Purchasing a house in Israel can be a great achievement. However, the process of buying the property while you are outside the country can be challenging. This article lists the DOs and DON’Ts of acquiring a house from abroad.
Top 9 DOs
Contract A Professional Team to Act on Your Behalf – When buying a house while abroad, it is necessary to seek the services of experts like a real estate agent, a lawyer, an insurance agent, and an interior designer to guide you through the entire process to ensure it is seamlessly.
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Consult With a Real Estate Attorney – This professional will help you solve any arising contractual issues and guide you on reporting tax to relevant authorities.
Do Your Own Research – Although you have a great professional team behind you, it is important to do your homework to find out how the property acquisition process works in Israel.
Sign Documents Only After Your Lawyer Reviews Them – Any legal-binding documents should be signed after your lawyer goes through them and gives you the green light.
Understand the Various Mortgage Options Available – Financial institutions in Israel offer different types of mortgages. Therefore, exploring each to discover their benefits and bottlenecks is vital. You can hire a mortgage broker to guide you on which option suits you better.
Find Out the Property’s Appraisal Value Before Signing the Contract – It is worth mentioning that banks offer you a mortgage depending on the property’s appraisal value. You can hire a professional appraiser to determine the appraisal value of the house you wish to purchase. In the event the value is lower than your expectations, you will need to make a bigger down payment.
Make All Financial Transactions Through a Reliable Bank – For seamless financial transactions between you and the house owner, it’s crucial to execute them via a regulated bank. Moreover, find a bank that charges low fees for international transactions so that you can save some shekels.
Engage With Your Interior Designer – If you think the house you want to buy needs to be upgraded before moving in, you can consult a professional interior designer to guide you on ideal design concepts for the house.
Do Purchase a House in Israel – Along with being a proper financial investment, acquiring a house in Israel helps you to connect with the rich Jewish traditions and heritage culture.
Top 5 DON’Ts
Do not Assume Anything – The process of buying property in Israel keeps changing. Therefore, do not assume it’s working just the way it was before you left the country. Instead, review it to identify any changes.
Do not Use Google to Get Answers Related to Tax or Legal Questions – The possibility of advice not given by a professional being inaccurate is very high. Therefore, you can get a lawyer to guide you on legal or tax matters rather than relying on Google.
Avoid Signing Zichron Devarin – In Israel, Zichron Devarin is a binding purchase contract that must be reported to the country’s tax authority within a month. Moreover, it requires the buyer to pay purchase tax within two months, even if they have not entered a full purchase agreement with the house owner.
Do not Approach the Bank Directly to Secure a Mortgage – Financial institutions are businesses, which means they put their interests first. Therefore, what may appear to be a good deal may carry hidden costs and risks. For this reason, it’s advisable to consult with a mortgage broker to help you find the best mortgage deals.
Do not be Discouraged – Until this point, it is likely that you are finding the process of buying a home in Israel to be hectic. However, with good preparation and guidance, you can seamlessly get a house in Israel. And with the growing economy, owning property in Israel can be a rewarding investment in the near future.