Israel is characterized by a significant housing shortage. With an annual supply of 30,000 new properties and a demand of 40,000 per year, the Jewish state shows only 105 housing units per 100 households; a ratio that is among the lowest in the developed world.
Israel has experienced dramatic house prices rises in the past eight years (with the exception of 2011), despite domestic political uncertainty, security threats, and the global financial meltdown. In fact, house prices have risen by 102% (69% inflation-adjusted) from 2006 to 2015.
The main reason for the continued rise in house prices is the supply shortage, due to low construction volumes. Other factors contributing to the house price boom have included the central bank’s expansionary monetary policies, and the lack of alternative investment options.
“Real estate accounts for 19% of gross domestic product directly and another 13% indirectly,” says Elli Kraizberg, a professor at Bar-Ilan University. “Real estate accounts for not less than 40% of the public’s total wealth.”
Invest in Israel real estate with help from an experienced team on the ground. Our Israeli Investment Real Estate partner, Cohen, Pex, Brosh, have extensive of clients in helping foreign investors buy property in Israel.
The figures for October 2016, show that across Israel prices were up by 8%. The average price for a residential home was £317,700.
Mortgage interest rates change all the time. Reaching their lowest level in August of 2015 at prime+2.26% (3.86%). As of today the average mortgage stands at prime+4.14% (5.74%)
The average monthly yield on investment properties is 4%-5%.
Investing in Israel real estate is complex and likely accompanied by large tax
assessments for foreign investors. A vast majority of the land (92%) belongs to the state, administered by the land authority. The other 8% is privately owned by individuals and various organizations such as the Greek Orthodox Church. Therefore it is next to impossible for foreign investors to buy real estate privately in your own name. Practically the first step in any real estate deal involving a foreign citizen is to have a real estate lawyer check the legal status of the property. Our partner organisation has the experience and expertise to assist you with this.
Following an initial investment, the investor is subject to ongoing costs of regulation, property maintenance, and management fees. Each of these costs cut into investment returns, making these opportunities cost prohibitive.
Cohen, Decker, Pex & Brosh (CDPB) our partner organisation in Jerusalem, are reputed for offering professional integrity among their clients.
CDPB have developed a team of professional real estate experts, financial advisers, to develop with Israeli local market expert to build the Income Home Project. This program seeks our and matches foreign investors to Israeli pre owner home seekers.
The home seekers are typically young families, and are pre qualified by the CDPB team. You as the partner investor, will be joint owner in the property, and will support families to get onto the property ladder in Israel.
You the investor will receive a ROI as explained in the contract, without the burden property management.