When buying or selling real estate in Jerusalem, what is the negotiation process?
Typically in Israel, when buying or purchasing a home, flat or any type of property, negotiations are held in meetings face to face or via brokers or lawyers. Offers are not necessarily made in writing. Keep in mind, only a signed contract is legally binding. However, you never sign a Memorandum (“Zichron Dvarim”) without your lawyer’s approval.
I've heard that real estate is one of the most reliable long term investments one can make. What return on my investment should I expect when purchasing a residential apartment, house or property in Israel, and more specifically, in Jerusalem?
Investments in real estate are sound investments for long term returns. Unlike the real estate market in most countries, in Jerusalem you will find the rental return rate is between 3-5% of the property value, depending on the location of the property in Jerusalem.
In what way is the selling and purchasing process different in the Israeli market compared to the U.S. or other countries around the world?
Indeed, there are many differences between the real estate market in Israel and the markets in the U.S., Canada, Europe and globally. These differences are the result of legalities, economics, or simply a matter of a different mentality. For example: most real estate markets around the world have one currency, however you will find in Israel pricing is in NIS, Dollars or Euro. As a result, you need to add to the calculation conversion fees. Don’t be surprised if the broker represents both sides of a transaction. It is not uncommon in Israel. Long term rental contracts here in Israel are usually 1 to 2 year contracts, but there are also exceptions of course. Another example is, when purchasing a property, be it a home or a flat, in Israel, note that it usually will not include appliances or closets. For more information, don’t hesitate to contact us. We are aware of how intimidating it is to purchase or sell properties in a foreign real estate market. With over 30 years experience, including many over-seas clients in addition to our local clientele, we will guide you through the entire process.