Real estate investment in Tel Aviv: overview
As Real-Estate in the US 'corrects' itself from inflated prices, possibly a correction that will take years, the Real-Estate in Tel Aviv is recovering from years of inactivity and depression. I compare the US Real Estate market to the one in Tel Aviv not to anger or annoy. The comparison is to highlight the opportunity in a market that is on the rising side of the cycle, essentially on the other side of the cycle from the US market. But this opportunity is something that will not last forever, it is also not for everyone. Small investors who are not comfortable investing in a distant location will not be interested. But for these who want to take the opportunity to make money, specially if they are familiar with Tel Aviv and Israel, this is the time to take action.
Renovated Bauhaus on Ben Yehuda
Before you jump into this market there are a few things to learn and become familiarize with. Start out by hiring a good Real Estate lawyer and work with a few good experienced brokers. The legal system in Israel is very sophisticated and sometimes complicated issues are part of a deal. The Real Estate law has developed over many years and two empires, the Ottoman (Turkish) and British laws ruled this land for a long time. Then came the Israeli law to complicate things even more. This is not a problem that professionals in the field are unfamiliar with. Experienced professionals know the laws and practices and therefore can guide you to a safe and profitable investment.
A good local lawyer can help you find an accountant and a Real Estate agent. An accountant will be useful if you are buying a multi-unit residential or commercial building. Once you are set on the type of property you would like to buy, accountants and lawyers can advise on the type of Realtor. Fees for legal and accounting should be negotiated at the beginning of the process. These fees run between 1% and 2% of the total investment. Realtor fees are usually lower than in the US and run the the 2% to 3% range, these can be negotiated at the beginning also.
Real Estate in Israel is recorded in the "Tabo" (recorder's office). Tel Aviv's Tabo office is located at city hall in kikar Rabin. Real Estate lawyers are familiar with the listing process and should be experienced in transferring deeds.
Once you decide to invest in Tel Aviv property, my advice is not to cut costs. Hire the right people with the experience, take their advice and make sure you understand all the steps and the issues. As Tel Aviv is going through a renovation wave, as the economy in Israel is recovering from both the technology and the security slumps, there are many great opportunities to invest in prime location and good buildings.
Enjoy your property in the city, come invest in Tel Aviv.... //sam-d-man
Renovated Bauhaus on Ben Yehuda Before you jump into this market there are a few things to learn and become familiarize with. Start out by hiring a good Real Estate lawyer and work with a few good experienced brokers. The legal system in Israel is very sophisticated and sometimes complicated issues are part of a deal. The Real Estate law has developed over many years and two empires, the Ottoman (Turkish) and British laws ruled this land for a long time. Then came the Israeli law to complicate things even more. This is not a problem that professionals in the field are unfamiliar with. Experienced professionals know the laws and practices and therefore can guide you to a safe and profitable investment.
A good local lawyer can help you find an accountant and a Real Estate agent. An accountant will be useful if you are buying a multi-unit residential or commercial building. Once you are set on the type of property you would like to buy, accountants and lawyers can advise on the type of Realtor. Fees for legal and accounting should be negotiated at the beginning of the process. These fees run between 1% and 2% of the total investment. Realtor fees are usually lower than in the US and run the the 2% to 3% range, these can be negotiated at the beginning also.
Real Estate in Israel is recorded in the "Tabo" (recorder's office). Tel Aviv's Tabo office is located at city hall in kikar Rabin. Real Estate lawyers are familiar with the listing process and should be experienced in transferring deeds.
Once you decide to invest in Tel Aviv property, my advice is not to cut costs. Hire the right people with the experience, take their advice and make sure you understand all the steps and the issues. As Tel Aviv is going through a renovation wave, as the economy in Israel is recovering from both the technology and the security slumps, there are many great opportunities to invest in prime location and good buildings.
Enjoy your property in the city, come invest in Tel Aviv.... //sam-d-man
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