Ready to Make a Real Estate Investment in Israel?



ONLY 650,000 NIS

This is a very affordable home in the Holy City of Tveria, located within a very easy walk to the city’s main shopping streets, the outdoor market (shuk), and downtown commercial center. The apartment is located in a neighborhood filled with synagogues, a mikveh, kollel, and several other places for learning day and night. Outside of the neighborhood, one can easily walk to Chabad House, two other historical synagogues on the waterfront, and the Karlin synagogue. Surrounding the neighborhood are the gorgeous hills of southern Tveria, where you can hike along trails and explore ancient caves, or hang out with the horses and cattle.

The apartment itself is a steal. Listed at only 650,000 NIS, this gem is on the second floor, 120 sq meters, 2 bedrooms, two balconies, kitchen, one bathroom with shower and a second bathroom with sink and toilet. You will love the view of the Kineret from the balconies. The property is in good condition, ready to move in or rent out. It would be a very good investment, as rental properties in this neighborhood are hard to find. Visit our Hot Properties in Tiberias page for more photos. ONLY 650,000 NIS

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Buy Affordable Properties in Tiberias, Israel

The housing market in northern Israel is strong, evidenced by sales and rising prices. For new residents, and savvy investors, northern Israel is THE best place to plant your family or savings. However, as with all things, there is the time to catch the wave and the time to miss it. From just a few years ago, prices for some properties in Tiberias for instance, have doubled. So, if you are looking to make a purchase with a small budget, there is no better time than the present, and this present time will never come again. There is no evidence of any downturn or slowing of the market in this sector of the country, especially as Israel continues to face a housing shortage.

Here is a new listing in Tiberia, as an example of a good buy with limited resources. The apartment consists of 2 bedrooms, salon, dining area, balcony and full bathroom. It is completely upgraded with new, porcelain ceramic tile floor in kitchen, dining and salon, and wood flooring in the bedrooms. The stovetop is built into the counter, and when you buy the apartment you also receive all the furniture, appliances and furnishings!  The building is located directly across from beaches, and within an easy, enjoyable 5 minute stroll from the heart of the city and all the other amenities. The apartment is currently rented, until spring, so it is perfect for an investor or someone looking to secure a home now for aliyah later. The building has 24-hr security, parking, Shabbat elevators, minyan in the lobby, exercise room, and more. Only 390,000 shekels, or, at today’s exchange rate, just a little more than $100,000 USD.

Stay in touch with our blog and contact us for more information on other great saving opportunities.

Investment properties in Israel–make sure you rent them out!

mailFor some time now, government officials and policymakers have been searching for a solution to the severe rental housing shortage in Israel. Several housing advocacy groups successfully drew a correlation between the lack of affordable rental housing and the plethora of empty apartments–dwellings purchased by overseas buyers who visit Israel for Chaggim and simchas, but do not rent out their homes in between visits. It was established that these “ghost apartments,” were creating a negative impact on the housing market, as well as, on neighborhoods, as a loss of residents means a loss of revenue for small neighborhood businesses.

yerushalayimnewaptsThere are a total of approximately 46,855 empty homes in Israel, the vast majority of them in the center: Jerusalem with 3,429, Tel Aviv with 4,746 and in the north–Haifa, with 3,445. The solution? taxation. If your apartment is sitting empty for 9 months out of the year, you will be required to pay double the arnona–municipal tax. Policymakers hope that if absent landlords face the prospect of double taxation, they may be inclined to rent out their homes. It is not a policy of punishment, but one of incentive to help with the nation’s housing shortage, plus to bring vitality to local neighborhoods. The policy will be re-evaluated after two years to see if it has met its targets.

Living facing south (1)Best solution? come often and stay in your home. Second best? rent it out. It does not have to be rented out on an annual lease–vacation rentals will suffice, and in this way you can still have access to your home when you come to Eretz. And, the vacation rental does not have to be constant to save you from this tax increase. A Shabbat or two a month will be sufficient. Cities will be using the electricity bill to calculate if your apartment qualifies for the double taxation. If you live in Israel, and this is a second home for you, it will not be subject to the double arnona charge. It may turn out that this solution is no solution at all for the affordable housing shortage, unless absent landlords decide to avoid the double taxation and rent out their homes long-term. But for many of these empty apartments and houses, the rent would be beyond the reach of the very population the government seeks to help.

In the meantime, if you have property in northern Israel, give us a call or send us an email to discuss our property management services. We can save you the double taxation and even put some money in your pocket, iy”H.

New Park to be Created on Shore of Kinneret – Latest News Briefs – Israel National News

New Park to be Created on Shore of Kinneret – Latest News Briefs – Israel National News.

Israel Real Estate Market Heating Up

Israel’s real estate market heating up
Bank of Israel: NIS 4 billion in new mortgages were taken in each of May and June, 18% more than the 12-month average.
Irit Avissar 7 Aug 12 18:56
The real estate market appears to have been heating up in recent months. Bank of Israelfigures state that an average of NIS 4 billion in new mortgages were taken a month in May and June 2012, compared with the monthly average of NIS 3.4 billion for the preceding 12 months. The monthly average of new mortgages in May-June was 28% higher than in January-April and 18% higher than the 12-month average.Households’ mortgage portfolio totaled NIS 212.5 billion at the end of June, up 3.7% from the end of 2011.

The average new mortgage was NIS 578,000 in the second quarter. Notwithstanding the market’s volatility, the average mortgage has been stable, rising 3.5% compared with the first quarter. The average mortgage period of 20.7 years did not change over the preceding year.

The most common home prices were NIS 1.2-2 million in the second quarter, and 35.5% of mortgages were for buying homes in this price range. 12.4% of mortgages were for buying homes for less than NIS 800,000, and almost 30% were for buying homes that cost more than NIS 2 million, a third of which were for homes costing more than NIS 3 million.

The average loan-to-value (LTV) ratio was 58.4% in the second quarter, slightly higher than the 12-month average of 57.9%. This figure demonstrates why Israel’s housing market is considered conservative; for the sake of comparison, during the housing boom in the US, most mortgages were granted at an LTV of 80%. Only 6.7% of new mortgages granted in the second quarter had an LTV of over 75%, unchanged over the preceding 12 months.

On the other hand, however, 41.6% of mortgage takers obtained a mortgage with an LTV of over 60%, the level that the Bank of Israel defines as highly indebted. The figure is even more worrying when cross-referenced with the value of the homes bought: 60.5% of people who bought a home for less than NIS 800,000 have an LTV of over 60%. In other words, people with limited means buying less costly home need the largest proportional mortgages to do so.

In contrast, wealthier people need to take on proportionately less debt to buy more expensive homes. In the second quarter, 37% of people who bought homes for NIS 1.2-2 million needed a mortgage with an LTV of over 60%, and 26.5% of people who bought homes for over NIS 2 million needed such a mortgage.

In the second quarter, the monthly mortgage payments of 41% of homebuyers amounted to 30-60% of their income, and the monthly payments of 5% of homebuyers were over 50%. The monthly payments of 54% of homebuyers were less than 30% of their income. If expectations of an economic slowdown are taken into account, monthly mortgage payments could become a serious problem for many households.

Nevertheless, there was no increase in problem mortgages during the second quarter. Mortgages in arrears by over 90 days totaled NIS 2.6 billion, 1.2% of outstanding mortgages. Mortgages in arrears rose by 1% during the first half of 2012, even as total outstanding mortgages rose by 3.7%. This is a historically low figure, implying good news about borrowers’ ability to repay their mortgages.

Nonetheless, it should be remembered that when a family falls on hard times, the mortgage payment is the last thing to be affected, and families will sacrifice almost anything else first. It is quite possible that as the economic situation deteriorates and unemployment rises, there could be a jump in mortgages in arrears as borrowers run out of options to repay them.

Published by Globes [online], Israel business news – – on August 7, 2012

It’s not just us telling you the market is great in Israel!!

Israel world’s third hottest real estate market
CNBC places Israel third behind China and Hong Kong on five year home price rises despite a reported 1.2% fall in 2011.
Einat Paz-Frankel 23 Apr 12 18:17
Despite the affordable housing protests, Israel is holding on to its spot as the third-hottest housing market in the world according to a survey by CNBC, based on data from real estate agents Knight Frank. The survey found that house prices in Israel jumped more than 21% in 2009 and16% in 2010.Israel was placed third with 5 year growth of 54.5% beating Singapore into fourth place with five year growth of 50.5% but well behind China in top spot with five year growth of 110.9% and Hong Kong in second place with growth of 93.7%.

CNBC noted, “High home prices in Israel led to a series of protests in 2011 with demonstrators asking the government to intervene to cool the market. Thousands of protesters made headlines last July to voice concerns over a housing shortage and high rentals. The demonstrations seem to have had an effect on property prices, which fell 1.2% in 2011, according to Knight Frank.”

But CNBC sees home prices rebounding saying, “However, after an interest rate cut from 3.25% to 2.5%in February, there appears to be resurgence in property demand, with new mortgages issued by banks jumping by more than 14% in March compared to the two pervious months.”

Published by Globes, Israel business news – – on April 23, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012