Israeli Housing Construction Standards Slated for Improvement

346316Israeli Residential Real Estate Construction Industry About to Become Professionalized

If the Minister of Finance, MK Moshe Kahlon, gets his way, Israel will open up its residential construction industry to foreign developers. The plan is not without opposition, but the proposal brought before the Housing Cabinet is designed to speed up the construction timetable, getting that new home in your hands much sooner. Currently it takes around 15 years for developers to complete a new neighborhood, during which time construction prices rise, making that new home less and less affordable. The new effort is also intended to improve construction standards. For foreign buyers and olim from overseas, this could be very welcome news.

According to an article today in Globes, foreign developers would function as subcontractors to domestic builders, bringing in their own construction crew. The foreign developers would be allowed to operate in Israel for five years. While working in Israel, these foreign construction companies would be subject to all Israeli laws, including labor and safety.

The proposal has the backing of the Bank of Israel. Proponents highlight the proposal’s impact on improving construction standards, bringing it to a level of efficiency and perfection known throughout the western world. The government also proposes special grants to developers that adopt European construction standards and train their employees on the latest in construction technologies. Also funded will be a center for construction designed to raise the standard of professionalism and improve the overall housing construction industry.

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

 

Bought your dream house in Israel? Now make sure it doesn’t turn into your worst nightmare – Real Estate – – Haaretz Daily Newspaper | Israel News

Bought your dream house in Israel? Now make sure it doesn’t turn into your worst nightmare – Real Estate – – Haaretz Daily Newspaper | Israel News.

Buy Your Real Estate in Northern Israel

IMG-20121022-00354No matter how you look at it–renting or buying–your best deals are in northern Israel. Here in Tveria, you can rent a great 3-room, renovated apartment, with mirpeset, gorgeous views, furnished, near to synagogues and shopping, and easy downhill walk to city center for only 2,000 shekels per month. Or, you can buy a stunning, 4-room, upgraded apartment on the midrachov of Tzfat, just steps from the Old City’s ancient synagogues and walkways, for only 1.1M shekels. See the difference? What are you waiting for?? Contact us today for a full listing of available properties.

A selection of recent deals in the residential real estate market.

Second-hand apartments sold
Tel Aviv and central region
Tel Aviv:A 90-sq.m. three-room, 27th floor apartment with balcony, elevator and parking on Nahlat Yitzhak St. in Nahlat Yitzhak was sold for NIS 2.14 million. A 100-sq.m., four-room, second floor apartment with balcony, elevator, parking and storage room on Arie Disintsky St. in Revivim in North Tel Aviv was sold for NIS 2.63 million. A 64-sq.m. 3.5 room, third floor apartment with a TAMA 38 agreement near approval to add a security room and enlarge the salon, with an elevator but no parking on Beit El St. in Neve Sharet was sold for NIS 1.49 million (Anglo-Saxon).

Holon: A 60-sq.m. three-room, third floor apartment on Halohamim St. was sold for NIS 940,000. A 100-sq.m. four room, sixth floor apartment with eelevator and shared parking on Eilat St. was sold for NIS 1.22 million (Re/MAX).

Modi’in: A 160-sq.m., 6-room house in Buchman Darom including a 60-sq.m. garden built one year ago with two parking places and storage room was sold for NIS 2.6 million (Shumacher Real Estate).

Haifa and the north
Haifa: A 90-sq.m. four-room, third floor apartment in Central Carmel on Shomron St. was sold for NIS 1.31 million. A 90-sq.m., four-room, second-floor apartment on Vitkin St. in Ahuza was sold for NIS 1.47 million (Re/MAX/City).

Beersheva and the south
Beersheva: A 100-sq.m. four-room, third floor mini-penthouse apartment on Rachel Imenu St. in Nahal Ashan was sold for NIS 725,000. A 113-sq.m. four-room, second-floor apartment on Ha’arim Ha’teumot St. in Ramot was vsold for NIS 890,000.

Rentals
Tel Aviv and central region
Tel Aviv: A 50-sq.m., 2-room renovated apartment with parking was rented for NIS 4,000 per month (Anglo-Saxon).
Modi’in:A 150-sq.m., 5-room house with 100-sq.m. garden, storage room and two parking places was rented for NIS 5,800 per month (Anglo-Saxon).