Economy · Full coverage

Buying a 2.5 Million Shekel Apartment Costs 155-185K Shekels More Than Contract Price

How 2 Israeli newsrooms covered this story — translated into English and compared side by side.

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First reported by N12 · 1 hour ago

What happened

Buying a 2.5 million shekel apartment in Israel involves additional costs of 155,000 to 185,000 shekels beyond the contract price, including purchase tax, legal fees, brokerage, renovations, and financing. Purchase tax varies greatly depending on buyer status, and financing costs can nearly double the loan amount over 25 years. Buyers should carefully budget all expenses before negotiating.

01Additional costs beyond contract price for a 2.5 million shekel apartment range from 155,000 to 185,000 shekels.
02Purchase tax is about 20,538 shekels for first-time buyers but can reach 200,000 shekels for buyers of additional properties.
03Legal fees range from 0.5% to 1% plus VAT; brokerage fees typically 2% plus VAT but negotiable.
04Renovation and moving costs add tens of thousands of shekels, varying by apartment condition.
05Mortgage interest on a 1.875 million shekel loan over 25 years at 5% totals about 1.41 million shekels.
06New apartments have VAT included and payments linked to construction cost indices, which have risen recently.

Summary translated & synthesized from the sources below by baba. Read each original for the full report.

In this story

OrganizationsBank of Israel