Let’s analyze the various options open today for investors.
If one compares investments in the United States to the average real estate opportunity in Israel, one discovers that in central Israel one can achieve returns of just 3%, while away from the country’s center, in the periphery, one’s returns reach 4% at best. Furthermore, it appears that for the near future, the big jump in real estate values has already happened.
Investing in the Israel Stock Exchange at present is extremely speculative and depositing one’s money in the bank provides a laughable 2-3% interest rate, if you are lucky.
Investing in Israeli real estate carries a purchase tax of 5-6% which is paid by the buyer, and an additional tax is levied on monthly rental income over 5000 shekels. This does not even take into account real estate agents’ fees, lawyers’ fees and other taxes.
The returns in the United States are significantly higher, and the capital needed is considerably lower! One can profit from a positive cash flow in comparison to investment alternatives in Israel without having to worry about day-to-day management problems.
Watch your money make money!
