They told you that the real estate boom is far from over, that investing abroad leads to very high profit percentages, that it is a moderate investment – too moderate, that you can only invest your money in a bank and really be calm, and so on. So what is the truth? Interested in investing in real estate and joining the circle of people who enjoy a nice passive income but don’t want to make the wrong move? Are you reading different information about real estate investments everywhere and no longer know what to believe?
We have collected several examples that will prove to you that every time a new inspection is required, without being confused by what “people who understand” say.
3 erroneous statements
1. Focusing on the margins, moving away from the center
They tell you to look for areas where there is a noticeable revival in terms of demand. Areas that are relatively on the margins, but where one plan or another is supposed to boost the level of demand? Well, it is true that there are quite a few recommendations to invest in Kiryat Shmona, Tiberias, Afula, Kiryat Ata, and so on. However, quite a few transactions of this type have turned out to be far from profitable. At the same time, investing in the center of the country has turned out to be a gold mine. Why? Because these are areas that were originally designed to attract a wealthy population, and therefore even if the initial price is considered high, you can still enjoy an increase in value, high rents, and so on.
# Therefore, any real estate investment should be examined in depth, without explosive headlines making you think one way or the other.
2. Today it is difficult to find economic opportunities
It is known that real estate prices are high, and therefore many do not recommend investing. For many, real estate investments are a field reserved only for very wealthy people. However, this is a general and inaccurate statement. There may be some truth to it, but it does not apply to every type of investment in land and property.
# From here, you always have to see the whole picture. For example, alongside the trend of rising prices, you can currently find benefits in the area of taxes – the purchase tax has returned to the index of 5%. You can also find benefits in the mortgage sector, low interest rates and a variety of opportunities that the Corona pandemic has created, so as of today, this is definitely a window of opportunity worth taking advantage of.
3. If you invest in real estate, then in non-Blue and White real estate
Comparison between investing in land or a Blue and White property versus investing overseas. This topic has always raised quite a few questions. However, there is certainly a clear trend that determines that real estate investments abroad lead to higher profits than those in Israel. Is this necessarily true? Well, it really depends on which investment you are talking about. There is no shortage of examples of a variety of local real estate investments that lead to much higher profits. Also, investing in Blue and White has a variety of unique advantages. For example, local investment makes communication easier, does not feel like buying a pig in a poke (you can easily come and see and inspect the property), and one should not ignore the fact that real estate prices in Israel are constantly rising and that the market itself is considered stable.
# Do not rush to decide before considering all the parameters that complete the picture.
What is the bottom line?
We would like to state one simple truth – real estate investments may be the best thing you have ever done for your family. However, people like to make statements and throw half-truths into the air, but as the investment field teaches us, in order to close a successful deal, you should not believe anyone. You should always check the facts yourself and surround yourself with experienced and reliable professionals. Hence, even today, investments in Israel and even investments in the center of the country may turn out to be a gold mine. If you just find an interesting opportunity, you should step up the gear, along with a comprehensive examination of all the complementary aspects. Good luck!