Why is the 'Rental Yield' so low in Tel Aviv (2.5%)?

Property prices in Tel Aviv have risen much faster than rents due to high demand for ownership as a safe haven asset. This disconnect means renters pay a relatively small fraction of the property's value monthly compared to other global cities.

What is 'Madad' and how does it affect my mortgage?

Madad is the Consumer Price Index (CPI). If your mortgage track is 'Linked to Madad' and inflation is 3%, your remaining PRINCIPAL balance increases by 3% that year. This can cause you to owe more money even after making payments.

How much is Purchase Tax (Mas Rechisha) for a first apartment?

For a single/first apartment, you pay 0% on the first ~1.98M ₪. The bracket rises to 3.5% and then 5% above 2.3M ₪. For a standard 4M ₪ Tel Aviv apartment, expect to pay around 100,000 ₪ in purchase tax.

Is 2025 a good time to buy an apartment in Tel Aviv?

With interest rates still high (~5%) and rental yields at a historic low of 2.5%, buying in 2025 is mathematically difficult. Unless you plan to hold for 15+ years, renting and investing the difference in the S&P 500 often yields 3x more wealth over a decade.

🇮🇱 Tel Aviv Edition

Tel Aviv 2025: Why Buying is "Mathematical Suicide"

⚠️ Warning: Rental yields are ~2.5%. Is it better to just invest in the S&P500? See the math on Mas Rechisha, Madad, and cost of waiting.

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