Real estate in Israel has been enticing investors from the past few years. In fact, even foreigners are investing in the real estate market in Israel in a bid to make money. What’s more, rules and regulations for foreigners are not too stringent, making it easy for them to earn an attractive ROI on real estate investment.
Points to Ponder
However, investing in a foreign country is not as easy as investing in your home town. Lack of knowledge often puts investors in a soup.
So, here are a few points foreign investors must consider while investing in real estate in Israel.
- Location: The risk and ROI on real estate investment is primarily dependent on location. For instance: Investing in an apartment in Tel Aviv is free from risk. However, the ROI on investment may be low, as the prices of real estate have already touched the skies.
Other point investors must consider while choosing the location is the purpose of investment. If it is purely financial, then the area and price matter. Conversely, if the purpose is for residence, then neighborhood, school etc must be considered.
- Tax Policy: The taxation laws in Israel vary according to number of apartments owned. So, if you are investing in more than one apartment, it is advisable to invest in few expensive apartments than invest in many cheap apartments.
- Interest, rates, loan and mortgages: The past few years have seen Israel offering loans at attractive interest rates. In fact, banks were more than willing to lend for real estate investment. However, with time, interest rates have soared upwards and banks are not so willing to give out mortgage loans. As the scenario is not the same anymore, it is advisable to work out the math before making a significant investment.
To steer away from probable pitfalls of real estate investment, it is advisable to hire a real estate lawyer for assistance and advice in real estate investment.
The Aharoni Law Offices 