Tips and advice before buying properety
We have collected for you a list of factors which should be taken into account before investing in real estate. You can greatly reduce the risks of your investment by properly investigating the following aspects of the real estate market. A suitable examination should enable you to make an educated and wise decision.
There are vast differences between different areas, even if they are within the same state. Therefore, the following factors should be examined in detail.
- Economic statistics – average household income, median household income, local unemployment rate, percentage while/blue collar workers. To receive employment and unemployment date, click here.
- Population statistics – population density, average age, population growth rate, division of population by age, positive/negative migration. For population statistics, click here.
- Real estate statistics – percentage of houses rented/leased/owned, rate of unoccupied houses for sale, average and median house prices.
- Other statistics – local crime rate, level of education, proximity to academic institutions, history of natural disasters. For crime rate statistics, click here.
A comprehensive check of the real estate transactions that have taken place over the past few months in close proximity to the property should help you understand the profitability of the investment.
You can compare all of the recently sold apartments by different criteria, including size of property, number of bedrooms and bathrooms, year in which it was built, price, date of sale, address, etc.
To receive current information on property prices, click here.
A historical check of the property’s previous transactions and the entirety of information on these transactions: date, price, and names of parties involved in the transaction.
The specific property
In addition to the aforementioned searches and checks, we recommend looking into the following factors before investing in a property:
- Home inspection: Hiring a professional who will provide you with a report of the type and nature of renovation that needs to be done on this property. The report will include: status of the infrastructure, foundations, external parts, gutters, roof, electric system, water, sewage, ventilation system (heat and a/c), inside of house, yard, etc.
- Renovation cost: You should be able to calculate which materials and type of work you will need based on the home inspection cost.
- Insurance: How much will a home insurance policy cost? What is the deductible and how much is the policy worth? What items are covered? What taxes (property tax, home owner association tax) will be applicable?
The following websites are considered the best in the U.S. real estate market and can provide you with all of the information mentioned above.
Qualified property management firm
Due to the geographic distance between Israel and the U.S., many of our clients choose to hire a local qualified property management firm. The firm is responsible for locating and checking out potential renters, carrying out the required renovations, inspecting the property weekly, managing the day-to-day bills and finances of the property, holding onto receipts and creating reports for all of the above actions.
- Shop around online – Look up the company’s website for a first impression. Search the company on a search engine to find out more information – especially from previous customers. It is safe to assume that if a company has a bad reputation, you will be able to find customers’ complaints online. Two great websites with this information are YELP and Better Business Bureau.
- Check with the firm’s customers – There is nothing better than a personal recommendation from a customer who has worked with the company.
- Referral from a real estate agent that you have a good relationship with.
- Proper certificates and licenses – Check that the employees at the firm have either a broker’s license or a property management license. You can check for these on the following website: State Real Estate Commission. Determine whether the company belongs to any of the following professional organizations: Institute of Real Estate Management , National Apartment Association , National Association of Residential Property Managers.
- For FAQs, click here.
You can locate qualified management firms through the following websites:
To find qualified management firms by location: T-REX global.
To find qualified management firms by location and type of property: All property management.
Need professional tax advice?
Leave details and we will get back to you soon
Opening a U.S account
Working with an Investment Manager
Tips and advice before buying properety
Tips and advice before buying property
Contributing to the Community
Us, at VirtueTax believe that beyond excellence in providing professional services toour clients, we must assist and support those in Israeli society whose fate has not improved.Our vision includes business entities and social entities joining hands together and having a shared sense of drive to promote all aspects of Israeli society. Therefore, we have a deep commitment to both Israelis in need and to voluntary bodies focused on helping them. As part of this mission, the company purchases and delivers essential products to those in need in cooperation with organizations such as the “Association for a Turnaround in Education”. Our additional area of activity focuses on transferring funds as donations to animal shelters such as “Jerusalem loves animals” and “Mateh Yehuda loves animals”. We believe that our active involvement in Israeli society, provides not only an important service to the community, but also improves our professional teams.