The Israeli dream: investment in properties abroad

Have you come across an ad offering a tempting real estate deal abroad? Just before you buy an apartment in Berlin or Budapest, there are some important things to know. Yair Levy with important tips before taking the big step and buying an investment property abroad. The media are flooded with ads about the possibility of investing in real estate” abroad, and naturally as Israelis the thought of owning property in the world is a longed-for dream…. But before you run to realize it, let’s put things in order a little. The Israeli dream, investment in assets abroad Investment abroad can be done in one of two channels: independently, or through a company. Investing in real estate abroad through an external management company. Most of the ads are from companies that offer properties with tenants and a guaranteed return. This is a tempting offer because the company does everything for you, and guarantees a steady income over time. But this is exactly the problem, because the only way to guarantee a constant return over time is if it is embodied in the purchase price. There is no magic solution here, but an expensive deal that does not always reflect the economic potential inherent in it. Investing in real estate abroad on an independent track The second option is to purchase a property independently and take care of it alone – find tenants, collect rent and take care of any problems that arise. This solution is also problematic because it is very difficult to take care of the property by remote control. So you can always hire a local management company, and still, even then we won’t be able to know for sure what and how everything will be done. What is important to check before investing? In most countries of the world there is accessible information on real estate prices over the years. So before investing, and regardless of which channel, you must do your homework. Understand the price trends, the market structure and the local economy and all the factors that can affect the demand and supply of housing in the area. And perhaps the most important tip is: don’t invest in a place where you can’t read the local newspapers.