Property in Israel

The global crisis was over Israel's real estate market is, moreover, grew rapidly doubled, and only increased by more than 22% in 2009 in the midst of the crisis on the Israeli housing prices. The main cause of the continued growth in house prices is a supply shortage due to the low volume of construction.

Other factors contributing to the growth in housing prices began to expansionary monetary policy of the central bank and the lack of alternative investment options.

Now the average cost of an apartment in Israel is NIS 1,423,000 ($ 369,107), and the price per square meter - $ 12,740.

Popular regions and prices

The highest price - the real estate in Tel Aviv, is a standard apartment is 2,573,100 shekels on average ($ 667,428). The cost of housing in Herzliya an average of 2.4 million shekels ($ 633,000), in Jerusalem, NIS 1.95 million, and in the city of Petah Tikva NIS 1,620,000.

The lowest real estate prices in Israel - in the metropolitan area (Krayot) Haifa - NIS 959,200 ($ 248,804). Among the investors is also popular real estate on the Mediterranean coast of Netanya, Caesarea, and Bat-Yam, as well as in the southern most point of Israel, in Eilat, located on the Red Sea.

The process of buying and mortgages

To set ownership of the property, the buyer must obtain an extract from the Chamber of Registration of land registration. Also on municipal documents necessary to check the rights for the construction of the building. After the establishment of property rights and the resolution of any legal encumbrances, the parties conclude a contract of sale. Deposits are not generally accepted in Israel, because the two contracting parties immediately proceed to the conclusion of a binding contract, which already included the potential penalties for non-performance. However, when signing the contract you must make an initial payment (usually at a rate of 20-50% of project cost).

Foreigners can apply for a loan or mortgage (mashkanty) on a par with the country's citizens. According to Israeli government programs mortgage rate is 3-4%, commercial banks can lend and under 7% per annum.

Taxes and fees when buying

In addition to the value of the object to be added mandatory payments (taxes, fees, duties). So, the buyer must pay the purchase tax (5%) and registration fee (0.20% + 18% (from the amount of tax) VAT). Legal fees (1-2% of property value) is repaid by the buyer and seller in equal shares.