Bid to make housing affordable sends buyers scrambling, but will it work? | The Times of Israel

New purchase tax law is coming out of the final gate and as you can see, buyers who were sitting on the fence have jumped down and are scrambling to make purchases quickly to avoid being hit with a huge tax bill that could significantly drive up the purchase price.

The law impacts Israeli buyers and foreign buyers differently. For Israeli buyers, the tax change will impact them when they purchase a second property.  For foreign buyers, the changes impact all purchases.

Notice also the enormous increase in property prices experienced since 2008. In fact, here in Tveria one could purchase a nice apartment for around 250,000 shekels in 2008. Today there is nothing on the market for that amount of money, or, if so, you will need to invest more than this amount of money to make it liveable.

One week left—if you have been visiting this site or contacting us over the past several months contemplating a purchase, now is the time to go to contract. The new purchase tax is tied to the date that you sign, not the date that you complete the purchase! Be in touch today and let us help you get into your dream home at the most affordable price possible. weidner.dvorah@gmail.com

Bid to make housing affordable sends buyers scrambling, but will it work? | The Times of Israel.

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