We realize that purchasing property is just the beginning of the journey, and everything that comes afterwards can be a little overwhelming, we will “hold” your hand through-out the process.
We focus on new and pre-owned residential sales to investors abroad.
We ensure the projects and properties that we represent are built by and inspected by vetted contractors, ensuring the highest level of construction and inspection before they are brought to our table. This is another way we ensure that what you invest in today has been, and will continue to be in good hands.
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The answer is YES! A foreign investor can take out a mortgage of up to 50% of the purchase price, once 50% of the purchase price has been paid by the investor. It’s possible to get a mortgage in the currency of your choice (Shekels, Dollars, Euro, and Pound) for a period of up to 30 years or until the age of 80.
The down-payment required by a foreigner purchasing property in Israel is 50% of the purchase price, which applies to existing properties. If, however, you latch on to the unstoppable growth in the Israeli property scene and look to buy a property that is part of a new development or a pre-construction project, between 15 – 20% will secure the deal, 35% -30% is then payable during the development cycle, and the balance of 50% is due on completion. This portion can then be financed from a mortgage.
Yes absolutely! A foreign citizen can open an account in any Israeli bank, and subject to the specific procedure, there are no substantial restrictions on opening such accounts.
When transferring funds the account holder will have to explain their relation to the account abroad from which the transfer is made. Guidance in this area will be key to making the process as smooth as possible.
- Promotor / Realty fees 2%-5% plus VAT (17%)
- Lawyer fees 1.5% plus VAT
- Mortgage fees 1% – 1.5% plus VAT of the Mortgage amount
- Independent engineer report if required NIS 2500 ( if required)
- The purchase tax 5% of the property- this scales up based on the purchase price
(Note – this is discounted for new immigrants buying a first home)
- Building tax – this applies to buying a property that is still in the construction phase and it is effectively interest that the government allows developers to charge on any outstanding funds while the property is being built.
This applies to buying a property that is still in development phase.
The building index is a government published building tax, it is effectively interest that the government allows developers to charge on any outstanding funds.
If depends on the individual circumstance but if you are looking to invest in a property and there is no urgency to move in immediately, purchasing in a new development allows the flexibility of more time to come up with the 50% need to purchase the apartment. A qualified mortagge broker would need to be consulted on the best options for your circumstances.
You can a choose a fixed or variable mortgage option, and there are ways to tailor your mortgage terms to suit your future financial plans. This gives you the flexibility to choose the type of mortgage structure that suits you. But, like with all things, careful consideration should be put into the term of repayment, as there can be pre-payment penalties if it isn’t adhered to. You are also able to link your mortgage to a currency, which eliminates an element of risk.
For those who are thinking of making Aliyah, it is helpful to know that the mashkanta for Israeli citizens is different, and is determined according to age, marital status, and the amount of years you have lived in Israel. But generally, Israeli citizens are eligible to borrow up to 75% of the purchase price on your mortgage (depending on certain conditions, of course), and if you are in the process of making Aliyah, you will be eligible to apply for 75% mortgage and receive the money before you even land.
As far as purchasing a property and applying for your mortgage, the entire process can be done remotely. This is done through lawyers and representative power of attorney to sign on your behalf, and this will also help you to open an Israeli bank account. You will need to provide qualifying tax returns from your originating country, a credit history report, as well as your passport and identification documents.