Please note: advisory meetings and the service itself are provided in Hebrew only. These guides are here so you can read and understand the topic in your own language.
"Why pay rent when you can pay a mortgage?" It sounds logical, but the comparison is more complex.
What does buying cost?
Not all of the monthly payment is an "expense." Part of it is principal: savings in the apartment. The real expense is: - Interest on the mortgage. - Linkage on linked tracks. What is the CPI? - Maintenance, insurance and municipal tax (some of which you also pay when renting). - Transaction costs – tax, lawyer, agent. All the costs of buying - Opportunity cost – what the equity would have earned in another investment.
What does renting cost?
- The rent – a full expense.
- Instability – moves, price increases.
What decides?
- How long you will live there – transaction costs are spread over the years. Moving soon makes buying more expensive.
- The ratio between apartment price and rent – when apartments are very expensive relative to rent, the financial advantage of buying shrinks.
- Appreciation – not guaranteed, but historically apartment prices in Israel have risen over time.
Not everything is money
Stability for the children, freedom to renovate, security: all of these have value that is not measured in a table.
Elia's tip: Calculate how much "rent" you pay the bank: interest + maintenance + opportunity cost. Compare that to the rent, not the whole monthly payment.
This article is general information and is not personal advice or a commitment. Rules, interest rates and taxes change from time to time, so check the current situation and your own figures before any decision.