Thinking of investing in real estate assets overseas? • Yair Levy revealed the big secret behind the dream of a profitable income, not only in Israel • Chapter 06
The Israeli investment world has changed over the years wide and diverse, along with the overseas investment industry, which is increasingly enchanted by the global reality that technological advancement brings with it. In the sixth episode of ‘The Capitalist’ presented by Yair Levy, an expert in business real estate, about all the hidden secrets of the Israeli real estate world, he dispelled the The veil of fog surrounding the fields in which you can invest abroad, and told what you should know before jumping into the global bubble.
“There are three main reasons why people want to buy something abroad,” Petah said. In addition, there are investors who do not have enough money to invest in Israel, and those who have one of their children studying abroad, and they prefer to buy an apartment in the country where he is. Assuming that you are employed and all your income is based on salary only, you are not required to submit a personal report to the authorities. From the moment you spent money abroad, you will usually be contacted with a demand for a report, and you will have to inform the authorities how much you invested. Those who spend most of their lives here must know that the difference in exchange rates between the currency of the country where you invested abroad and the local currency is one of the most essential parameters.”
And what about the fact that sometimes we are located dozens of kilometers from the destination where we invested? “From the moment you bought a property abroad, your control over the property is completely different,” Levy claimed. “You have no control over what happens in terms of the tenant and your expenses, and you are obligated to have a management company or a local representative that provides service to the tenant. You must take into account that it will be difficult to know how much expenses you actually have on the apartment. If you are people for whom justice is very, very important to you, don’t go abroad.”
“Meet professionals, it saves a lot of money in the future”
“I know a number of Israeli entrepreneurs who behave unethically in these transactions. Gentlemen , do you have a language barrier? I don’t think you should rely solely on Israeli entrepreneurs, there are other options,” he emphasized. “There are good people in the industry who sell apartments or properties to Israelis and they are fair people, alongside professionals who behave in the opposite way. When you come abroad, don’t come with the head of Israeli real estate, that’s a completely different worldview. The way to do it right is first of all to organize Research your destination country, read articles and travel there. You feel the atmosphere, study the area where they want to sell you an apartment, check if there are young families in the area, and experience the area. You will meet professionals, talk to a local accountant, an appraiser, A lawyer, it saves a lot of money in the future.”
At the end of his remarks, Yair Levy, an expert in commercial real estate, said what are the rules that should be followed before taking the decisive step: “There are additional expenses that you do not know about at the moment, and for this reason you should apply in the first stage to local brokers. Interested in purchasing the property? Spend the money to inspect the property, so that you have confirmation that legally everything is in order. When you conduct transactions abroad, regardless of the size, in countries that give a mortgage, you will go through a bank, since the bank has glasses and you do not. It is important not to be tempted by promises of return or by blunt sellers who make you promises that they do not intend to keep.”
