We all dream of financial security. We want it for ourselves, for our children, and even for our future grandchildren. However, while we dream, we are not taking action, and thus, the desire remains a mere fantasy. Isn’t it time to start taking action? So, let us introduce you to the most profitable investment channel in Israel: fields for investment.
Let us tell you a nice parable for life. Yossi wanted to win the lottery, and in every draw, he looked to the skies and said, “God, please let me win the lottery.” This is how Yossi continued in every draw for twenty years. One day, just after Yossi again asked God to let him win, an angel turned to God and said, “My lord, why don’t you help Yossi?” And the Lord replied, “I would be happy to help, but he never bought a lottery ticket”. What’s the moral of the story? If you want something, it’s wise to stop dreaming and start doing. Still, many Israeli residents continue to dream of owning an apartment and complain about high prices, instead of exploring alternative ways to achieve their goal.
Well, we are here to put an end to that and introduce you to the excellent alternative to buying an apartment: investing in land for development. Let’s get started.
What are the investment opportunities in the land market in Israel?
The term “Fields for Investment” refers to land available for purchase in Israel for housing and development. However, the majority of land in the country is owned by the Israeli government and is only available for lease, not for sale. This means that only about 7% of the remaining lands in Israel are privately owned and available for purchase. Additionally, when it comes to agricultural lands, a request must be submitted to change their designation for building, a process called “land reclassification”.
Why is the process of land reclassification being crucial for investment?
For the simple reason that reclassification of land increases its value by hundreds of percent, which is actually one of the main reasons why many real estate investors prefer this investment channel over any other.
What is the process for land reclassification?
The process of land reclassification involves converting agricultural land to residential land through a detailed master plan submitted to the local planning committee. The plan is reviewed and approved by various committees and certified professionals, with potential amendments and public announcement before final approval by the Minister of Interior.
Why are investment areas that have not yet been reclassified still an excellent investment?
When it comes to land, whether it’s agricultural or an investment area undergoing reclassification, the value of the land continues to increase every year. Therefore, even if you invest in an area at the beginning of the process, you can be confident that the plot’s price will keep rising year after year. This means that if you decide to sell it at any stage, you can do so at a profitable price.
The Advantages of Investment in fields in Israel
High demand from the supply: The demand for land in Israel is extremely high, especially now due to a severe housing crisis and continuous population growth. There is an urgent need for additional residential areas to be built. The high demand also means that if you want to sell land, you can do so quickly and at a significant profit, as land continues to increase in value. It’s important to note that land in the country is a limited resource and cannot be “produced” or purchased outside of Israel, as we are a country with territorial continuity.
Price ranges for every investor: The land market offers a wide range of prices based on geographic location, area size, and type of land. Prices do not reflect the quality of the land, but factors like reclassifying process and time for construction impact the cost.
Ownership of a new property: Patience pays off in the real estate market. After the construction is completed, investors will have the option to live in the new apartment, rent it out for high returns, or sell it for a substantial profit. Although this process takes time, it’s a solid and relatively low-risk investment opportunity, especially in Israel where the average apartment price is around 2 million shekels.
Increasing the value of your money significantly: Keeping your money in a bank account means its value decreases over time. This is because the bank doesn’t generate returns on your money. In contrast, investing in land preserves and increases the value of your funds. When you decide to sell, you can realize a substantial return and significant profit.
What is essential to ensure before closing a land purchase deal, and why use a professional land marketing company?
Not every piece of land is a good investment, and it can be difficult to determine on your own which land to invest in, especially if you are not familiar with the field. Therefore, it’s helpful to work with a land marketing company and professional marketers who can provide you with a selection of carefully chosen lands that suit your needs and investment goals. In Israel, there is a national master plan for planning and developing new settlements over a period of about 15 years. Before investing in land, it’s important to check whether the Tama 35 plans conflict with your construction plans. It’s also crucial to request Standard 22, which provides a detailed report of all the land data, such as boundaries and limitations, and to examine whether your construction plans for the land can actually be implemented.
Furthermore, the process of purchasing land involves a lot of legal bureaucracy and professional language that only experienced land marketers are familiar with. It’s critical to have certified individuals from the field accompanying you, providing advice, direction, and assistance to ensure a successful investment. It’s worth noting that for leading land marketing companies, legal accompaniment by law firms is part of the company’s service.
Are you interested in Fields for Investment? Sadot Group would be happy to accompany you and provide you with professional consulting
Sadot Group is a leading real estate company specializing in identifying investment opportunities with minimal risk, purchasing lands with immense potential for appreciation in Israel and worldwide. Their team of experts provides personal guidance and adheres to the highest standards of transparency and professionalism. If you’re in search of a secure and profitable real estate investment, Sadot Group is ready to assist you.
Interested in fields for investments? The Sadot Group offers a free consultation call to thoroughly discuss your investment options.
