Anyone following the Israeli housing market over the past month has heard the hype. “The Israeli real estate market is a bubble!“, they cry, “people are camping in the streets, prices will surely fall next week!”, they write on their blogs and op-eds. Yet you have others who will tell you that the market is intact, prices won’t fall, and that, in fact, they will continue to rise.
Over the past 10 days Tel Aviv and other cities throughout Israel have been hosts to protesters numbering in the 10’s of thousands, rallying against […]Read more
Over the past month, the Israeli business press has been flooded with numerous articles and interviews concerning the state of the Israeli housing market. After seeing a steady increase in housing prices since 2007, at an average rate of 12% a year, prices rose over 15% in the last year, prompting many in the press and public to claim a bubble, due to these numbers being out of the norm for a developed country.
Over the past month, the Israeli business press has been flooded with numerous articles and interviews concerning the state of the Israeli housing market. After seeing a steady increase in housing prices since 2007, at an average rate of 12% a year, prices rose over 15% in the last year, prompting many in the press and public to claim a bubble, due to these numbers being out of the norm for a developed country.
While many often complain about the relatively high rate of taxes here in Israel, there is a dim of light – Real Estate Tax. According to a new study comparing Israel, the United States, Japan, France, Russia, Spain, Canada, and Australia, real estate taxes in Israel came out to be the least amongst the group for a first hand apartment. For a second hand apartment and capital gains tax while selling, Israel was in the middle of the pack, not to be expected for a country known for its high tax rates.
While many often complain about the relatively high rate of taxes here in Israel, there is a dim of light – Real Estate Tax. According to a new study comparing Israel, the United States, Japan, France, Russia, Spain, Canada, and Australia, real estate taxes in Israel came out to be the least amongst the group for a first hand apartment. For a second hand apartment and capital gains tax while selling, Israel was in the middle of the pack, not to be expected for a country known for its high tax rates.
While we all know that the days of high yield returns in Central Tel Aviv for the average investor have passed, there are still some viable options to make in excess of 3.5% in areas farther afield in Jaffa and Herzliya. An investor can expect an average return of 2.5 – 3% in Tel Aviv. Unfortunately, sellers have already calculated the maximum the property could ever possibly be worth and take this out on the buyers. Fortunately, there are other options out there.
With the continuous rise in real estate prices in Israel over the past few years, many have begged to ask the question, “when will they fall?”. Those of us in the business get this question almost daily, with each of us giving a different perspective, depending on which market we’re catering to. My take? There are simply less apartment and homes sales being done here in my market in Tel Aviv, though that’s not to say that the prices have been lowering, and for us lucky brokers who have been able to seal deals, business has been good.
With the continuous rise in real estate prices in Israel over the past few years, many have begged to ask the question, “when will they fall?”. Those of us in the business get this question almost daily, with each of us giving a different perspective, depending on which market we’re catering to. My take? There are simply less apartment and homes sales being done here in my market in Tel Aviv, though that’s not to say that the prices have been lowering, and for us lucky brokers who have been able to seal deals, business has been good.