In the Realm of Investments There are no Rules – 3 Examples Illustrating One Simple Truth

You were told that the real estate bubble is far from bursting; that investing abroad yields very high returns, entailing a moderate investment – too moderate; and money should only be invested in a bank for peace of mind; and so on. So where does the truth lie? Would you like to invest in real estate and join the circle of people who enjoy good passive returns, but want to avoid making a false move? All over, you read different and contrary information about real estate investments and do not know what to believe?

We present below several examples that will prove to you that for every specific case, ad hoc investigation must be conducted, and don’t let the know-alls confuse you.

3 erroneous assertions

1. One should focus on the periphery and stay away from the center

You are advised to search for areas where demand is growing – areas that are relatively far out, but where there is a project that should boost demand there. True, there are recommendations to invest in Kiryat Shemona, Tiberias, Afullah, Kiryat Ata and similar. However, several deals of this kind ultimately proved far from yielding handsome returns. On the other hand, investing in the center of Israel proved to be a “gold mine”. Why? The reason is because these areas at the outset are geared to attract the well-to-do. Therefore, even if the initial price might be high, one would still profit from the added value, from high rental, and so on.

# Therefore, every real estate investment must be investigated in depth; don’t let bombastic headlines lead you into thinking otherwise.

2.Today it is hard to find financial opportunities

It is known that real estate prices are high; therefore, many do not recommend investing. Many are of the opinion that real estate investment is only for the very well-to-do. However, this is a generalization and often is inaccurate. There might be some truth in it, but it does not apply to every type of land and property investment.

# It follows that one must always see the entire picture. Thus, for example, alongside the rising price trend, these days one can also find tax benefits – the purchase tax rate has returned to 5%; there are benefits in the mortgage realm, with low interest; and various opportunities that COVID-19 has created. Therefore, undoubtedly, a window of opportunities is presenting itself today, which is worthwhile utilizing.

3. If investing in real estate, then at least invest outside Israel

A comparison has been drawn between investing in land or an asset in Israel versus investing overseas. This subject has always raised several questions.  However, there is a clear tendency to assert that real estate investment overseas yields higher returns than those in Israel. Is this always true? The answer is it depends largely on the type of investment concerned. There is no lack of examples of various investments in Israel that have yielded much higher profit. Moreover, investing in Israel includes a host of unique advantages. For example, investing locally facilitates communication, avoids feeling that you have acquired a pig in a poke [you can easily go yourself to see and check out the property], and one cannot ignore the fact that the value of real estate in Israel is constantly on an upward trend, and the market itself is considered stable.

# Don’t rush into making a decision before you have considered all the parameters making up the entire picture.

So, what is the bottom line?

We are trying to establish one simple truth. The real estate investment field could be the best thing for you and your family. However, there are people who like to come up with unfounded statements and throw up half-truths into the air. But as the world of investment has taught us, in order to finalize a successful deal, you cannot rely on what people tell you. You must always check the facts for yourself and surround yourself with experienced and reliable professionals. Thus, today too, investing in Israel, including in central Israel, could turn out to be a gold mine. If you find an interesting opportunity, go ahead, but approach it with care, conducting a comprehensive investigation of all the complementary aspects. Good luck!

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