Buy-It In Israel» Guide to Buying, Building and Maintaining Your Property in Israel

Tax changes for the Israeli real estate market in 2011

Buy-It In Israel Staff — Tue, 11 Jan 2011 10:15:39 +0000

Israel is in the process of enacting a number of tax changes for 2011 in an effort to cool down spiraling Israel real estate prices and boost the supply of housing in the country. Some of the tax changes, which have come into effect from January 1 this year, will make it more expensive for investors to buy property in Israel, and others are intended to accelerate the sale of apartments and encourage new construction. Most of the tax changes are still in the process of a legislative procedure but are expected to be applied retroactively from January 1, 2011.

Tax changes for the Israeli real estate market in 2011 is a post from: Buy-It In Israel about real estate

Bank of Israel raises cost of large mortgages

Buy-It In Israel Staff — Sun, 31 Oct 2010 13:50:00 +0000

The Bank of Israel this week announced new measures to tighten the conditions of mortgages granted at floating interest rates, which will make large loans of more than NIS 800,00 more expensive. The new directives for the banks were formulated to moderate the persistent increase in property prices over the past few years and the growth in housing credit that exceed increases in average household income. Since August last year to this August house prices have risen by an average of 19 percent and interest rates have been at a record low.

Bank of Israel raises cost of large mortgages is a post from: Buy-It In Israel about real estate

28% of homebuyers unveil defects in purchased homes

DebbieG — Sun, 12 Sep 2010 10:48:42 +0000

Only a third of home-buyers of second-hand homes in Israel are having professional checks done before purchasing a home, according to a survey conducted by Nest Value. The survey revealed that 28 percent of buyers of second-hand homes in Israel when moving into the home discovered problems and defects in the home that they did not know and were found only after signing a purchase agreement. About 90 percent of the unveiled problems are related to construction and building defects in need of repairing and 10 percent are related to problems of environment.

28% of homebuyers unveil defects in purchased homes is a post from: Buy-It In Israel about real estate

Professional real estate appraisal services

Buy-It In Israel Staff — Mon, 06 Sep 2010 09:49:29 +0000

Buying, or selling a property or investing in real estate in Israel is a complex process, which requires an understanding of the Israeli real estate market and familiarity with laws, taxes and government regulations in Israel. Before entering into any real estate transaction in Israel, it is recommended to engage in comprehensive checks in an effort to unveil the characteristics of the property, uncover unanticipated "surprises" and eliminate potential dangers, while thereby averting hidden costs.

Professional real estate appraisal services is a post from: Buy-It In Israel about real estate

New home prices fall by 0.9% in June

buyitinisrael — Sun, 01 Aug 2010 11:41:09 +0000

The trend of a decline in prices of new homes reported from the beginning of the year continued in June, according to an economic report by Israel's Finance Ministry. The median price of new homes dropped by 0.9 percent in June. A geographical comparison found that the decline encompassed most areas around the country apart from Haifa and Rehovot. The area which saw a sharp fall in Israel real estate prices in June was Beersheva.

New home prices fall by 0.9% in June is a post from: Buy-It In Israel about real estate

Effect of August interest rate hike on prime loan mortgages

Buy-It In Israel Staff — Thu, 29 Jul 2010 13:41:53 +0000

For the first time in four months the Bank of Israel this week raised interest rates for August by a quarter percentage point from 1.5 percent to 1.75 percent in a move to cool Israel real estate prices which are feared to develop into a bubble. Over the past year prices in the Israel housing market have risen over 20 percent and the Bank of Israel warned recently that if they continue to rise at this pace a bubble will develop.

Effect of August interest rate hike on prime loan mortgages is a post from: Buy-It In Israel about real estate

Homebuyers’ confidence in Israeli construction companies returns

Buy-It In Israel Staff — Tue, 27 Jul 2010 20:01:51 +0000

More Israel real estate buyers are again purchasing apartments and houses from contractors following the changes in the Israeli Sales Law, which seeks to protect the interests of new apartment buyers. In 2009 and over the course of the first five months of 2010, there is a rising trend in the rate of new apartments bought from contractors compared with 2008, according to a survey by the Contractors' Association.

Homebuyers’ confidence in Israeli construction companies returns is a post from: Buy-It In Israel about real estate

Interest rates in Israel – a look at historical and current data

Buy-It In Israel Staff — Sun, 18 Jul 2010 10:13:07 +0000

In Israel, the rate of interest is announced by the Bank of Israel at the end of every month. These announcements have been made since 1991, and provide the commercial banks with a benchmark for their rates on local-currency unindexed deposits and credit. This rate also affects the banks' prime rates. In the last few years prime interest has been about one and a half percentage points higher than the interest rate announced by the Bank of Israel. Prime rates are particularly important to mortgages linked to the prime interest rate. A mortgage linked to the prime interest rate based on the Bank of Israel rate is usually taken out for a period of up to 25 years.

Interest rates in Israel – a look at historical and current data is a post from: Buy-It In Israel about real estate

The cost of bureaucracy in Israel

Buy-It In Israel Staff — Thu, 15 Jul 2010 09:28:28 +0000

The bulk of bureaucracy involved in the process of issuing permits in the new construction sector makes up nearly six percent of the purchase price of a real estate in Israel, according to a study by the Israeli Contractors Association. Bureaucratic processes and delays in the approval of construction permits with which a contractor has to deal with, generates an additional cost of NIS 90,000 for the individual buyer to the price of an average four-room apartment at NIS 1,500,000.

The cost of bureaucracy in Israel is a post from: Buy-It In Israel about real estate

Understanding the Madad – Consumer Price Index

Buy-It In Israel Staff — Wed, 14 Jul 2010 08:10:16 +0000

The Madad, which is the Hebrew for Consumer Price Index (CPI) or rate of inflation, is followed very closely by Israelis since movements in the monthly index affect nearly every aspect in life from salaries, mortgages, housing, transportation costs or prices of fruit and vegetables, and other expenses. In brief, a number of very important income and other expense items of every household are linked fully or partially to monthly or quarterly inflation.

Understanding the Madad – Consumer Price Index is a post from: Buy-It In Israel about real estate