Real
estate investment has never failed to woo investors. However, real
estate investment, irrespective of the country or location is always
fraught with risks. The geopolitical situation, natural calamities and
economic situation continue to create ripples in the real estate ocean.
No real estate investment is free from ups and downs. So, although Israeli real estate is promising, taking diligent steps is advisable.
Tips for Safe Investments
- Considering location is essential for successful real estate investment. For instance: Tel Aviv and Central Israel are popular locations. It comes with the certainty of getting you a significant profit when sold. Moreover, finding a buyer for a property in a prime area like Tel Aviv may not be challenging.
- You also need to consider the yield vs profit while investing in real estate. Considering location alone is not advisable. For instance: Buying an apartment in Tel Aviv may come with a promise of profit on sale to the extent of five percent in the consecutive year itself. For, the real estate prices in Tel Aviv have already touched the skies, and chances of a significant appreciation are low. Moreover, the rental (or yield) may be even lower, at around 3 or 3.5 percent. Conversely, buying an apartment in a more peripheral location may get a profit of nearly twenty percent; thanks to the lower property rates. In fact, the yield could also be high as the property prices are not as high as Central Israel. Therefore, percentage of yield would certainly be higher. So, when yield and profit are better in peripheral areas, an investor with a huge investment can even invest in many small properties rather than one expensive one.
So,
invest in Israel, but with due diligence and consideration of important
factors. Reputed lawyers can help investors with the legal aspects,
besides guiding them through the real estate process.