How can a foreigner buy property in Israel if there is not enough money
Israel’s real estate is interesting not only to those who want to move to the Middle East, but also to investors. Apartment prices are inexorably rising and promise owners a solid increase in capital. The only difficulty is to collect the necessary amount. In Tel Aviv, an average of $ 740 thousand is needed, in other cities it is two to three times less, but still a liquid object cheaper than $ 300 thousand is hard to find. How and where to get the missing amount – in this material.
Mortgage interest is low, the term is long, and the process is simple, provided, of course, that you are familiar with Israeli banking specifics and laws.
Everyone can become the owner of square meters on the Promised Land. It does not matter whether the citizen has a blue passport or not, he lives in Israel permanently or visits occasionally. It is not even very important what country he is a tax resident and whether his local bank account was opened at the time when he had the idea to buy property in Israel. The main thing – the desire, the availability of money for the down payment and, of course, an experienced consultant who will help to understand the local peculiarities. Suppose all of these points are met.
What you need to know a foreigner who wants to buy property in Israel?
The first is that the process of obtaining a mortgage is favorable for non-Israelis who want to finance the purchase of real estate with a loan. Secondly, you need to decide what type of non-Israelis you are. The size of the loan and its percentage depend on it.
Banks look at foreigners
There are two types of non-Israelis: Israeli citizens living and working outside the country, and people who do not have Israeli citizenship at all.
The first category was more fortunate. If the owner of an Israeli passport wants to take a targeted home loan, he can get a mortgage of up to 75% of the cost of the apartment, provided that this is his first apartment in Israel.
Citizens of other countries will have to make a down payment of 50%, the second half will be given by the bank in the form of a mortgage loan.
Such different percentages
The interest rate of the Israeli mortgage is more than sparing: from 1 to 5% depending on the type of loan, the share of own money when buying and the period for which the loan is taken. More than 30 years to get a mortgage will not work, it is worth bearing in mind.
You can count on a mortgage, even if the potential buyer already has a home in Israel. By the way, it can be used as collateral for a loan for various purposes: loans for repairs, for the purchase of another apartment, investment abroad in Israel and so on.
If you purchase a second apartment, you need a down payment of at least 50% of the value of the asset.
See also: Investing in real estate in Israel. Where to invest?
The number of repatriates from Russia has been growing in recent years, which is also evident from the number of calls to our company. Not all new Israelis plan to live in the Holy Land permanently, but the question of acquiring residential or office real estate interests almost everyone.
The reasons are very different. Someone is going to settle in Israel, someone is planning to come from time to time for business or leisure. A large part of the future owners of Israeli square meters plans to earn them by renting out.
Mortgage for the purchase of office real estate or retail space in Israel, too, can be obtained. The loan size for non-residents in the case of the purchase of non-residential premises can be 50-70% of the value of the asset with an interest rate of 3-5%.
Here is what you can buy in Israel right now.
View more 197 similar properties.
What does the bank need
Israeli banks give a mortgage with pleasure, but the rules are respected. The State Bank of Israel strictly outlined the minimum necessary requirements for the approval of the mortgage.
When applying for a loan, the client will need information on income, their origin and regularity. Salary, dividends, income from the rental of real estate or income from individual entrepreneurial activity will be suitable sources of income. Money can be earned in any country, as long as the documents are properly executed and filed.
And here there are subtleties. Some banks (and no more than ten mortgage banks operate in Israel) will require you to translate your Russian documents into Hebrew and notarize, while others will accept papers in Russian. Although at the moment almost a million Israelis speak Russian, the banks are still Israeli.
The country is small, all banks have a common information database, and in case of refusal to issue a loan in one branch of the bank, say Discount, it will not be easy for even an experienced consultant with an ideal reputation to influence this decision and persuade the bank to reconsider.
See also: The procedure for purchasing property in Israel
Unlike mortgages in Russia and in many other countries, Israel has many types of loans.