
One of the most popular countries in the world, Israel is a land full of foreigners.
Every year thousands of Jews enter the land of Israel. Not just that, people conducting business across the world from countries like America, Great Britain, and others also come and live in Israel for business and other purposes. While buying a home in Israel is not a tough task, you have to be careful about the tax brackets. Usually, foreigners pay 8% of the value whereas others pay 10% or above. Not just that, the laws keep changing over time. But these small issues should not stop you from buying a home in Israel.
Israel is a beautiful place to be and we can suggest you a few tips so that you can buy your dream home in Israel.
Identify, Choose & Evaluate Your Apartment
Make sure you look at your options carefully before you choose an apartment. There are several websites that provide both second-hand and new apartments. You can also attend apartment inventories where you can speak to new people and weigh your options a bit. However, be careful who you make your deal with, especially while dealing with brokers who have licensed properly. You should also consider factors like the school district, budget, neighborhood, physical appearance i.e the technical specifications of the apartment, zoning, legal status, etc.
Negotiate
Once you have found your apartment, you should go ahead and negotiate a little bit. In a country like Israel, people don’t pay after simply asking the property price. Most sellers also anticipate buyers who want to negotiate the price and even set their tasks much higher than what they expect. This could be a bit different from buying a property in another part of the world. You could take suggestions from friends and family or those who have lived in Israel for long enough to know about the real estate scenario there. In case you aren’t able to come to a conclusion by any chance, you could give the property to another person.
Find Yourself A Good Lawyer
The next most important thing you need to do is find yourself a good lawyer who can back you up during this journey and give you a fair understanding of the legal process. Regardless of whether you are thinking of buying a house in Modiin or anywhere else, you have to keep a lawyer who will help you with the legal proceedings like paying application fees to the builder who can reserve the apartment for you.
Registration
Once you have your lawyer, he will be able to help you with the next part of the process which is the apartment’s registration. Once that is done, you will just have to pay the taxes, and then you can move into your apartment!
Tax Payments
In Israel, there are property taxes you have to be aware of before you buy your apartments. For example, every property buyer has to be aware of terms like Mas Rechisa, a tax payment process that drastically changes the apartment cost. This will have to be paid within the first few weeks from the contract signing. You should also be aware of how much is yours so that you can make all the payments on time. Some of the other taxes also include Vaad Bayit, Amona, etc.
Other Fees
Several apartments in Israel also come with a commission price of 1.5%. So, in case you are purchasing a property from a developer, you will be required to pay 1.5% of the cost. You will also need the guidance of those who make excellent lawyers.
They can also help you navigate all the contractual details which will cost you anywhere between 0.5 to 1.5% of the property tax. In addition to that, there might be other fees that you may have to consider like property inspection costs, foreign currency transfer, etc.
Even though this process may seem simple and fun, you have to make sure you remember all your legal rights before you get into the house. Do inspect your apartment before entering and do not let anyone take advantage of your property rights.