Buying an Apartment on a Tight Budget
House prices in Israel have been increasing quite rapidly the last few years. This article explains why Israeli analysts believe this trend will continue in 2021.
So the question is, how can someone with a tight budget buy an apartment and make a good return for it.
House prices are very high in central Israel and Jerusalem, but prices are quite reasonable in the periphery in both the north and the south of the country.
We've partnered up with another company that works in cities in the periphery, such as Beer Sheva and Eilat in the south and Kiryat Shmoneh in the north.
They find cheap properties for clients, some in states of disrepair, they buy them for them, refurbish them and in the process, split the apartments into smaller units. They then rent them out on behalf of the clients, and the client sees his return each month.
A cheap apartment being renovated and split
The splitting of the apartment is done without a permit, but this is extremely common and risk-minimal.
Returns on such apartments are between 5 to 8%. It depends on how big an apartment you buy in the first place, and therefore, how many apartments it can be split into.
The finished product
Apartments begin from around 600,000 NIS and refurbishing costs around 160,000 NIS.
We also have already completed apartments that have been split ready for purchase.
If this is something that interests you, contact us today.