Investing in residential real estate in Israel
We hear about many people from the United States and all over the world investing in residential real estate in Israel, but why invest in real estate in Israel? Especially when apartment prices are so high compared to the rest of the world.
The answer lies in the following reasons, according to research conducted with iKonnect Properties clients -
Emotion, the Land of Israel is the object of prayers and hope throughout generations. Seen as the home and place of safety for the Jewish and Zionist community around the world. They want to be a part, to have a place. The best expression for that being an owner of land. Something that can be passed on to future generations.
Resale prices of residential real estate in Israel have increased by over 90% on average in the last decade. (15.2% between 03.22 - 04.21 (!!) - According to the Central Bureau of Statistics in Israel.)
Based on the above regarding the resale price in addition to rental income, residential real estate in Israel becomes a pretty good on the financial level.
Real estate in general, is a real thing. Not just stocks on a piece of paper or virtual currency on a hard drive. A safe place for your capital. People will always need a place to live, your property will always have value.
let's focus on return on investment, specifically about the residential market in Israel. The right investment in Israel real estate is usually about finding a property that will yield a high monthly rental income, in a good location. Good locations have been increasing in value quite steadily in recent decades with the increases in demand.
It is also possible to find and purchase an apartment in developing areas in Israel such as Beer Sheva or new settlements and enable a much higher resale returns. Each case must be examined individually in the context of infrastructure and government programs. We strongly recommend that if you choose this channel to consult with a certified real estate consultant in Israel. We offer a free consultation and you are more than welcome to leave details at the bottom of this page.
Another bright spot in investing in real estate in Israel is that the tenant usually pays not only for utilities (electricity, gas, etc.) but the building management fees and even municipality taxes known as arnona.
leaving the landlord with very few carrying costs to on the property aside from basic repairs, the landlord has to pay income tax (Usually 10%) on any property that is collecting more than 5,196 ILS in rent. This translates to approximately 3% - 4 % annual return and it possible to receive a portion of it in the form of monthly payments to the investor.
We see many property owners who buy properties in Israel in places that are tourist centers such as luxury apartments in Jerusalem or apartments on the beach in Tel Aviv.
Renting out the apartment Short term by list the property on Airbnb etc. Even owners from abroad will do this using a local property management company you can contact us if you need such a service. Here the possibilities are great, during peak times and holidays you can reach excellent profits and even double the normal rental income.
This will allow you a good and rewarding investment in addition to a warm home for you and your families while you choose to be in Israel.
At iKonnect Properties we specialize in accompanying investors and families, even if you are not an Israeli citizen.
We invite you to explore our residential real estate projects available for sale in Israel and schedule a free consultation today.
* The above should not replace legal or business advice, before any decision you should consult with your lawyer / business advisor.