“If I would have waited another ten years I could have sold it for 30% more.”
“I should have sold it last year. Now it’s a lot harder to find buyers.”
“Why didn’t I buy while the prices were still low?”
Many real estate investors travel a path littered with regrets. In a market that is constantly changing, “could’ve- would’ve-should’ve” s happen to everyone. As a pattern, however, you’ll want to avoid them.
Almost every investor comes ready with the formula for success: buy low and sell high. What makes things complicated is the fact that there is no foolproof way to accurately predict the market. No prophecy, no crystal ball, and no magic wand. Sorry.
One thing that is predictable is that change will come.Think of it as the tilt-a-whirl at your kids’ favorite amusement park. The real estate market moves in circles. What you can’t know is how big the circle is, if its round or oval, and how long the “down” will last before the next “up”.
That’s why it’s important to be equipped with all the data that is within reach. An informed investor makes smarter real estate choices.
How do you know what you need to know? Easy. Start by determining what kind of investor you are.
- Are you a short term investor looking to buy, renovate and sell, all within a short time span?
- You should know: the micro-details. Anticipate that the market may drop, and plan your project in a way that you would still make a profit on the resale. Factor this risk into the equation before buying that “steal of a deal” for your next flip project.
- Are you a long term investor buying real estate with the intention to keep it for good, or sell it after a long time (5+ years)?
You should know: The macro details. Don’t be overly concerned about when in the cycle you invest. Instead, focus on the larger picture of maximizing the profit on your investment.
At the Getter Group, we tend to focus on long term investments, since Israel’s market does not lend itself well to the flip industry.
Long term investors never need to feel like they’re taking a roll of the dice. Instead, you can use very specific criteria to help you identify sound investment opportunities. It’s about research, not guesswork.
So what’s the secret sauce?
How to make a Smart Real Estate Investment
- Choose Jerusalem (or Central Israel)
- 90% of apartment owners in Israel own only one apartment, which means that the vast majority of buyers are one-time buyers, not speculators. This gives investors a solid and steady market to work with.
- Jerusalem is not just any city. It is “the city whose glory is unlike any other”. In other words, Jews are passionate people who want to live in Jerusalem, a selling point that is never going away.
2. Choose Residential
Our market research indicates that there is a big apartment shortage in central areas of Israel. In addition, having a home and a roof over your head will never go out of style, which gives the residential market more stability than the commercial one. Even if the market declines and buyers are sparse, you can easily turn your investment into a rental while waiting for buyer demand to increase.
Pro tip: Always stress-test your investment before deciding on a residential property purchase. If you have checked both boxes below, your investment is secure and market-proof.
2-Point Investment Stress Test
▢Is it in a desirable location considering transportation, facilities, and community elements?
▢Will your returns sufficiently cover your mortgage?
If the answer to both questions is “yes”, your investment passes the stress test.
3. Time it Right
True, it’s almost always a good time to invest in Israel. However, timing your investment well is part of any smart real estate decision. Data suggests that right now the market is ideal for investment purchases.
According to recent CBS reports, the market is picking up again after a slowdown starting in 2015. At the moment It’s still a buyer’s market, so if you have the capital, the time to act is now.
- Get Expert Help
We’d be crazy to leave this part out. While the benefits of investing in Israel are enormous, a seasoned insider can help you navigate the experience to a successful conclusion. We are not just real estate advocates, we are also expert listeners. We’ll make sure we understand your goals so we can aid and accelerate the process, leaving you free to focus on other things.
Get in touch with us for personalized guidance on your transaction.
The Getter Group will be in Brooklyn, Monsey and Lakewood from the 17th – 19th February, book a free consult with Mr. Shia Getter, limited slots available!
This article is intended to provide general information about the subject matter covered. It is not meant to provide legal opinions, offer advice, or serve as a substitute for advice by licensed, legal professionals.
The author does not guarantee that the information contained herein is complete or accurate and does not assume any liability for any loss or damage caused by errors, inaccuracies or omissions contained in this article.