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Renting property in Israel can be an exciting experience, whether you are a local resident or an international newcomer. With its diverse neighborhoods, vibrant cities, and rich cultural heritage, Israel offers a wide range of rental options to suit various preferences and budgets.

However, navigating the rental market and understanding the necessary steps can sometimes feel overwhelming. In this article, we will provide you with a comprehensive guide to renting property in Israel, covering everything from preparing for your search to signing a lease agreement. This article aims to equip you with the knowledge and insights needed to make informed decisions and secure your ideal rental home in the dynamic Israeli real estate market.

Let's start with some major differences.

You’ve made up your mind: You’re making Aliyah! Do you look for a home to buy before you arrive, or after? You may have purchased property before and dealt with banks and mortgages, or maybe this is the first time delving into real estate. Either way, you’re up for a completely different experience from your home country. What might be standard practice in the US before selling your house - painting, new carpet, remodeling the kitchen, for example - is something most Israelis find strange to do. This brings us to this guide’s first section.

Acquiring a mortgage (mashkanta) can significantly enhance your ability to purchase a desirable property in Israel. For individuals who have previously obtained a mortgage in their country of origin and have successfully paid it off, navigating the process in Israel may seem unfamiliar. This comprehensive guide aims to provide you with the necessary insights and understanding to make informed decisions about your mortgage options in Israel.
Regardless of your residency status, whether you are a resident, foreigner, or in the process of Aliyah, you can apply for a mortgage in Israel. However, it is important to note that the rates and borrowing amounts may vary depending on your circumstances. Let's delve into the details.

The Israeli government has updated the tax rates for purchasing real estate for the year 2023. The new tax rates will be effective from January 16th, 2023, until January 15th, 2024. When purchasing property in Israel, the buyer is required to make a one-time payment for the purchase tax. The amount of tax depends on the property's value.

The new tax rates apply to both the exemption for a single apartment and for apartments purchased for investment purposes. However, commercial and other non-residential properties, including land plots, are not subject to updated tax rates. The tax rate remains fixed at 6%.

As you are likely aware, real estate prices in Israel tend to be on the higher side. The continuous upward trend raises the question of whether it is advisable to purchase a property in cash or consider taking on a mortgage to expand your budget.

For non-Israeli residents, it's worth noting that they can apply for a mortgage in Israel and secure up to 50% of the property's value, effectively doubling their initial budget. However, the question remains: is it the best course of action? Let's delve into this topic.

Whether you have a specific interest in Israeli real estate or not, residing in the country or planning to do so means encountering various terms related to the local real estate industry. These terms can play a crucial role in facilitating effective communication and understanding between you and different real estate professionals.

At Sabras, we are dedicated to assisting you by providing clear definitions and ensuring the correct pronunciation of some of the most frequently used terms in the Israeli real estate market. Our goal is to enhance your overall understanding of the industry and help you navigate the real estate landscape with confidence.

Renovations, or "shipputzim" as it is known in Hebrew, are a common occurrence in Israel. Whether it's a supermarket, post office, dentist's clinic, or your neighbor's house, someone is always going through a shipputz. Israelis have a penchant for staying up to date with the latest design trends from Europe and the USA. However, navigating the world of renovations can be overwhelming. It involves its own jargon, culture, logistics, and more. But fear not! Here's some information that can help you navigate the process and minimize stress.

In accordance with the Tenant Housing Services Index, the purchase tax brackets in Israel were recently updated on January 16th. As per the law, these brackets undergo annual updates, typically taking effect in the middle of January.

The revised tax brackets apply to both the exemption for single residential apartments and investment properties. However, it's important to note that these brackets do not apply to commercial and agricultural properties and lots, as the tax rate for such properties remains fixed at 6%.

In the aftermath of the Covid-19 pandemic, the Israeli real estate market experienced a temporary slowdown. With uncertainty gripping the nation, many individuals hesitated to buy or sell properties. However, this phase was short-lived, as the real estate bubble regained its strength and began expanding once again. According to the Central Bureau of Statistics, housing prices in Israel skyrocketed by an average of 10% within just one year.