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Despite the outbreak of COVID-19 – and some would say because of it – real estate investing is still a thriving field. People have come to realize that if you are looking for good returns and solid ground, nothing compares to the niche of real estate investment. However, as always, you have to know where to carry out real estate investments. There are cities where the investment is known to be preferable and safe, and on the other hand, there cities where the investment is known to be riskier.
Hence, if you want to dedicate a few hundred thousand shekels for a promising real estate investment, you must know which cities are considered the hottest. Curious? With good reason!
The legislation that affected real estate investments
Just before we proceed to the top six cities, we will explain an important fact. In July 2020, something happened that many in the investment world had been waiting for: the drop in the purchase tax for a second apartment (the same tax that since 2015 had stood at 8%). From now on (until further notice), the purchase tax for a second apartment stands at 5%. Hence, COVID-19 cannot be blamed for everything, and this positive point may even be attributed to it. Without the economic plan that was advanced due to COVID-19, the real estate sector would not have returned to making big profit again. This move, which sought to bring investors back to the market did a good job. All that’s left to do now is to understand where to invest when buying a second apartment.
Bat Yam
With Tel Aviv filled to the brim with new construction and prices that are incredibly high, you can only profit from the nearby city which also offers a direct view of the sea. In Bat Yam there is no shortage of homes with land that are in proximity to the “big city,” Tel Aviv, as well as to public transportation, and that is a winning combinations. Additionally, note plans relating to urban renewal and the intention to establish a metro station in Bat Yam.
Investment in Kiryat Motzkin
This city, located in the Haifa district, offers plenty of real estate options. One of them focuses on the old Motzkin neighborhood. This neighborhood offers detached houses, is adjacent to the train station, offers commercial centers and includes plenty of green spaces, parks and nature. It should be noted that most construction in the neighborhood is old, so the “jackpot” lies in those apartments that will participate in urban renewal plans.
Investment in Haifa
Haifa, which is the capital of the north of Israel, includes a variety of neighborhoods that present a problem alongside a very tempting solution. On the one hand, a variety of detached houses are located on the sea – a dreamy and prestigious location. On the other hand, those houses are usually in neglected condition and are adjacent to refineries. Where is the economic hope? There is no shortage of promises that the refineries will be evacuated. If that happens and an urban renewal program enters the equation, you can certainly expect an amazing return.
Investment in Be’er Sheva
From the northern capital we will move to the capital of the Negev and the south. Be’er Sheva has always offered tempting real estate deals. Although these are small and untidy apartments, they are also apartments near Ben Gurion University, so there is no shortage of demand. Want to leverage this? Focus on proximity to the university.
Investment in Tel Aviv
Tel Aviv has always been and probably always will be a huge potential for all types of real estate investments. However, it is important to consider what and where. For example, an investment in the Neve Ofer neighborhood was once considered a puzzling investment, but today it is very attractive. This is a neglected neighborhood that has recently attracted young families with a good socio-economic status. Moreover, anyone interested in reviewing through the plans will find that Abu Kabir is about to be vacated, and there are construction evacuation plans on the table. What more? A significant bike path and more is about to be built, so this is definitely a hot opportunity.
Investing in Kiryat Shmona
If we focus on the Jordan neighborhood, which is close to a variety of main roads, we find an area offering a variety of detached houses surrounded by green landscapes and impressive mountains, along with immediate proximity to a variety of sought-after hiking destinations. This is an urban neighborhood that offers a rural atmosphere in the heart of a bustling city. However, the main minus is that this city is not located nearly central Israel.
Real Estate Investments -Getting things straight!
The most important thing is to focus on apartments whose prices are low relative to the city you are focusing on, and of course it is also important to take local demand into account. Further, when dealing with real estate investments, it is important to avoid temptation to buy a very inexpensive apartment that is difficult to sell or rent. Why? The aim is to find a winning combination: an apartment that offers a low price, in an environment where demand is considered high, and future growth plans should always be considered.