Once you have decided to buy a home in Israel, the choice can be a little overwhelming. So there are a few ways to break down the decision-making to help you to arrive at something that works for you.
Understand why you are buying. Is this a property for investment purposes, a holiday home, or a potential landing spot for a future permanent move to Israel? It makes a big difference and by focussing your thoughts you will find it easier to rule in and rule out certain destinations.
Where in Israel do you want to be. This is linked to the first point. You may have a city that you have connections to, you may want to be beside the sea, or you may be planning to rent the place out, in which case you need to consider Israel’s rental market demand in different places.
How am I going to travel around? If you are flying in and out regularly, you probably want to be within a comfortable distance of Ben Gurion airport. If you don’t plan to run a car on a regular basis, look for cities and neighborhoods that are well-served by the bus, train and light rail networks.
How much space do I need? Israeli homes are typically smaller than their American and European counterparts, and the total number of rooms quoted in advertisements generally includes an open plan kitchen/ living room. But it is also very normal for children to share rooms in Israel, and furniture in general is scaled to fit these smaller spaces. If however space is important to you, you will need to look in neighborhoods that offer houses rather than apartments, in smaller villages, and in places away from the center of the country where land is cheaper.
How much will it cost? The average price of a home in Israel is around NIS 2 million, but prices vary wildly between cities and between the center of the country and what is referred to as “the periphery”. Over the last decade prices have risen steadily across the country, and Tel Aviv which is often identified as one of the most expensive cities in the world has an average house price of NIS 2.9 million ($785,000). You also however need to factor exchange rates into your calculations. During an 18 month period between February 2022 and August 2023 the exchange rate moved 18%. Whilst in this example it made the property purchase cheaper, it could of course do the opposite. Remember too that there are a number of hidden costs to buying property in Israel so whatever happens you will need to have more than the purchase price available.
It is of course a daunting decision to buy a property in a market with which you are unfamiliar. As well as answers to the questions above, you will need partners you can trust in Israel to help you with the purchase process. If you organize it in advance, a trip to see potential properties and to meet up with advisors can leave you in the position to manage the rest of the process from outside the country, and to acquire the right home for you and your family.
IsraTransfer can act as your trusted partner to move your money into and out of Israel, offering better exchange rates than banks and a much smoother process.
