When Should We Buy Property in Israel?

At a time of great international instability, economic uncertainty and threats to personal safety, this may be the right time to buy property in Israel as an investment for your family. Creative Estates Israel CEO Shaun Isaacson invites you to ask yourself some probing questions.

Are you comfortable with your country’s political leadership? Do you feel that your government is taking international terrorism seriously? Are you concerned about the resurgence of anti-Semitism? With unimaginable events happening all over the world, perhaps you and your family would actually feel safer living in Israel?

Many Jewish people around the world feel reassured by the knowledge that they can always move to Israel if things get too difficult where they live. Since 1948, the Jewish State has promised a Right of Return to all Jews, and many families in the Diaspora have invested in real estate with one eye on the future.

Reasons for Buying Real Estate in Israel

With Israeli hotel prices rising each year and the increasing trend among young Jews to make Aliyah, owning a home in Israel makes sense for many families. Not only does it put you on the property ladder, with an asset that can be converted into a family home in the future, but it also gives you a holiday home and a “landing pad” for children who come to live in Israel.

Owning property in Israel clearly makes economic sense, offering a better return on investment than most other assets. You can borrow money cheaply and fund a mortgage with rental income, or invest savings or an inheritance in rapidly appreciating Israeli real estate.

When is the Right Time to Buy?

The truth is, it’s never the perfect time to buy, because it is almost impossible to align all the economic and personal factors involved in real estate purchase, such as cash flow, exchange rates, market prices and the availability of properties. But it may be the right time for you. Ask yourself these five questions:

  1. Do you want to own a property in Israel?
  2. Are the economic indicators positive?
  3. Do you feel comfortable in Israel?
  4. Do you know your family’s requirements?
  5. Could you organize finance to make it happen?

If your answers to any three of these five questions is “YES” then now is the right time for you to buy property in Israel.

Buying to Rent in Israel

For many investors, the key to making an Israeli real estate purchase is to organize good rental management to insure a good rate of return on your investment. If you can structure your property purchase in such a way that rental income will cover the purchase costs, then real estate in Israel can be a profitable and worthwhile investment. Most importantly, it opens the door for you and your family to consider moving to Israel, by deepening your connection with the Jewish state and keeping your options open.

Contact us today to discuss buying an Israel property to rent.

Shaun Isaacson is a qualified Israeli lawyer, MBA, Real Estate Agent and an experienced property and investments manager, managing properties over the Sharon Region.