In most parts of the world, the real estate market is booming and Israel is not left out. In recent years, Israeli real estate for sale has attracted both local and foreign investors. Especially noteworthy is the growing interest of foreigners in Israel’s property market. Thanks to these investors, the country has steadily recorded an increase in real estate prices.
There are several reasons why foreigners want to buy properties in Israel but the most common include-
While some foreigners frequently visit Israel for business purposes others do so for leisure. Over time they may decide to buy Israeli real estate for sale. This way, they do not need to go through the hassle of booking a comfortable hotel or renting an apartment when they come into the country.
Some foreigners want to own property outside their home country for security reasons. The idea is to own a property in a safe country where they can relocate to when the need arises.
This is the most common reason why foreigners buy Israeli real estate for sale. Many of them are interested in property markets that offer income and appreciation. The Israeli property market offers excellent rental income and the value of most properties appreciates over time. This makes it a lucrative investment for foreigners.
The process of buying a property in Israel is not so different from what is obtainable in most advanced countries. However, you need a guide if you are a foreigner investing for the first time in the Israeli Real Estate Market. Here are some important tips to note.
You must not settle for the asking price of the property you want to buy. In fact, you shouldn’t settle for it. You have a right to negotiate the price and the payment conditions. It is only on rare occasions that properties have a fixed price and buyers cannot negotiate. One thing you should know is that most locals assume that foreigners who want to buy a house in Israel are wealthy and probably have so much to throw around. Before you buy an Israeli real estate for sale, find out how much that kind of property goes for around that area. That way, you will settle for a fair price.
In Israel, buying a property comes with signing and handing over a lot of documents. If you are not fluent in Hebrew, you may get stuck. The thing is, all property documents are written in Hebrew. The challenge will be to read the documents you will need to sign. One way to overcome the language barrier is to employ the services of a translator who is fluent in Hebrew as well as the language you understand. Fortunately, we provide translation services. Our trustworthy and reliable translators are fluent in Hebrew, English, and Hindi.
Found an Israeli real estate for sale that you like and want to buy? Don’t fret if you cannot come to Israel yourself to close the deal. You can complete the entire process remotely. All you have to do is sign a power of attorney authorizing an individual you can trust in Israel to represent you. This person can be a friend, a relative, a legal practitioner, or a reputable facilitator that resides in Israel. For the Power of Attorney that you sign to be valid, however, it must be notarized at an Israeli embassy or consulate in your country of residence and then sent to Israel. With this, your representative in Israel can sign all relevant documents on your behalf. If there’s a need for you to sign in person, you can receive and sign the documents at the Israeli Consulate.
Foreigners who want to buy a property in Israel with ease need to have an account with an Israeli bank. This is even more important when a foreign resident plans to take out a mortgage. The documents required to open a bank account in Israel include a valid passport and a photo ID. You will be required to fill out some forms too. If you are a U.S. citizen, you will be given a W-9 in addition to the other forms.
If you, however, do not want to open a local Israeli account, you can decide to transfer the funds for the purchase of the property. You can send it directly to the account of the seller. The seller will only need to present a contract of purchase/sale to the bank to justify the transfer of funds from a foreign account. If you choose to go with this payment option, ensure that you consult a reputable real estate lawyer in Israel before any transaction takes place.
Don’t underestimate the usefulness of legal consultation when you are buying Israeli Real Estate for sale. You may not be conversant with the bureaucracy in Israel as a foreigner. Your lawyer knows all these. The lawyer will draw up a contract that will work in your favor. Everything about the purchase of the property will be properly documented and preserved for future reference. With a professional real estate lawyer by your side, the negotiations, payment, signing of documents, and transfer of ownership will be done correctly, preventing unforeseen problems.
You are not just buying a property because you want to become a property owner abroad, buy a property that has the potential to increase in value. Apart from the type of property, the place where the property is located often tells you if it will appreciate soon.
If the property is your residence, is it close to places that you need to go to on a regular basis?
The property is for rental purposes: is it located in an area where there is a demand for rentals? If the Israeli real estate for sale is in an undeveloped area, does the place have the potential for development and expansion in the future?
If you are unsure of those things to look out for in a property that has been put up for sale, hire a professional to do it for you. The person you hire can be an engineer, or a professional real estate agent with experience. They will carry out a thorough inspection of the place, checking for building irregularities, the condition of the property, and the specification of the house among others. Someone needs to check and ensure that the property is worth the price before you make payment.
Please, Don’t be surprised when you are slammed with a purchase tax of 5% and above. The purchase tax for foreigners depends on the price of the property they buy. The higher the price of the property, the higher the tax you pay. However, there are occasions when you may pay less than 5% for Israel real estate for sale. One of them is if the property is the only real estate you own and the price is not more than NIS 1.74 million. You will be given a purchase tax exemption. And even when the cost of the property is above NIS 1.74 million, the purchase tax percentage will also be low. Other occasions where you can get low purchase tax include when your ‘Center of Life’ is in Israel and when you are a new immigrant using the property as your principal residence.
Once you are ready to buy a property in Israel, don’t take any information for granted. Pay attention to even the tiniest detail. It could save you from exploitation and wasteful investment.
Here’s some good news. With a professional real estate agent, you don’t have to do much. The agent has a thorough knowledge of the Israeli real estate market and can help you find the desired property in a short time. Looking for a reliable real estate agent and facilitator? Look no more. We are here to help you seal the deal on that Israeli real estate for sale that suits your requirements. Contact us today and we will get to work.