There is only one Jerusalem. Everybody knows that and that’s why everybody wants a piece of it. This city is so unique, literally one of a kind that, which makes its real estate market an investing study case for the ultimate real estate question – should I buy or rent?
It seems Israel’s Real estate market has always been on the rise. Although the country is suffering from a constant geopolitical crisis and inner politics threaten to divide the population into two groups – one thing has always remained constant – your property value will rise – Especially in Jerusalem.
For the past 20 years the number of properties owned by foreigners in Israel has constantly risen. Jewish families from all over the diaspora have considered Israel their second home and opted to purchase property which will either be available for them in their next trip to the holyland (Vacation houses) or as an investment. In the past year several laws have been passed which make it more difficult for residents outside of Israel to purchase houses in the country’s booming real estate market. This is due to a serious shortage in housing possibility for Israeli citizens. Many Israelis blame foreigner investors for the high rise in housing prices and buying homes in coveted area and leaving them empty yearlong for it to be available during high holidays or summer.
New restrictions on buying houses for vacation rentals include a higher tax fee law which was also implemented in the past few years. All these rules and regulations are signs that the Israeli public and governing bodies prefer to keep the Israel real estate market sane and safe for Israeli citizens.
So how can you still enjoy Jerusalem without owning property in it? Some prefer to visit the city and inhabit one of its fine hotels. Though the standard of Israeli hotels is very high – the prices are as just as high and the feeling is of a tourist passing buy. The other option is to rent an apartment for your vacation’s stay and enjoy the city as if you were a true Jerusalem resident. In the current situation, unless you are truly blessed with a fortune and have no problem with additional taxes and fees – this might be the best solution for keeping in touch with this sacred city and not feeling like an outsider.