The real estate industry in Israel significantly slowed down during the pandemic as more people were holding onto their money to buy necessities. Statistics show that the demand for houses during the pandemic dropped by over 50%. However, things are starting to change in the post-pandemic era as people are now buying houses than ever before.
If you plan to buy a home in the next couple of weeks or months, this article will help you make the right choices. These factors will apply to anyone, whether you are already within Israel or a Jew living in the USA and any other county. Let’s dive in!
- Choose the right neighborhood
The neighborhood you choose will have a huge impact on several other aspects of your life, so take the time to choose the right one. You should consider your family, career, and lifestyle while selecting a neighborhood. For example, if you have young children, consider going to houses that are not so far from the ideal schools you wish your kids to study from.
- Purchase tax
While planning how much you will likely spend on your next house, don’t forget to consider the purchase tax. The purchase tax you will have to pay largely depends on the price of the home. Here are some numbers to look at; the first 1.8 million shekels you spend on a sole residential apartment will be exempted from tax.
You will then pay around 3.5% for the next 300,000 NIS, 5% from 2 to 5.2 million NIS, 8% from 5.2 million to 17.3m, and 10% for any amount beyond 17.3m. These figures are revised annually by the Israeli Consumer Price Index. So, always check out their site to get the latest rates.
- Let the professionals guide you
The key professionals who will help you get the best house include a lawyer, engineer, and real estate broker. Lawyers will help you with most of the legal work, including taxation, validating property ownership, and doing all the necessary paperwork required to transfer ownership into your names. An engineer will help you in assessing the technical condition of the house.
A real estate broker will help you choose the best possible property within your budget. They also help with negotiating with the property owner to ensure you get the best possible price. You will, of course, have to pay these professionals, but the cost is worth it if you want all the processes to be smooth. If you use a reliable real estate agency, you will have access to all these professionals. Take BHII for example – they offer real estate services in several languages, including English.
- Consider your lifestyle and family needs
As you choose a house to buy, don’t forget the type of person you are and of course, your family’s needs. If you are someone who values privacy, you may have to get a house with a high fence and in a relatively isolated neighborhood. You also need to know the kind of setup your partner and children want.