Israeli Investor Buys Properties Abroad Due to High Domestic Prices
Renana Freinta, a 50-year-old former kibbutz member and real estate investor, has purchased two apartments in Spain due to the prohibitive cost of housing in Israel. Freinta, who currently rents in Jaffa, explained that "it's impossible to buy real estate in Israel, everything here is unreasonably expensive." She previously bought an apartment in Ramat Gan for 3 million shekels with her then-husband, but later decided to invest in Madrid using a balloon loan secured by retirement funds. Her fluency in Spanish and a contrarian investment strategy led her to Madrid, where she purchased a 70-square-meter, three-room apartment for 600,000 shekels. She entrusted a local agent, Diego, with full power of attorney to manage the transaction and subsequent rental, noting the strong tenant protections in Spain.
The initial investment in February 2020, just before the COVID-19 pandemic, yielded only a 2% return due to a significant drop in rental prices. After a renovation costing approximately 30,000 shekels, the apartment's rent was increased to 1,000 euros per month, a move Freinta is now very pleased with.
Following her divorce, Freinta retained the Madrid apartment and funds from the sale of the Ramat Gan property. She later invested in a second property in Spain, an apartment in Alicante for 700,000 shekels, purchased remotely based on photos and agent recommendations. This property, which she also rents out, now brings in 970 euros per month. She plans to purchase property in Romania next, viewing these foreign investments as both a future pension and an inheritance for her four children.
Freinta emphasized that her overseas investments are not an escape from Israel but a strategic move to secure her children's future and provide herself with additional options. She currently lives in the Ajami neighborhood of Jaffa, appreciating its diverse community. She advises potential Israeli investors to consider Spain, highlighting the pleasant lifestyle and the economic focus of real estate transactions, separate from political considerations.
