Renting in israel | Imamother

amother

Thu, Aug 13 2020, 6:21 am

Anyone who made Aliyah is still living in a rented apartment?
I’d love to buy an apartment in Israel one day, but we never owned an apartment (we’re still in NY, making Aliyah next summer). I can’t imagine us buying anything anytime soon so I’m looking at long term rentals. Will I just be wasting money for years and years on rent? Are Israeli mostly buying apartments? What’s your experience with rent in Israel (any advice appreciated) thanks!

banana123

Thu, Aug 13 2020, 6:31 am

First of all it doesn't matter what "most people" are doing. What matters is what you can afford to do.

Second, don't buy before you know where you want to live.

Third, rent is not wasted money. When you pay rent they do all the fixes. When you buy, if something happens then you need to pay for that fix AND pay that month's mortgage.

amother

Cerise

Thu, Aug 13 2020, 6:36 am

Most Israelis I know (aged mid 20s to early 40s, torani, many BTs, living in the merkaz) do not own their apartments and a few never will. We BH bought and are glad we did because it turned out to be a good investment. If you can afford it, and know which area suits you (most olim don't have a clue) it's better to buy but I see no reason not to rent for a few years beforehand. Be careful which landlord you choose, though. We've had some gems...

FranticFrummie

Thu, Aug 13 2020, 6:36 am

banana123 wrote:

All of THIS. I've owned several homes in the US, and most were headaches at some time or another.

I've been renting for 5 years in Israel, and I have no regrets. My landlord is really awesome.

If you're looking for a 2 bedroom in a quiet neighborhood, let me know. The upstairs unit is available, and it is GORGEOUS. Fabulous views, and under 3,000 shekels, too.

essie14

Thu, Aug 13 2020, 6:36 am

If you are buying in a popular area and you have the money for a down payment now, you can buy on paper before you make aliyah and hopefully the apartment will be ready around the time you move. If you don't like the area, you can sell and move somewhere else.

But as banana123 said, you have to do what you can afford.
We rented for many years before we bought. We have friends and neighbors who bought on paper before aliyah, but also many who rented for 1-15 years before buying.
Some people rent their entire lives.

amother

Wine

Thu, Aug 13 2020, 8:15 am

amother [ OP ] wrote:

Just so you know, there are very very few long term rentals in Israel. Most landlords are willing to sign for a year, with the option of another year. That's it.

Many people who rent find themselves moving every two years. Yes some people luck out and rent the same place for 10 or 20 years, but they are by far the exception. There is no long term rental culture here.

Most Israelis own their own home (over 65%, see statistic below) and although that's lower than the 70% it was in previous years, it still means that the market is geared more toward home-owners than renters.

66.5% בלבד ממשקי הבית בישראל גרים כיום בבעלות - צניחה של 3.7 נקודות אחוז בשיעור הגרים בבעלות לעומת שנת 1997 אז גרו 70.2% ממשקי הבית בדירות בבעלות

amother

Wine

Thu, Aug 13 2020, 8:20 am

banana123 wrote:

You can always buy as an investment. However, that also needs to be done wisely. You need to buy in a place with demand for rentals, and you need to live closely enough to take care of things once in a while. (That can be an hour or two drive away, if you are willing to hire out handymen for most things)

banana123

Thu, Aug 13 2020, 8:32 am

amother [ Wine ] wrote:

That's true. But remember that buying as an investment means risking paying the mashkanta, vaad bayit, and arnona for months on end while the apartment sits empty and you still have to pay your own rent.

amother

Wine

Thu, Aug 13 2020, 8:50 am

banana123 wrote:

Yes. You need to make sure you can swing 6 months if it's not rented.

Teomima

Thu, Aug 13 2020, 8:58 am

I'm going to mostly echo what others have said: you need to do what you can afford, and you definitely shouldn't buy until you know where you want to live. Buying a home is a huge headache in Israel (anywhere, really) and you'd be better off in the long run if you're lucky enough to get it right the first time.

One thing I'll add is to keep in mind that currently across the country there are plans for pinui binui, which means old buildings are going to be torn down and replaced with larger complexes that include a combination of residential, commercial, communal and educational facilities. That means down the line they're will be hundreds of units available at a time, hopefully reasonably priced, too. It's a big picture, long term plan, but it's something to keep in mind (both if you might consider a new unit or if you consider an older one that might possibly be rebuilt).

amother

Wine

Thu, Aug 13 2020, 9:30 am

Teomima wrote:

Pinui binui is not a simple thing. Lots of buildings have been waiting for YEARS for pinui binui. Even when a building contractor shows interest in signing a contract with the owners of an old building that is eligible, even then it can take years.

Buying an apartment that is slated for pinui binui is something investors often do. It's less common for someone who wants to actually live there.

Teomima

Thu, Aug 13 2020, 9:37 am

amother [ Wine ] wrote:

Oh trust me I know! We've been in negotiations for 12 years! We even signed a contract and were months away from construction for Tama 38 before they cancelled all Tama plans in our area. Then years ago we restarted from scratch with pinui binui. Such a headache.

I don't suggest specifically buying a place based on future pinui binui plans, it's just something to keep in mind if it's a potential possibility if you do buy an older apartment. And if you hope to buy new in a pinui binui complex, you should assume that's about ten years away or so, more depending on the project. Just to give you an idea of what option might be should you choose to rent long term.

amother

Sun, Aug 16 2020, 8:36 am

Thank you for the suggestions. For sure we will need to find a rented apartment. We’ve never moved in NY, so I hope we can find a nice landlord who would be renting it out for us more than 2 years because moving anywhere is expensive and I really don’t want to move a lot (if we like the neighborhood). My parents moved a lot and growing up, I remember I liked having a new room but at the same time, I disliked moving to different schools all the time. I want to settle down somewhere and not move a lot, but we can’t afford to buy. I hope we can buy one day, but can’t see it in the next two years.