Choosing the location of your future home in Israel is a crucial first step. Israel is home to many and diverse communities, as well as cities and towns with very different characters. That’s why it’s important to first understand the unique “DNA” of each place you're considering – only then should you start your search. Much of this will be defined by your particular needs and preferences. Whether you want to buy or rent, whether you are religious or secular, a young family or student, looking to retire or beginning or continuing a career, and even your level of Hebrew proficiency. These are just a few of the issues to consider in deciding where you want to live.
After selecting a region, it’s time to find a reliable and experienced real estate agent. If you don’t already have one, look for brokers, project marketers, or real estate consultants who can offer detailed information about the area and highlight the most attractive available projects. A trustworthy and well-regarded expert is essential. They’ll help you find the right property and guide you through the options.
Next, and just as important, is the legal professional: your lawyer. A specialized real estate lawyer will represent your interests throughout the buying process, including dealings with brokers. Many buyers might prefer to hire a lawyer even before contacting a real estate agent to ensure the agent’s relevant experience and that the entire process meets legal and professional standards. How do you choose the right professionals? There’s no specific formula or checklist, but it’s vital to work with reputable experts who understand your needs as a buyer.
The next step involves choosing a commercial bank. It may be pertinent to consult an independent financial advisor or mortgage consultant. To those who will be purchasing from a distance, there is added value to have good representation in these fields. While it’s possible to negotiate your mortgage directly with the bank, preparatory conversations and financial advice can significantly help manage this potentially complex process. It’s also worthwhile to consider a certified property appraiser, who can provide valuable insights before you proceed. This will be a necessary part of the process for those who will need a mortgage to help purchase the property.
Taking out a mortgage also entails opening an account at a commercial bank in Israel, which will then handle all financial matters related to the mortgage moving forward. There are many and varied reasons to take out a mortgage aside from the obvious one, if you lack enough cash to purchase without financing. Other reasons will include being hesitant to invest all your capital in a property that isn’t your primary residence when you may have other business interests to invest in as well. Others may have a view on their home currency, and are not prepared to exchange at current rates the whole purchase price, preferring paying over a period of many years ahead, because they may believe that their currency is at weak levels. Of course this can go both ways, but is still a potential consideration. All these are worthy of serious discussion with your banker and advisers.
To sum up, buying a home in Israel is a structured yet complex process. As you work toward your dream home, it’s wise to surround yourself with professionals who can support you at each step and help you make informed decisions – whether about selecting the right property or structuring a mortgage suited to your future needs. Along the way, you’ll meet lawyers, appraisers, mortgage advisors, and brokers, so be sure to choose the most trustworthy and professional ones, just as you would when selecting the bank to work with.
Written in collaboration with Bank Mizrahi-Tefahot.
The above is for informational purposes only and does not constitute advice or an offer for a loan.