Adapted edition, 6 November 2026. First published in 2022.
Consider a hypothetical apartment costing NIS 1.5 million and renting for NIS 4,500 a month. Twelve paid months produce NIS 54,000, or a gross yield of 3.6% of the purchase price. That is the starting calculation.
Allow for vacancy and repairs
One empty month and NIS 8,000 of repairs leave NIS 41,500 before other expenses. Against a total investment of NIS 1.6 million, that is approximately 2.59% before tax and financing. Replace these illustration figures with property-specific estimates.
Use the full investment cost
Add purchase tax, professional fees and initial works to your acquisition budget. Estimate management, insurance and maintenance separately. If you live abroad, include the cost of local help and consider how exchange-rate movements affect the money you receive in your home currency. Calculate cash flow after mortgage payments as a separate measure.
Test the assumptions
Compare completed sales and ask for evidence of actual rental agreements in similar homes. Run a longer vacancy scenario and a lower eventual selling price. Use the property tax guide and calculator for an initial estimate, then confirm the treatment applicable to your circumstances before committing.
Discuss your property plans with Alla
Official information (Hebrew) · Completed property transactions