FAQ

FAQ

Featured
What is BHII?

BHII - Buy Home in Israel is specializing in the real estate of Israel. We escort our clients from the beginning till the completion of the deal, providing anything needed.

Read more About Us here

What services does BHII offer?

We at BHII offer the following services:
a. Full brokerage service
b. Legal services
c. Mortgage brokerage services
d. Property management
e. Consultation
f. Anything else related to your real estate deal (construction, moving, etc).

Feel free to contact us if you have any questions.

How much do you charge for your service?

Generally speaking, the fees are based on the final property price.
a. Brokerage service: 2%
b. Lawyer service: 0.5-1.5%
c. Mortgage brokerage service: 10,000 - 1%
d. Property management: 1-2 rental months 
e. Consultation: Starting at 149$ (for 30 minutes)

*Depending on the final property price and deal complexity.
**VAT of 17% will be added 

I am interested in purchasing a property in Israel. What do I do?

You can start by contacting us here or filling this form to speed the process. We will get back to you very soon.

Your way to your home in Israel starts here and now.

General
How to buy property in Israel?

Click here for a complete guide on how to buy property in Israel.

1) Preparing:
      a. Calculate your budget.
      b. Consider taking a mortgage
      c. Think of preferred areas, cities, or moshavim
      d. Consider weather, schools, community, public transport, and so on.
2) Search
      a. Make a list of properties to visit with your agent.
      b. Calculate the final cost of the property, including all the fees and taxes.
      c. Take into account land tax (arnona) and maintenance fee (va’ad habayit).
3) Contract
      a. Get a real estate lawyer to represent your interests. Ask your realtor if you don’t know any.
      * It is very important to have a lawyer specializing in real estate.
      b. Make sure you agree with the payments schedule and the rendering dates.
      * Keep in mind that the developer is allowed to delay the rendering by two months.
      c. Sign the contract and transfer the payment and/or the mortgage
      d. Congratulations; you now own a property in Israel!

Generally speaking, buying a property in Israel is not complicated if you have the right people – brokers and lawyers by your side. All you have to do is find a good real estate agent, and he will lead you through the whole process.

Can a foreigner buy and own a property in Israel?

Yes. Foreigners, non-citizens, and non-Jews can buy and own property in Israel. Generally speaking, foreigners can own only real estate built on private land, which is about 7% of Israel’s land. Still, there are always exceptions and ways to overcome these obstacles. 

How do I find a property in Israel?

You can see some listings on our website and on the internet in general, but these are only a few percent of the whole real estate market that offers over 100,000 of different listings.

Let us do the work for you. We are here to provide you with the best options out of the current market.

Contact us here or fill this form to speed up the process.

How much does an apartment cost in Israel?

Prices of real estate in Israel vary greatly, mainly depending on the location.The average price of a property in Israel is about 1.5 – 1.6 million NIS (450-500k$).

What are the property taxes in Israel?

Property taxes are arnona (land tax), va’ad habayit (tenants committee), and ongoing bills of water, electricity, and gas.

What is Arnona?

Arnona is a land tax that is paid every two months. The property size and the neighborhood determine the tax amount. Every local municipality annually updates the price per sq.m. of each neighborhood.
Usually, the arnona varies from 500 NIS for a small apartment to 1,500 NIS and higher for bigger apartments (for two months).

What is Va’ad Habayit?

Va’ad habayit is a tenants committee (an internal council of any building). It is also a monthly payment for shared parts of an apartment complex (condominium) each apartment pays to the committee, such as electricity and water bills, elevator maintenance, cleaning and gardening services, gym and pool maintenance, and anything else concerning the shared parts.
The amount of va’ad habayit depends mostly on the building facilities, starting at about 200-250 NIS for a modern building with an elevator and goes up to 1,500 NIS and higher for luxurious buildings with a gym, pool, spa, and 24/7 guard. 

What are the expenses of buying a property in Israel?

   1. Real estate brokerage service: ~2% (some brokers require a small prepayment).
   2. Mortgage broker: 10,000 NIS – 1% (depending on the mortgage complexity, might even go higher).
   3. Lawyer: 0.5 – 1% (in special occasions might go higher).
   4. Purchase tax: 0 – 10% (depending on status and property price, mostly is 5%).
   5. Property management: 1.5 – 2x monthly rent amount (for investors).
   * Don’t forget to add VAT
   ** Ask your agent for exact numbers.

Is it better to buy or rent a property in Israel?

Buying is always a better option since the mortgage payment is similar to the rent price. Most of the payment is an investment into your own property. 

You can see the comparison here

Is it better to buy a new project or a used apartment?

If your budget allows, it is better to buy a new project or a freshly built one.

Can I buy a property in Israel before making Aliyah?

Yes, you can buy property in Israel before making an Aliyah, even remotely.
Consult your real estate broker on how to do it efficiently.

What are the types of new real estate projects in Israel?

There are several kinds of new projects in Israel:
   a. New project from a developer: new construction, supported and financed by one of Israel’s banks.
   b. Tama 38 project: Complete renovation and strengthening of an old building. The developer completely renovates and enlarges the building. As an exchange, he is granted to add two new floors and sell them for a profit. The apartments are brand new; the building is fresh and strong. Read more here
The bottom line: A good choice, almost as good as a new project by a developer.
   c. Urban renewal: Demolition of an old building or complex and construction of a new building.
As good as a new project by a developer.
   d. Purchasing group (Kvutzat rechisha): A group of individuals joining together to purchase a plot and build a residential building, trying to reduce the costs.
Pros: Lower price
Cons: Risks of unexpected extra payments and group responsibility. 

Can I purchase a property in Israel without visiting (remotely)?

Yes, you can buy a property in Israel remotely, and it is not complicated at all.
If you buy a new project under construction, all you get is illustrations and floor planning. There is no difference where you check them.
For constructed properties, we offer VR (virtual reality) tours and video calls, so that you can check every option on your PC or tablet.
We will help you to find the property, and our lawyer will take care of the legal part, including the payments via the trust account.

Where should I buy a property in Israel?

Israel is a very diverse country. Each area and city has its pros and cons – climate, traffic, facilities, transport, prices, etc.
Consult your real estate agent for the perfect location for you.

Are there any benefits for a new oleh when buying an apartment in Israel?

Unfortunately, there are no benefits to new olim regarding real estate in Israel.

Is it wise to invest in real estate in Israel?

Yes! Israeli real estate is stable, and the demand is very high.
Most of the investors have an affinity for Israel; therefore, they invest not only their money but also their hearts.
Read here for more information about investment in Israel and about our special investment program In-Come Home. 

How to save money buying real estate in Israel?

The best way to save money is to have a professional real estate agent you trust. He will not only save you time and money but also provide you with anything you need.

Ready? Contact us and save some shekels. 

Do I need a real estate brokerage service while buying a house in Israel?

Do you have to hire a real estate broker? No. Should you? Absolutely!
A good real estate agent will help you save time, effort and money, and help you get through every step.
You don’t want to go through all this alone; one little mistake might cost you lots of time and tens of thousands of dollars.
Read “About Us” or contact us here to see how you can benefit from our service. 

Should I have the property checked before purchasing?

It depends.
If you buy a new property, it is wise to have it checked after getting the keys. The property is under warranty, so it’s better to check if everything was constructed according to the specifications and the rules.
If you buy a used apartment, then yes, it is wise to have it checked; however, it is not a must, especially if you buy a freshly constructed one. 

How long does it take to buy a property in Israel?

Assuming that you’ve already found a property and agreed on the terms with the seller, it should take a week or two for the lawyers to make a contract and check the legal stuff, and if nothing serious was discovered, you are ready to sign and finish the process. The rest is only payment and rendering terms.
So if the apartment is for an immediate entrance – a few weeks and the property is yours!

However, there are always things that can delay the entrance – property checking, mortgage, contract disagreements, and seller’s compulsions, and so on.

Most of the apartments, new or used, aren’t handed over right away. Although you can finish the legal part (or most of it) in just a few weeks, you will probably be waiting several months to enter the apartment 

Do I get a warranty for a new apartment?

Yes. The developer's liability is divided into two periods:
1. Test period.
During the test period, the developer must repair the defect unless he has proven that the defect was caused by the owner of the apartment.
The duration of the warranty is between one and seven years, depending on the defect.
2. Warranty period.
During the warranty period, the buyer must prove that the defect is due to the design, the work or the materials.
The warranty period begins with the end of the test period and lasts 3 years.

Mortgage
Can a foreigner get a mortgage in Israel?

Yes. Foreigners, non-citizens, and non-Jews can apply for a mortgage in one of the Israeli banks.

How to get a mortgage in Israel?

1. Open a bank account in Israel (not a must, but it might help).
2. Apply for a mortgage, providing necessary documents according to your country of origin, such as ID, bank statements, income information, and so on.
3. Get pre-approved (ishur ikroni). Keep in mind that ishur ikroni is valid for a certain period.
4. Life and property insurance. After applying for a mortgage, the bank will require the buyer to take life and property insurances.
5. The mortgage will be transferred to the seller’s account according to the contract terms.
To ensure you get everything done correctly, get the right mortgage on the best terms, we highly recommend being helped by a mortgage broker.

Do I have to get a mortgage only from my bank?

No, you can apply to any of the banks, regardless of where your bank account is. You can check several banks, compare their offers, and bargain for the best rates. Or you can just hire a mortgage broker and let him do the job.

How much can I borrow for a mortgage?

If you are an Israeli resident with a local source of income, you can borrow up to 75% of the property value for the first or only property.
Investors and foreign residents usually can borrow up to 50%. However, in some cases, the amount can be increased.

What are the mortgage rates in Israel?

The average rates are about 2.5% (3% for above 25 years period), depending on the loan period and type, age of the borrower, income, and financing percentage.
The rough estimate is about 450 – 500 nis of monthly payment for every 100k nis borrowed.  

What is a tamhil?

Tamhil (mixture, combination) is a mixture of several smaller loans that make up one mortgage.
Each loan has its own rate and can be extended to a different period of time.
Some of the loans have exit fines – you might need to pay an exit fee if you want to repay a mortgage or this specific loan.
Each loan rate is affected by other loans in the tamhil; that’s why it’s important to assemble the best tamhil according to your future plans. 

What are the fees I can expect?

1. Mortgage brokerage fee (option): 10,000 – 1% (depending on the mortgage amount and complexity of the deal).
2. Origination fees: 0.25% (capped at 5-10k nis)
3. Smaller fees: About 1k nis.

Do new olim have mortgage benefits?

In general, new olim have no benefits regarding mortgage in Israel.

What happens when I sell my property?

Selling a mortgaged property isn’t a problem.
You can either repay the mortgage (certain loans have exiting fines) or transfer it to a new property you are buying.

Should I get a mortgage broker?

The process of getting a mortgage in Israel is often long, exhausting, and confusing, not to mention the complexity of the loan structure.
Having a broker is not a must, but as a rule, by trying by yourself, you will be given a mortgage package that is more beneficial to the bank rather than to you.

Our mortgage broker partners, located in Tel Aviv, have helped hundreds and thousands of clients to get a mortgage on the best terms.
Let us take care of the process. We will adjust the mortgage structure according to your needs and future plans and save you time, effort, and thousands of dollars.

If you are about to purchase a property in Israel, contact us and promise yourself a better deal. 

Investing
Can non jews buy or invest a property in Israel?

Yes. Foreigners, non-citizens, and non-Jews can buy, own and invest in real estate in Israel. Generally speaking, foreigners can own only properties built on private land, which is about 7% of Israel’s land. But no worries, there are always exceptions and ways to overcome these obstacles.

Is it wise to invest in real estate in Israel?

Yes! Israeli real estate is stable, and the demand is very high.
Most of the investors have an affinity for Israel; therefore, they invest not only their money but also their hearts.
Read here for more information about investment in Israel and about our special investment program In-Come Home. 

How to reduce costs buying property in Israel?

The best way to save money is to have a professional real estate agent you trust. He will not only save you time and money but also provide you with anything you need.

Ready to save some shekels? Contact us here!

Do you offer property management service?

Yes. We do offer property management services. Please contact us for more information.

Do you deal with commercial properties?

Yes, we deal with commercial properties, including offices, stores, and storage

Click here to explore commercial properties for sale and for rent.

 

 

Lawyer
Do I need a real estate lawyer?

Absolutely! You will have many questions you need answering regarding taxes, fees, contracts, etc.
A real estate lawyer checks the property for any legal issues or pitfalls, warns you if he finds any, and if you insist - he will find a creative solution. Besides representing you legally, your lawyer will take care of property registration, making your ownership official. 

What lawyer should I choose?

First of all – a lawyer that is specializing in real estate, and he better be experienced with non Israeli clients. If your English is not fluent, it is better to find a real estate lawyer that speaks your native language, so it is easier for you to communicate.

If you need a real estate lawyer – contact us, and you will get the best one for you.

Are there real estate lawyers who speak my native language?

Yes! Unless your native language is Latin ;)
We know lawyers who speak native English, Russian, French, German, Spanish, Portuguese, and other languages. 

Looking for a real estate lawyer? Contact us here, and we will get the best real estate lawyer for you.

How much does a real estate lawyer cost?

Real estate lawyer fee is 0.5-1.5% of the property price, depending on the property price and complexity of the deal.

Bank Account
How to open a bank account in Israel

Visit one of the banks that are in your area. You will need to provide certain documents and make a small deposit. If you are staying at a temporary place, go to the branch that is close to the place where you are planning to live. Unlike in other countries, some of the actions require your physical presence in your original branch and cannot be done in other branches of the same bank.

If you can’t visit Israel, you can open a trust account through one of our lawyers and make any required payments.

Can a foreigner open a bank account in Israel?

Yes. There are dedicated branches of many different banks that serve non-residents who live abroad or planning to move to Israel.

What bank should I choose?

There are many good banks that offer services to non-residents. We do recommend choosing a branch that is close to your home or place where you are planning to live since you probably have to visit there quite often during the first period in Israel.

How does a foreigner open a bank account in Israel?

Any foreigner can apply to one of the dedicated branches to open an account. You will need to provide certain documents and make a small deposit.
If you can’t visit Israel, you can open a trust account through one of our lawyers and make any required payment.

What is a trust account?

A trust account (or account in trust) is a financial account opened by an individual (a client) and managed by a trustee (usually a lawyer), for the benefit of another party (anyone to whom the client has to pay), or in simple words, to make different client’s payments without his presence.
Trust account is mostly used by buyers who want to buy a property In Israel remotely, without visiting. 

How to transfer money to Israel?

The most convenient way to send money to Israel is to transfer directly from your bank account to your trust account or bank account in Israel.
To avoid unnecessary tax investigations, make sure you transfer from your own bank account and not from your company or relatives' bank account.
Also, there are broker companies that allow you to transfer money to Israel at a lower exchange rate.
When you use a currency broker, make sure that the company is licensed and regulated as one by the Israeli Capital Market Authority.

Can a foreigner get an Israeli credit card?

Yes. When you have a bank account in one of the Israeli banks, you can ask for a credit card (which also acts as an ATM card). However, you will probably need to deposit a certain amount into the account.

Ready for your home in Israel?
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