Mortgage interest rates in Israel and their effect on the real estate market.
This article is going to talk about mortgage interest rates in Israel and their effect on the Israeli real estate market.
I would like to start this article by telling you a story.
This week an old friend and new client was telling me how hard it is for them to pay back their mortgage on their 3-bedroom apartment in Rishon LeZion - Israel with these “ridiculous interest rates.” This dear friend was telling me that he thinks he might have made a mistake, maybe he should have stayed renting instead of buying the apartment they live in. He asked me if I would be able to find a buyer to help them pay back the mortgage while they are willing commit to long term rental.
I've also got a phone call from a colleague, he has over 1,200 housing unit being builds in Ashdod including 2, 3, 4 bedroom apartments & penthouses he asked me if he gave me 50 apartments for a very good price can I help him sell them quickly.
I think this gives us a good indicator of atmosphere in the Israeli real estate market today, today more than ever you can find great deals that don't reflect the actual value that the market is willing to pay when interest rates or reasonable. The market has turned from being a sellers’ market to a buyers’ market.
Don't be mistaken, this is a very limited window of opportunity.
The central Bank of Israel will bring down interest rates, it might take three months maybe six months maybe even a year but when the day comes and the buyers come back to this market prices well skyrocket.
Why do I think prices will skyrocket? Because the great demand in this very space limited country did not disappear overnight and when it comes back, it will drive prices back up.
We as humans have a very short-term memory, when COVID hit and no one was buying real estate in Israel prices went down. But when the buyers came back to the market, we witnessa 20% increase in apartment value in Israel by the end of 2022.
Winston Churchill has said “never let a good crisis go to waste”, we are far from calling the housing market in Israel as of today a market in crisis, but these opportunities to buy affordable apartments and homes in Israel is definitely time limited.
So, if you have always had a dream of owning a home in Israel and always thought that one day you might buy something either to live in or just to come visit occasionally. Do not hesitate and fill the form on the side of this page. I will get back to you with great opportunities and walk you through the process. Understanding the market, ensuring that you get the best deal possible while being your guy on this side of the world. I invite you to go on this journey together with me to seize the current opportunities and ensure your and your families future.
Jerusalem real estate has actual opportunities today.
I have just stumbled upon a deal prime AAA location in Jerusalem where a beautiful one bedroom apartment sold for less than $525,000 this was not heard of six months ago.
In Tel Aviv, we are witnessing real estate prices that are finally going down while rent costs are going up making the return even better for investors.
Today we have in our firm a brand new apartment built for the growing short term Airbnb market, at a price that reflects 7.5% cash on cash. This is before the value increase that is expected in Tel Aviv. If you are looking for a good deal in Tel Aviv leave your details and I will get back to you.
In conclusion, the population in Israel is growing rapidly and the land (especially available for building) is very very very limited. This has been driving the Israeli real estate prices up for decades. This might be a once in a lifetime opportunity, that is only available because the current interest rates. I am sure that you reading this is are thinking why not Seize the opportunity and refinance when interest rates go down?
If you would like to explore your options in Israeli real estate I would be happy to be part of your journey, You can call me directly via the numbers provided or e-mail me at Avinoam@ikonnect.com
