Tel Aviv Real Estate
Tel Aviv has a very active real estate market. Although the city did not remain unaffected by the global economic crisis, the skyline continues to rise but the prices do too. The cost of a real estate in Tel Aviv is relatively high which is related to the population growth as well as to the fact that only about 7% percent of land in Israel is in private possession. The rest is the so-called Israeli Land which is owned by the state and cannot be sold or transferred in any other way. Fortunately for everyone who would like to buy a home or invest in real estate in Israel, most of the privately owned land that can be bought by anyone without any restrictions is located in major urban centres such as Tel Aviv.
Before Starting to Look for a Real Estate in Tel Aviv
In contrary to the so-called Israeli Land which can be leased in long term under certain conditions, the real estate market in Israel and of course in Tel Aviv is open to everyone without any restrictions whatsoever. Just like elsewhere in the world, the prices are negotiated with the seller who typically sells the property to whoever makes the best offer. There are, however, a few differences to other real estate markets and before starting to look for a property in Tel Aviv, it is highly important to be well informed about how the real estate market in Tel Aviv works, in the first place the pricing dynamics, properties available, legal and financial framework, etc.
Prices and Fees
Real estate prices in Tel Aviv are much higher than in other Israeli cities including Jerusalem. The price, however, depends on several factors including the type of property, its location, size, age of construction, etc. Then there are various fees and taxes which can account for as much as 8% of the property’s value. They include commissions which are paid by both the buyer and seller, lawyer’s taxes and purchase tax.
The Buying Process
You can either search for the perfect property in Tel Aviv yourself and deal with the real estate agent that represents the wanted property yourself or hire an agent to help you with the search. The price for the property is negotiated between real estate agents who hand over the purchase to the lawyers when the agreement is reached. The lawyers draw up the contract for purchase. The payment is handled when the contract is signed by both parties. In Israel, the real estate is usually paid out over a period of several months and the transfer of title is made only when the last payment is transferred.
Things to Consider Before Buying a Real Estate in Tel Aviv
You are highly recommended to visit the real estate you would like to buy in person. Also a good idea is to consider property inspection, especially if you would like to buy a second-hand property. This will increase the cost of the real estate but it can save you a great deal of money by helping you detect/rule out any potential problems with the property.
Mortgage Options
Mortgages for real estates in Israel are available to both Israeli citizens and foreign non-residents. The amount of mortgage is typically about 60% of the appraised value but it is also possible to get a higher amount for new constructions, by taking out a mortgage insurance or/and negotiating with the banks for better terms.