Buying Property in Israel? This Could be Good News for You

Is a Dip in New Apartment Sales Good News for Buyers?

According to a recent Globes article, the number of new apartment sales in Israel is on the decline. The Ministry of Finance and Central Bureau of Statistics reports that while 1.7 percent more new apartments were sold in July 2016  than in June 2016, compared to July 2015, the number of new units sold has fallen by 19.3 percent. Looking at the year so far, the trend seems to be holding, as records show that from January to July, 2016, the number of new apartment sales in Israel was 6.7 percent below the number of sales during this same time period one year ago. The central Bureau of Statistics also reports that demand for housing is on the decline.

The biggest decline in new apartment sales is in northern Israel where new sales decreased by 15%. Following closely behind is Tel Aviv and then Haifa. Sales in the south, though, rose by 12%.

Lower sales across all sectors

In general, according the Ministry of Finance, fewer real estate transactions in general took place during the second quarter of 2016. This is primarily due to the drop in new apartment sales, but also in sales of affordable or starter homes. Investor purchases has also fallen off, with more investors looking to sell their properties than investors ready to purchase.

What does it mean?

IMG-20160720-WA0007If you are looking to buy a new apartment in Israel, it could mean that you will be able to negotiate a better price with the developer. In most cities in Israel, the developer needs sales in order to complete the project. If you look around in some northern cities, particularly in Tiberias, you might see some half-completed buildings. This is because the developer did not sell enough units or the early purchasers have failed to make the installment payments. Therefore, it could be that this is an opportunity for you to jump in and purchase a new apartment in Israel at a more reasonable price. Will it stay this way? Only G-d knows, but in the meantime, if you have set your heart on a new residence, this could be the best time to buy just what you want and have some money leftover.

**See also

 

Buyers Still Investing in Israel Real Estate

20160118_124849Israel Real Estate Market Continues to be Hot

The Israel Ministry of Finance passed a series of purchase tax modifications last year designed to slow down the purchase of real estate by investors. The Ministry’s objective was to open up more homes to young couples who cannot afford the high prices, especially in Israel’s center cities of Tel Aviv and Jerusalem. The thinking was that real estate investors, especially overseas buyers, drive up or maintain the high price structure, squeezing out young couples and others who need more affordable housing. The scheme seems to have worked everywhere but Tel Aviv. According to a recent Globes article, the proportion of real estate investors purchasing property in Tel Aviv actually increased by 17 percent in December.

The report also reveals that the number of properties sitting on the market waiting for buyers has dropped, to the lowest it has been since 2012. This means that it is a seller’s market, good news if you want to sell you home. If you are looking to buy property in Israel, it means that if you find something you like, you need to move quickly.

Be sure to contact us for all of your real estate questions and needs. Our focus is on northern Israel, but we have great referrals we can make to help you with your search in other parts of Israel.

Buy Your New Apartment in Migdal, in the Galilee, Northern Israel

Enjoy the bird’s eye view of the beautiful Moshav of Migdal, in the Galilee, northern Israel.

bldgThen contact us right away to reserve your exclusive, luxurious, new home in this gorgeous Moshav.

 

 

 

 

 

Israel Real Estate Purchase Tax is Taking a Hike

346316Minister Kahlon’s plan to increase the purchase tax on investment real estate purchases is sailing its way through the government channels, with a reading expected in Knesset later this week. The impetus is to bring in more revenue to government coffers and analysts predict the impact on rental properties will be small. The new tax applies to properties purchased for other than residential purposes. If you are coming to live in the house or apartment that you purchase, then this purchase tax increase does not apply to you.

What does this mean for you?

More money.

The new tax will be 8% on the first 1M shekels and 10% on the rest.

Two options: if you are close to purchasing property in Israel it would be a good idea to do so by the end of this month, June, 2015. The tax hike will go into effect on the first of July, 2015. (2) increase your purchasing budget.

If you were sitting on the fence regarding a property you saw here on our blog, now would be the best time to get down and finalize the deal. Contact us today.

http://www.globes.co.il/en/article-cabinet-approve-purchase-tax-hike-on-homes-for-investment-1001044716

 

Dreaming of Building Your own Home in Israel?

ר  _1Have dreams about building your own home in Israel? Here is a rare opportunity to purchase private land that will be legally registered to you upon which you can build the home of your dreams. Private land for building is a rarity in Israel and especially within the boundaries of an already thriving city–Tiberias. All plots will have views of the beautiful Kineret and mountains of the Golan and Galil.

Here are a few details, be in touch with us galilproperties@gmail.com for more information:

  • 100 lots, ready with infrastructure
  • Each lot approximately 400 sqm
  • Terraced, with 4 lots per group
  • Each lot in tabu
  • Religious, recreational and commercial facilities included in price
  • Secured by major Israeli bank
  • Completion in one year
  • Taking reservations now, 20% downpayment
  • Prices depend upon location, between 1,500 to 1,700 NIS per sqm

galilproperties@gmail.com for more info

 

Buy Affordable Real Estate in Northern Israel–Beat the Crowd!

Now is the time to purchase your home or investment property while the prices are still affordable. Already in the center of Israel sales are flying like hotcakes and the prices are soaring. You can still find affordable real estate in Israel in the beautiful northern communities such as Tiberias, Safed, Migdal, Yavne’el, Nof Kinneret, and other moshavim in the Galil. But, it will not stay this way for long. Contact us today at weidner.dvorah@gmail.com and let us help you find your new home in Eretz Israel.

Real estate market sources tell “The Wall Street Journal” that a wave of immigration will heat up Israel’s already hot market.

The Jewish Agency estimates that 10,000 French Jews will immigrate to Israel in 2015, after 7,000 reached Israel in 2014 due to growing anti-Semitism. In response, Tel Aviv real estate market sources have told “The Wall Street Journal” that the potential French Jewish immigrants will further heat up Israel’s already buoyant property market where home prices have doubled over the past seven years.

“January and February are not usually very busy periods because of the winter,” said Eric Toubiana, a co-owner of the Comacom Group brokerage based on Tel Aviv’s Ben Yehuda Street. “But ever since the period of Charlie Hebdo, we’ve had a huge amount of work.”

Toubiana told “The Wall Street Journal” that his business partner had flown to France to deal with all the extra business.

“We are seeing prices that have been resilient to the fact that they are way out of sync with incomes in Israel,’’ said Chaim Friedman, the founder of First Israel Mortgage, a mortgage broker. “In part, that’s due to foreign demand.”

“There’s no doubt that the prices here are expensive, according to every measure,’’ IBI-Israel Brokerage & Investments Ltd. economist Shai Azar told “The Wall Street Journal.” “On the other hand, you have a low interest rate, high demand, and everything that is going on in Europe only adds to the demand. I don’t see a change in the trend in the short-term. But nothing rises forever.”

Published by Globes [online], Israel business news – www.globes-online.com – on February 4, 2015