How to buy an apartment in Israel

For the most of us buying an apartment is one of the biggest financial steps we will ever make. Buying an apartment in Israel seems to be more complicated especially if you are not familiar with the Hebrew language, Israel's geography and the mentality of Israelis.
 
This Guide reviews the major issues you should relate to when starting the process of buying a property in Tel Aviv, Jerusalem, Herzliya or any other city in Israel.
 
Hiring professionals in Israel
 
When you're trying to buy real estate in a foreign country it is always recommended to consider hiring local experts. Two experts that can help you make the right decisions when buying an apartment in Israel are a real estate broker and an attorney.
 
Finding the Israeli real estate broker and the Israeli lawyer that will meet your needs is not an easy task. One of the best ways is to ask friends for there recommendations.
 
The cost of hiring a real estate broker in Israel in case of a real estate purchase is 2% plus VAT (Value Added Tax) of the apartment's price. Both the seller and the buyer pay the commissions. (Each one pays his own real estate broker. In some cases both of you are represented by the same real estate broker).
 
It is important to hire a real estate broker working in the city where you want to buy. A real estate broker from Haifa can't help much if you are looking for Apartments for sale in Jerusalem.
 
The cost of hiring an attorney in Israel in such a transaction is 1% plus VAT.
 
Apartment Sizes and real estate terms in Israel
 
Home sizes and terms used in the real estate market in Israel may confuse you. Let us try to go over them and explain.
 
Number of rooms - The number of rooms stated in an ad counts the number of bedrooms and the living room. For example, a 5 room apartment in Israel usually means 4 bedrooms and one living room.
 
Apartment size - The size of a home in Israel is measured using square meters (sq. meters). One square meter = 10.7639 square feet.
 
Plot of land - The size of a plot of land in Israel is measured using dunams. One dunam = 1000 square meters = 10,763.910 square feet = about 0.25 acre.
 
Penthouse - A penthouse is an apartment located in the upper level of the building.
 
Cottage - A multilevel property with a private entrance and a garden that is attached to another cottage.
 
Villa - A private house.
 
Nadlan - The word nadlan means real estate in Hebrew.
 
Property Prices in Israel
 
The price of new homes and apartments in Israel is stated in New Israeli Shekels (NIS) by law. Until recently the price of most of the second hand properties was stated in US dollars. The dollar's weakness caused an interesting shift and now the price of most of the second hand properties in Israel is stated in shekels as well.
 
Unregistered Space
 
Some properties in Israel have unregistered space. The fact that a part of the property is not registered should lower the price of the apartment. You should always bare in mind this is illegal and you might loose this space in the future since it's not really yours to begin with.
 
Mortgages in Israel
 
Buying a house in Israel with the help of a mortgage is very common. Most Israelis use mortgages and some of the foreigners use them as well. You can get a mortgage of up to 80% of a property's value. You should contact the banks in Israel and compare the terms you are offered.
 
How to look for an apartment in Israel
 
When you live outside of Israel one of the best places to start looking for a house in Israel is the web. You can find Israeli real estate websites in English (such as this one) and contact the owners and real estate brokers using online forms.
 
On MyNadlan you can find properties for sale or rent posted by the owner or by real estate brokers.