All our investors want to know what their rental income will be.
Some of our investors only have a small down payment that they can offer.
How can we help them?
This can be challenging, as the yield in Israel for a straight rental is a maximum of 4% and usually closer to 3.2% . In Jerusalem it can be even lower.
This is also challenging for someone hoping to use the rental income to pay off the mortgage as often, the rent may not cover their mortgage exactly.
So, what can we do to maximize rental income?
1. Airbnb
If you have the patience to wait a couple of years for this market to bounce back, in certain select areas of Jerusalem and Tel - Aviv , you can increase the net rental yield to 6.5% with Airbnb rentals.
2. Conversions
It is possible to purchase a large apartment and convert it into smaller units. In this case the sum is larger than the whole, as smaller apartments claim a relatively higher yield to larger apartments. In addition, it is also often possible to convert a machsan (storage unit) and even closed parking spaces into offices and shops. You should note, that while this is very common and many municipalities turn a blind eye to this practice, it is often hard to get legal permits for this. These type of rentals can bring a yield of 6%.
3. Yeshiva rentals
In certain very select neighborhoods of Jerusalem, it is possible to rent beds to yeshiva students. The rental of each bed, including bunk beds, can bring in a rental income in excess of 8%. Covid 19 has shrunk this market, nevertheless, it is still strong and the yields remain high.
Unfortunately, all these investments sill require a very large down payment.
What if you only have a small sum to invest?
It may seem small based on the Israel market prices, but it is still significant, and should still be used to your maximum advantage.
Innovation is a key word in the world we live in, and we have some outstanding options that are quite out the box, but that are growing in popularity by the day.
This, however, means working with some of our partners OUTSIDE of Israel.
We are Israel properties and we want people to buy, live and invest here.
But let’s face it. Israel is a challenging place to make a living and you need a significant deposit to increase your income by a modest amount. You also have to start somewhere!
The amount required to invest abroad is significantly lower and the returns can be higher. So, it is something to consider.
4. Greece
For an investment as low 70,000 Eus (280,000 NIS, $83,000, £63,000) you can
purchase an apartment that will give you a 4% yield.
5. Cyprus
For a minimum investment of 88,000 Eus (350,000 NIS, $105,000, £79,000), you can get a present day 4% yield and 6-8% yield in the post Covid era.
6. Dubai
Yes you read that right. Dubai is open for business, is built for business and we have already established a partnership there. They are professional, friendly and keen to do business with us.
For an investment as low as $140,000 (475,000 NIS, £105,000) you can purchase an apartment that will bring you a 10% + NET yield – including no taxes!!
We also have partnerships with the UK, USA and South Africa. So, if you are interested in
diversifying your portfolio, we would be very happy to advise you.
Simply contact us today and we can advise you in every step of the way.