Is it the right timing to buy an apartment in Israel
Many people ask themselves now a days if it the right timing to buy an apartment in Israel or whether it is worth investing the money in the capital market or elsewhere. Apparently the interest rates are high and therefore the financing costs are relatively expensive and because of that, you can also get reasonable interest rates depositing money in the bank. Added to this is the horrible murdering that occured in Otef Gaza and the an unevitable war that followed, which increase the uncertainty that investors dislike. Apparently there are all the reasons why not to invest now in real estate in Israel, but to invest in other solid channels.
Let us suggest some some excellent reasons why we believe you should buy an apartment for living or investment in Israel right now:
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The war "drove" foreign investors out of the country, and on the other hand, the number of apartment sellers did not decrease, so there is a significant excess of apartments for sale compared to potential buyers, which pushes apartment prices down and makes it possible to buy apartments below the market price.
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Tourism in Israel has stopped almost completely, which causes tens of thousands of Airbnb apartments (mainly in the Tel Aviv area ) to be abandoned and put up for sale, which further increases the supply of apartments for sale and pushes prices down.
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The current situation is temporary and it is clear that after the war and in the long term in general, apartment prices, especially in the demand areas such as Tel Aviv and Gush Dan, will continue to rise. Apartment prices will not rise by 18% per year as they have done in the last two years, but it is certainly possible to assume that they will rise by 5% per annum. Adding up the high rental fees paid with expected prices uplift, will lead to a great deal (much more than the bank interest rates today which barely cover the inflation rate).
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The Bank of Israel decreased the interest rate for the first time and is expected to continue doing so. Decreasing interest rate will reduce the future financing costs of mortgages / financing and will bring back demand from investors, whic is expected to increase the future price of apartments.
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The excess supply of the apartments and the longer average time for selling apartments, cause a clear price reduction, which allows sophisticated buyers to buy apartments below the market price (and our services Real Estate Investment Consulting will help you find the most profitable apartments for purchasing).
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The amount of renters, mainly in Tel Aviv, has not changed substantially, therefore the demand for rental apartments has not changed and respectively the rental fee will remain the same.
Of course, the feasibility of purchasing an apartment for living or investment depends on the individual financial situation, stage of life, the amount of money available before financing and other characteristics. We will be happy to discuss your specific needs and advise you in buying an apartment (or selling an apartment you own).
You are more than welcome to contact us by phone at the following numbers: 052-3783636, 054-6555892
