Israel is a wonderful place to settle down. Hence, a lot of people are migrating to this place because of its aesthetic value and high living standards. But buying real estate in Israel can be a confusing task for the immigrants, as they might not be aware of the property laws in this place. Hence, we list some of the important things you have to consider when buying real estate in Israel.
Choosing A Community
The first thing you have to consider when buying a property in Israel is to decide the community you want to settle in. There are various factors that can go into selecting a community in this country. They include prices, climate, public transportation, accessibility to basic amenities, employment opportunities, quality of life, etc.
Make sure that the area you choose has all the facilities that are required for convenient living. Sometimes, joining a community that has natives from your home country can be ideal, as it can help to make the absorption easier. This can also help your children to make the transition easy.
This can include various factors. Therefore, you have to be aware of them for getting a property at the best rates. Some of the important factors included in the calculation of costs are listed below:
Purchase Tax: It includes the tax you have to pay based on the value of the property you are buying. In most cases, you will have to pay the purchase tax within sixty days after signing the contract.
Capital Gains Tax: This tax is applicable if you are selling your property in Israel to buy a new one. In this case, you must pay Capital Gains Tax that is also called Land Appreciation Tax. If you are selling your property at a higher rate than the purchase rate, then you have to pay almost 25% of the net gain. Some exemptions or leniencies are available from this tax in certain circumstances.
Legal Fees: Buying real estate in Israel can be a complex process. Hence, you might need the help of a legal advisor in certain circumstances and you may have to pay the legal fees associated with hiring a lawyer.
Commission Of the Real Estate Agent
A real estate agent can charge a commission of 1.5-2% (plus VAT) on the purchase price. In certain situations, you will be able to negotiate this amount.
Purchasing real estate in Israel can be a complex task. There are different factors that you have to consider when buying a property in Israel. If it is too complex for you to handle, then do not hesitate to seek the help of a lawyer.