-ness that is unique to this beautiful country. It doesn’t only apply to the character of the people and the place, but arguably to every element of living and doing business here too. And investing in property in Israel is certainly no different. Overseas investors would do well to get their heads around at least the most basic of the must-knows and property jargon before signing on the dotted line.
Like any investment, buying a property in Israel is no different. One thing is sure; the Israeli economy stands out as one of the few that has remained stable even during the rollercoaster ride of the last few years. And Hold has been there for the ride, assisting many investors abroad to find attractive investment opportunities and with a wealth of experience to draw from when helping you establish the key issues you need to address before investing. You know what they say about property and location. Finding the perfect spot that meets your needs and investment goals is the best starting point. There are many suitable options out there, which, with the right advice, can be tailored to suit your every need.
First, narrow down the broader issues: What is your investment goal? What is your appetite for risk? Are you flying solo or as part of a group of investors? Using this as your starting point will help you determine what areas and property types you should look at. A central location with a budding rental market if you prefer to play it safe or new areas of development. The perfect spot is about location, yes, but making it yours is all about the bottom line.
The numero uno when it comes to investing in Israeli Real Estate is knowing your budget, what the extraneous costs involved are, and whether you will need a mortgage—the notorious mashkanta. Thankfully, as a foreigner, you’re eligible for a mortgage of up to 50% of the purchase price. But there are numerous other costs involved, and since much of the process takes place in Hebrew, it is crucial that you, as the investor, are empowered to understand the contracts and know exactly what you are in for so you can budget accordingly.
This might require a quick lesson in the basics. For example, mas rechisha (Purchase tax) is the acquisitions tax based on the property price at the time of the purchase and applied differently according to citizenship and/or residency status. Payable within 60 days of signing a contract.
Madad, the inflation rate or CPI (consumer price index); or arnona, the municipal tax rate of the chosen area. Whether you understand Hebrew or not, someone has got to be there with you, on the ground, someone who has got your back, while you discover your sweet spot.
With you in mind, Hold Real Estate’s expertise covers it all, giving you a safe pair of hands on the ground that will guide you through the process so nothing with be lost in translation. And with over 170 properties under our management, you won’t even have to worry about the post-sale tasks of finding tenants, collecting the rent, dealing with the Av Bayit (the superintendent and go-between), or the knock on your door of the Vaad Bayit (the building committee that collects and directs maintenance fees), whatever the time of day.
Empower yourself not to get lost in translation – download our “Pocketbook Translator BELOW -an easy guide to learning property language in Israel” to familiarize yourself with the basic jargon and get a Hold of this exciting new journey that you can find Only In Israel.
**The contents of this article are designed to provide the reader with general information and not to serve as legal or professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals before entering into any transaction.
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Learn the basics about real estate investment in Israel. What your options are, what to be careful of, and what never to do!