Make Owning Part of Israel A Reality.

Of course you can, and many do! Keep in mind there are different tax brackets for foreigners, but nonetheless it is definitely possible. In addition, Israeli banks offer mortgage options for foreigners as well.

Short answer - No, your money is insured by the bank right up until project completion. In addition, developers are obligated to follow stringent laws protecting the consumer with regards to building code, delivery time, and project quality/finishes. In the last two years especially, more than half of my clients have bought from developers. Long answer - Years ago it was more risky to purchase on plan, as many developers and contractors could operate without a bank guarantee. What this meant is every shekel you paid towards the project would go directly to the developer. This opened up the risk that if the project potentially ran into financial troubles, the developer could file for bankruptcy and you "the buyer" may never see that money again, pending a long legal process. Today, in accordance to the updated "Sales Law" from 2008, every payment made towards a project on plan is actually paid to the bank that is backing the project and funding the loan. In turn, you "the buyer" receive a bank voucher that is paid to the developer instead, with your money secured by the bank. If in the event the developer cannot complete the project for whatever reason, by law your money is to be returned to you. Depending on what stage of construction the building is, it is common that banks will first try find a reputable developer to come in and complete construction, as it is in everyone's interest to deliver the project. As with every industry, there are great developers who have built a strong reputation for themselves over the years, and there are less reputable ones. Over the years, I have come to know the good ones, and I make it one of my main focuses to vet every developer I decide to work with to ensure my clients are getting quality product from someone they can trust.

Yes, and I have done numerous deals this way. Your lawyer who will be representing you in the purchase will need to receive Power of Attorney with your consent. From there, the entire process can be completed without needing to be present in Israel.

There are several fees that are in addition to the purchase price that need be taken into account: 1) Purchase Tax- If you are buying as a foreigner, its a flat rate of 8%. If you have Israeli citizenship or a returning resident the tax rate is lower and teared. If you are a new immigrant "Oleh", there is also a lowered special tax rate. 2) Realtor Fees- In Israel, commission standard rate is 2% + VAT, paid by the buyer and/or seller depending on the representation. 3) Lawyer Fees- Whether buying or selling, lawyers are the ones who legally execute the contracts and their rate ranges between 0.5% - 1.5% + VAT. 4) Developer Legal Fee- When buying from a developer, there is usually a legal fee that is paid by the buyer. This amount varies depending on the developer and size of deal, but typically it ranges between 5000 NIS - 1.5% + VAT.

No, it is not mandatory in Israel to buy real estate through a realtor. However, keep in mind you are taking a big risk. Any realtor worth their salt has built up a reputation of delivering high end service with integrity, and has the results to prove it. Furthermore, a quality realtor knows the market like the back of their hand and that includes property/owner history, previous offers, and other nuances that a buyer without representation would not be aware of. I can confidently say that the money and grief a great realtor will save you on a potential purchase will be far outweigh the savings on commission that one may see as a potential incentive to buying without a realtor.