Buying a home in Israel for Olims

For many olim (expatriates to Israel), buying their own abode is an important and responsible task. When moving to a new country, people want to find an abode, a place they can call their own. However, the process of buying realty in Israel has a number of peculiarities, about which it is worth knowing in advance. From the right choice of housing, the execution of the operation and interaction with the local authorities largely depends on how comfortable and safe olim will be able to settle in a new abode.

Israeli real estate market

Israel’s housing market remains strong despite the war. Buyers are wary of security risks but are still returning to the market. Increases in sales and prices are once again reaching record highs, despite many government measures to cool the market.

In Tel Aviv, the number of transactions with new buildings increased by 71.5%, while the figures for old housing increased by 21.7%. In Haifa, there was an increase of 65 per cent and 9.7 per cent respectively. In Jerusalem, meanwhile, sales of new homes fell by 4.5% compared to the same period last year, while the secondary market saw an increase of 23.1%. As of May 2024, there were a total of 67,472 new properties for sale in the Israeli market, up 18.6% from a year earlier. At the current level of sales, this means that there is enough inventory of new homes to last approximately 17.5 months.

Legal considerations for Olim

Basic legal aspects of buying an abode in Israel for olim:

It is recommended to engage Israeli lawyers, realtors and financial advisors who will help you to conduct the operation competently and take edge of all the benefits. For repatriates there is cash assistance for renting a property. The payments are provided from the eighth month after the move for 4 years. There is also a tax reduction for the purchase of housing. The discount is provided if the property is purchased within 7 years after the move. A preferential mortgage loan is also available. It is given once in the first 15 years after emigration.

The home buying process in Israel

The algorithm of purchasing a house by olim will be as follows:

• Search and choose a house: Determine your budget and your wishes for the house (location, size, number of rooms). Look through listings for sale on websites, realtors or in classifieds. Organise viewings of your favourite options.
• Legal check: Check the legal status of the object (ownership, no encumbrances). It is recommended to hire a lawyer who will carry out all the necessary checks.
• Negotiate the terms of the deal: Discuss with the seller the price, terms, terms of moving and other details. Draw up a preliminary contract of sale.
• Deed preparation: Prepare the deeds required for the operation (passport, aliya certificate) Obtain mortgage loan approval, if necessary.
• Registration of the operation: Have the sale and purchase agreement certified by a notary. Pay a stamp duty of 0.5% of the operation amount. Register the title at the land registry (taabula).
• Obtaining benefits for olim: Apply for taxation breaks and subsidies for new repatriates. Find out about possible mortgage loans and assistance programmes from the polity.

It is important to note that the entire process of buying a house in Land for olim can take multiple months. It is recommended to familiarise yourself with all the subtleties and nuances in advance, and take edge of the help of professional advisors.

To buy a house in Land, you will need to gather multiple important deeds. Firstly, you will need to grant copies of your passport or identity card. This will help prove your right to own realty in Land. In addition, you will need to grant proof of financial solvency, such as bank statements or income statements, which will prove that you have enough money to make the purchase.

You will also need to grant a copy of a deed proving your right to permanent residency in Land, such as an Israeli citizenship or residency permit. This is important as only Israeli citizens or persons with a residence permit can purchase realty in the country.

Additionally, you will need to prepare documentation related to the house itself that you wish to purchase. This may include a legal opinion on the condition and status of the house, as well as info on ownership and any existing encumbrances or restrictions on the realty. You may also need to prepare deeds to prove the price of the abode and the terms of the operation.

Usually, buying realty, you will also need to work with a local lawyer who will help you to properly complete all the necessary paperwork and conduct the operation. The lawyer will also be able to advise you on all the legal aspects involved in buying an abode in Land.

Government benefits for Olim

In Israel, various benefits and programmes are available to new expatriates to facilitate the purchase of housing. These incentives are designed to help Olim adapt and settle.

The system of benefits for Olim when buying an abode in Israel is aimed at facilitating their integration into the new country and creating favourable circumstances for settlement and further residence.

Resources and support for olim-buyers

There are multiple useful tools for returnee who are buying realty:

• Buying Cost Calculator – an online tool that helps you calculate all the costs associated with buying a realty, including taxations, fees, commissions, etc. A mortgage calculator in Israel is available at https://ipotekaisrael.co.il/calculator
• Realty databases – resources where you can browse realty listings across the country, compare prices and features.
• Consultation with a Realtor – it is important to find an experienced and knowledgeable Realtor who specialises in dealing with returnee and will help with all stages of the purchase. There is a database of realtors in Israel https://www.immoisrael.com/agents
• Consultation with a solicitor – it is advisable to consult a solicitor to ensure that the operation is legal and all deeds are correct.
• Mortgage lending info – knowledge of the circumstances for obtaining a mortgage, interest rates and bank requirements.
• Taxation considerations – knowledge of taxation incentives for returnee and the rules for paying taxations when buying realty.
• Assistance from returnee integration organisations – many such organisations grant advice and support at all stages of the realty purchase.

Using these tools will help returnee avoid common mistakes and make the most profitable and safe purchase of realty in Israel. Buying an abode for new expatriates is a challenging yet important step in their lives. Despite the many legal and financial nuances that need to be taken into account, buying an abode of one’s own helps Returnee to settle in the country and accelerates their integration into Israeli society. Of course, this process requires a great deal of effort and financial investment, but it opens up new opportunities for self-realisation and building a future in Israel. Ultimately, buying an abode is an important step towards realising the dream of becoming part of the Israeli community.

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