Lands for Sale in Israel: Why is Land a More Secure Investment than Residential Properties?
In Israel, the availability of lands for sale is quite limited. About 93% of the country’s land is owned by the government and controlled by the Israeli government, leaving only about 7% private ownership. Due to the high demand and limited availability, land investment carries a relatively low risk. Additionally, the country faces a housing crisis, with demand continuing to grow due to population growth while the supply remains limited. So why not buy an apartment if the demand is growing? Well, the real estate prices in the country are skyrocketing and becoming unaffordable for many. On the other hand, when considering purchasing land for sale, you can find land at price ranges that are more comfortable and profitable. Land tends to appreciate in value over time. In contrast, when purchasing an apartment, you have to pay the full price, deal with interest (if you took a mortgage), and most importantly, face the fact that the value of the apartment has a clear glass ceiling. This makes it definitively less profitable in the long run compared to land.
What are the advantages of purchasing lands for sale in Israel?
Investment Yield and Economic Stability– Buying land for investment offers very high potential returns, huge demand, and steady appreciation. Moreover, after the land is thawed and at the end of the housing development plan, the investor can enjoy renting the properties, owning an apartment, or selling the plot at profits of hundreds of percent.
Low-Risk Investment Channel– Unlike investing in land which is a solid and yielding investment and neutralizes our dependence on external factors, investment in stocks depends on market fluctuations which are not under our control. This is also the case for the real estate market in the country and abroad, which requires us to invest capital and puts us in a state of dependency against tenants, property maintenance, and value preservation, various tax laws, management companies, and so forth. For this very reason, many real estate investors have started to move towards investing in lands.
Population Growth– As we noted, the population in Israel is growing, life expectancy is increasing, and the demand for housing and commercial properties only continues to grow. Therefore, due to the demand and the housing shortage, the government encourages the thawing of lands and greatly facilitates the thawing process.
Private Ownership– Private ownership always has an advantage, especially when it comes to a “sought-after product.” It is important to remember that there are not many privately owned lands in the country (only 7%) and therefore, besides the demand (which we continue to mention!), owning private land gives us full control and removes the dependency or the fear of eviction following a sale, or decisions made by others about the property.
Appreciation of Your Money– By keeping money in the bank, its value diminishes over time. On the other hand, investing in land can result in increasing value, allowing you to generate a significant profit when you decide to sell. This can provide a better opportunity to purchase property in the future.
Why is it crucial to have a land marketing company involved in the land purchase process?
Well, the process of purchasing lands requires experience and familiarity with the field both in terms of finding the most profitable lands for investment, but also in terms of understanding the bureaucratic and legal process. Moreover, there are numerous professional terms to understand, along with several challenging stages in the process of purchasing land that require expert assistance. Here are the stages:
Selecting land for investment: The land you choose greatly impacts the success of your investment. It is crucial to thoroughly understand the essential data for making an informed investment decision, including current trends, prices, future land appreciation, potential return, etc. To accomplish this, a land marketing company can offer professional advice and assistance based on their experience and expertise.
Investment Goals and Expectations: It’s important to work with a reputable land marketing company that can identify lands meeting your goals and needs, including type and location in Israel. Look for a company with a selection of lands already in development.
Standard 22: Provides detailed information about the land, its boundaries, and any potential limitations, such as the thawing plan and its promised implementation by the seller.
Purchase Agreement: The purchase agreement is a legal document that outlines the terms of the sale, including the purchase price and payment schedule. It’s essential to have professionals review it to ensure it’s fair, accurate, and legally protective.
Transfer of Ownership: The transfer of ownership is the final and crucial stage of the transaction, involving a legal process for recording the transfer at the Land Registration Office under the Israel Land Authority. The process includes a legal agreement, and its signature has a significant effect on both the present and the future.
Please keep in mind that when dealing with legal contracts, there is no room for unprofessionalism or misunderstanding. Such arguments will not be helpful in court.
Changes in Land Designation Plan: Investors often worry about land designation changes and road construction on their properties. A reputable land marketing company, backed by a leading real estate law firm, can ensure that the designated land aligns with the intended construction plan. In the event of future road construction, you will receive building rights on the adjacent land.
Thinking about investing in land? Let Sadot Group guide you to a successful investment
Sadot Group is a leading real estate company specializing in low-risk investment opportunities and purchasing lands with high appreciation potential in Israel and worldwide. Their team of experts provides personal attention and adheres to a transparent and professional process. If you’re in search of a secure and profitable real estate investment, Sadot Group is ready.
Interested in learning more? The Sadot Group offers a free consultation call to thoroughly discuss your investment options.s
