Overview of Mortgage Insurance

Article provided by Danny Newman at Goldfus Insurance

There are many steps to purchasing a property – especially if you need to take out a mortgage to do so. Some of us will choose to work with a mortgage broker, while others will take on the challenge alone. In the excitement of it all, many people rush over one of the most important elements – mortgage life insurance and structure insurance.

As this is something that banks often tell people about at the last minute, these insurances are often implemented in a hurry without really looking into the details of the policies being purchased or correct consideration of all the necessary elements. In this two part series we will explain about mortgage life insurance and structure insurance in Israel.

In this article we will be focusing on the key elements of structural insurance so you can be sure that you are putting a comprehensive policy in place.

Is there more than one way of insuring structure?

In essence, there are two ways of insuring structure: Rebuild Value Insurance and Market Value Insurance.

The banks usually only require the mortgage holder to purchase the rebuild value policy up to the bank’s commissioned appraised value. Often, this rebuilding value required by the bank may only cover the bank’s insurable interest, and may not fully cover the full value of the home or upgrades such as high level flooring, upgraded kitchens, central AC systems etc. It is still possible to purchase either more comprehensive rebuild value or market value insurance policies with a lien to the mortgage bank on the policy, to meet the bank’s requirements. Therefore it is important to understand the differences between the two options.

So what is the difference?

Rebuild Value Insurance covers the cost of rebuilding the structure (based on the size of the property) in the event of total damage, giving you the ability to rebuild your structure on the property/land that you already own. The disadvantage in insuring the Rebuilding Value, is that the rebuilding of the structure may be delayed or dependent on your neighbours’ ability to rebuild. While this is the basic level of cover required by the bank, it does not necessarily mean that it is the correct policy for you.

Market Value Insurance covers the structure according to the market value at the time the policy is set in place. In the event of total damage, the insurance company takes ownership of your property, giving you the ability to take the money from the claim and purchase another property at any location. The market value can be adjusted over time as the property increases or decreases in value. It is important to update your policy once every three years to make sure that the sums insured are a true reflection of the property value.




See the rest of the article here: Goldfus Article on Website

For more information about Mortgage Insurance Packages, contact Goldfus today!

2017 Guide to Tax Payments and Relief on Rental Income of Residential Apartments in Israel

Individuals that own an apartment in Israel (hereinafter “taxpayer”) and receive rental income from it, need to check if they owe tax on the income. This article acts as a guide for tax payments and tax relief on rental income of residential apartments in Israel.

There are three options that a taxpayer can choose from. Each option can be chosen for each rental apartment separately:

  1. Tax exemption (full or partial)
  2. Reduced tax at a flat rate of 10%
  3. Tax based on the regular tax brackets

The Tax Exemption Option (Full or Partial)

The 1990 Income Tax Ordinance (Tax Exemption on Income from Residential Apartment Rental) sets several cumulative conditions for providing an exemption from tax on rental income from residential apartments in Israel:

  • The apartment, by its nature, is intended for residential use;
  • The apartment is not registered as a business asset and is not required to be registered a such;
  • The apartment is rented to an individual. In certain circumstances it is also possible to rent out the apartment to an organization.
  • The apartment is used by the tenant strictly for residential purposes only; the taxpayer has a declaration in writing stating this, or alternatively has a rental agreement clearly stating that the apartment is used by the tenant as a place of residence only.

Monthly rental income includes income from all residential apartments rented out either by the taxpayer,  his/her domestic partner, or their child up to age of eighteen, whether the apartment is rented out as a place of residence or for commercial purposes (for example, a residential apartment rented to a lawyer).

Calculating the Exemption:

  1. Full Exemption: If the total monthly rental income does not exceed the amount of NIS 5,030 in any month of 2016 (hereinafter the “Exemption Ceiling”), the total income will be exempt from tax as long as the above mentioned conditions are met. The exempt ceiling for 2017 is NIS 5,010
  2. Partial Exemption: When the monthly rental income is greater than the Exemption Ceiling) but does not exceed double this amount (NIS 10,060), the exemption is to be calculated in the following manner:
  • Subtract the Exemption Ceiling from the monthly rental income actually received, and the difference between them will be considered as the surplus amount.
  • Subtract the surplus amount from the Exemption Ceiling. The difference between them is the exempted amount.
  • Subtract the exempted amount from the residential apartment rental monthly income actually received. The difference is the amount on which tax is owed.

For Example:

The monthly rental income actually received is NIS 6,000. Since it is greater than the Exemption Ceiling, but lower than double the ceiling amount it will be taxed as follows:

A.   Residential apartment rental income actually received NIS 6,000

Exemption Ceiling                                                                       (NIS 5,030)

Amount exceeding the ceiling                                                      NIS 970

B.    Exemption Ceiling                                                                NIS 5,030

Amount exceeding the ceiling                                                     (NIS 970)

Exempted amount                                                                         NIS 4,060

C.   Residential apartment rental income actually received          NIS 6,000

Exempted amount                                                                      (NIS 4,060)

Taxed amount                                                                               NIS 1,940

The taxpayer’s marginal tax rate will apply to the taxed amount, taking into consideration their total income. (Regarding income from apartment rentals, the first tax bracket is 31%. For taxpayers who are sixty years or older during the tax year, the first tax bracket is 10%).

The taxpayer is allowed to deduct from the taxed amount any ongoing expenses related to the production of the rental income, such as: legal fees for preparing the rental contract, ongoing repairs paid throughout the tax year, and depreciation of 2% of the cost of purchasing the rented structure[1] (not including the cost of the land).  The expenses deducted will remain at a ratio between the amount of rental income liable to tax and the total rental income earned. Example- the ratio between the total income of 6,000 NIS and the taxed amount of 1,940 NIS, as mentioned in the example above, is 32%.  Similar to this ratio, 32% of the total expenses will be able to be deducted from the taxed amount of 1,940 NIS.

The taxpayer’s marginal tax rate will apply to the taxed amount, taking into consideration their total income. (Regarding income from apartment rentals, the first tax bracket is 31%. For taxpayers who are sixty years or older during the tax year, the first tax bracket is 10%).

The taxpayer is allowed to deduct from the taxed amount any ongoing expenses related to the production of the rental income, such as: legal fees for preparing the rental contract, ongoing repairs paid throughout the tax year, and depreciation of 2% of the cost of purchasing the rented structure[1] (not including the cost of the land).  The expenses deducted will remain at a ratio between the amount of rental income liable to tax and the total rental income earned.  Example- the ratio between the total income of 6,000 NIS and the tax owed of 1,940 NIS, as mentioned in the example above, is 32%.  Similar to this ratio, 32% of the total expenses will be able to be deducted from the taxed amount of 1,940 NIS.

If during the sale of the residential apartment for which the exemption option was chosen, capital gain tax is owed, the depreciation that could have been claimed against the exempted part of the rent income will be able to be deducted from the value of the purchase thus lowering the capital gain tax.

Please note that in order to settle the tax payment in the event of a “partial exemption” the taxpayer will need to open a file with the Tax Assessment Office near his/her place of residence for the purpose of reporting property rental.

Disqualified/No Exemption: When the amount of monthly income from rent exceeds more than double the Exemption Ceiling (NIS 10,060), there will be no exemption and the entire amount of monthly income from rent will be liable to tax. In this situation it will be possible to choose to be taxed either via the reduced 10% flat rate tax charge or via the tax brackets option (see below).

2.  The reduced 10% flat rate tax option (hereinafter “reduced tax option”):

According to section 122 of the Income Tax Ordinance one may pay a reduced 10% flat rate tax on rental income from residential apartments in Israel.

This option will apply under the following conditions:

  • The apartment is used as a place of residence in Israel.
  • The income from the rent is not considered income from a business as defined in section 2(1) of the Income Tax Ordinance.

Please note that if you have chosen the reduced tax option, you will not be entitled to deduct any expenses from the production of the rental income and /or depreciation of the apartment, and you will not be entitled to offset, credits, or exemptions (including the exemption under the exemption option as discussed above) connected to the rental income or from the applicable tax. When the taxpayer sells the residential apartment there might be a need to pay capital gain tax. And that time, the depreciation amount that could not have been deducted as stated above from the rental income, will be able to be deducted from the initial value of the purchase of the apartment thus lowering the capital gain tax that might apply.

It should be emphasized that under this option, tax should be paid no later than 30 days from the end of the tax year in which the rental income was received. Payment after the above mentioned date will require the taxpayer to pay interest on the amount of tax owed.

Taxpayers with a file with the Income Tax Authority (ITA) can choose to make the payment on the Authority’s website using the Income Tax Payments application.

Taxpayers who do not have a file with the ITA can pay the tax at the Post Office by using a reporting voucher named “Request for Tax Payment on Income from apartment Rental” which is provided by the Tax Assessment Office near their place of residence. The back of the voucher has detailed instructions on how it should be filled out.

Please note that if your yearly rental income, for which you paid a reduced 10% rate tax, does not exceed NIS 333,000 in 2016, you might not be obligated to submit an annual report to the ITA. This is only if the rest of your income does not exceed the annual reporting requirement. In any event a tax assessment clerk can request you to file a report regardless.

It is not possible to request an exemption under the “1990 Income Tax Ordinance (exemption from tax on residential rental income)” and also use the reduced tax option on the amount that exceeds the exemption, from the same residential apartment.

You can choose a different tax calculation option for each residential apartment you receive rental income.
3. Tax Charges According to the Tax Brackets:

Under this option the taxpayer’s marginal tax rate will apply based on the entirety of his/her income. Please note that for rental income the first tax bracket is 31%, (apart from taxpayers who are 60 or older during the tax year, for which their first tax bracket is 10%). This option allows claiming ongoing expenses made during the production of the income.

If capital gain tax will be owed on the sale of the residential apartment for which this option was chosen, the depreciation amount that was claimed against the rental income will be deducted from the value of the purchase.If a taxpayer decides to choose this option, he/she will be required to file an annual report with the Income Tax Authority.

[1]  An individual who chooses the full exemption cannot deduct depreciation (a certain rate of the apartment’s value) from the exempt part of his rental income. An individual who chooses the 10% tax rate cannot deduct depreciation at all, as explained below.

Source: Dave Wolf Law Firm & Co

For more information regarding tax laws please contact Dave Wolf:

Partner at Dave Wolf & Co. Law Firm


New! Now selling plots and properties in Ramat Givat Ze’ev

Properties and plots are now for sale in the soon to be ready neighborhood of Ramat Givat Zev.

Building is going up fast!

You can start building your dream home today!

Contact us for more details!!

About Ramat Givat Ze’ev

Unbeatable Price: Plot for sale!

Mortgages In Israel

Buying a home in Israel often requires navigating the process of getting a mortgage. There are many pitfalls to the uninitiated and that is why many choose to hire a mortgage broker. Your broker can help guide you through the process to help you secure the best rate, the most optimal option, and handle everything administratively to help make the process as easy as possible. Davi Katz been working for 10 years as a broker in Jerusalem with Mortgage Israel. Contact Davi for a free phone consultations at 054.333.0039 or dkatz@mortgageisrael.com

Important Things to Know About Moving to Israel

Israel has long been a beautiful country to live in as well as a place that has been intriguing to visitors throughout the decades. The country offers a rich culture that people really enjoy being part of. While there are many reasons that someone may want to move to Israel, there is no doubt that once you arrive you will quickly feel right at home.

Find out what you need when it comes to moving to Israel and being able to enjoy the culture. 

What Makes Israel So Appealing to Expats?

Israel has so much to offer and no matter where you live in the country, beauty abounds. The climate varies from one area to another and in some places, it does get very cold although snow is very rare to see. For instance, in the capital city of Jerusalem, you may find temperatures a little cold occasionally while cities like Tirat Zvi experience extremely hot temperatures year-round. Thankfully, in those areas with the highest temperatures, it is usually simple to find a cool spring or even the beach to cool down in the water.

Known as the Holy Land, Israel is a country that offers beautiful rolling hills as well as deserts and white sand beaches. More than 60% of the country is desert land and stays very dry year-round.

Finding a Home in Israel

The local area you choose to live in is up to your own personal preference. As an expat, you may be able to purchase land or buy a home in Israel but it is best to seek counsel from a real estate attorney as well as a professional realtor when searching for a great home to buy. There are quite a few great choices when it comes to home rentals though and you may find that what you pay is lower than what you would pay in the United States.

Rental apartments and homes in Israel can be found for prices ranging from as little as 1000 ILS to over 20000 ILS. This is a cost of around $270 USD to just over $5000 USD. It is best to look for long-term homes but if you are only staying a few months, you can easily find quite a few beautiful vacation rentals for attractive rates as well. Working with a professional realtor is advised to find a home in Israel because only a realtor can show you the homes that are in great condition in the local area you may want to live in and will be able to help ensure your find a home that will be within your rental budget.

Is a Visa Required?

First, to go to Israel, your passport must be valid for no less than six months if you are American or coming from a country in the EU, Canada or Australia. If you plan to stay 90 days or less, you won’t need a visa at all. Staying longer than 90 days? You will need to apply for a visa.

If you plan to work while in Israel, you need to already have the job and your employer will need to apply for a work visa on your behalf. Without the company application to obtain the visa, you will not be allowed to work at all. If you are not working, you should check with the Embassy of Israel to consider other common visas for expats who are relocating to Israel.

Can I Bring My Vehicle?

One consideration to make when shipping a vehicle over is to ensure that it is on the list of approved vehicle models. You can check with the Israeli Ministry of Transport to check and see if your car will be approved for entry. You also need to know that all imports are required to have the speedometer in kilometers instead of miles and signals must work according to European code.

A certified letter from an Israel garage must be presented for the vehicle to be imported. The vehicle must have a clear title and be shipped with RORO, which means the vehicle will be driven, or rolled onto a ship for transport or it may also be shipped inside a container. A car may also be shipped via air, but this is usually reserved strictly for high end luxury cars and extremely expensive vehicles. When you contact a professional vehicle transport company to get a quote for services, be sure to check into your choices for shipment before you schedule transport.

What About My Household Items?

Household items can also be brought over to Israel with you. Choosing a professional overseas mover for the task is highly recommended. When you work closely with an agent on your move you can drastically cut down time needed to gather information and paperwork and ensure your move goes smoothly.

Only three containers or shipments are allowed per person into Israel within three years. All items shipped over will need to stay in your possession for at least five years from the date of shipment.

Once you make your move, you can enjoy all that comes from Israel and what this great country can offer your life. With plenty of points of interest, you can fill your days with many things to do and place to explore and enjoy your new life living in the country.

Great Vacation Rentals Still Available for Pesach 2014

Great Pesach rentals still available for 2014:

Large private home on a beautiful and quiet street in Nachlaot. Lots of natural sunlight, garden, and balconies. There are 6 bedrooms, but a possibility to rent fewer bedrooms for a lower price. http://www.yhij.net/property/a-spacious-6-room-house-3-floor-villa-pesach-rental-2014/

Private house located in the heart of Sha’arei Chessed still available for Pesach this year. Make your Seder in the holiest city, in the heart of it all. Can sleep up to 16. Plenty of room for all. Unbelievable price. http://www.yhij.net/property/keren-kayemet-private-house/

4 Bedroom fully furnished duplex in Nachlaot available for rent this Pesach and all year long. Can sleep 8 people. Large eating area to host eating guests. http://www.yhij.net/property/nov-5-room/

3 bedroom available for rent in Nachlaot for Passover 2014. One flight up with a balcony. Available at a very affordable price. Contact us for more details.

The lovely suite on Tekoa Street in Nachlaot is still available for Pesach. Perfect for a couple who needs a comfortable place to sleep while visiting friends or family in Nachlaot. http://www.yhij.net/property/luxurious-suite-for-short-term-rent-in-nachlaot-hotel-style/

Contact us now to see what else we have available and to see how we can help you have an unforgettable Pesach in the Holy Land of Jerusalem.


Getting Ready For Purim 2014? Purim 5774 in Jerusalem! – with YHIJ


Coming to Jerusalem for Purim? Need a place to stay? Contact info@yhij.net for inquiries!

This year’s Purim will be special if you come to Jerusalem. Purim here has always been an attraction for tourists and Jews from all the world. See a whole city enjoying this unique Jewish festival. Children and adults sending gifts and presents to each other. People giving tzdakkah and inviting each other to meals. Dancing crowds on all corners of the city. An unbelievable experience for all and everyone. You should let us help you find a suitable place to stay while you can make plans for these holy and spiritual days.

Visit http://www.yhij.net and go to Vacation rental.

Check us out on Facebook https://www.facebook.com/yhijrental – LIKE US & SHARE US

Contact us at info@yhij.net.

YHIJ & NadlanCom Wishes Everyone a Happy Chanukah

 Your Home in Jerusalem and NadlanCom would like to wish all of their former and future customers a Happy Chanukah. 

This is a time of real joy and happiness. A holiday of lights and smiles. May we only rejoice and live peacefully together and may we hear only good news.

If you still are looking to visit Jerusalem for Chanukah or if you are planning your visit for Pessach already, check out our short term and vacation rentals. If you want to rent out your apartment for Pessach or Sukkot just touch base with us and we will try our best to find a suitable tenant.

Also, visit us on Facebook at https://www.facebook.com/yhijrental and stay posted on new special offers and deals.

Happy Chanukah!

Your YHIJ and NadlanCom Team


All Short Term and Vacation Rental Offers – NOW ON FACEBOOK

Are you planing your trip to Israel and need a place to stay in Jerusalem? Do you have a family member or friend getting married in Jerusalem and you are coming to the holy city to attend? Or maybe you reside in Israel and want to come to Jerusalem to relax, calm down and pray at the Western Wall and experience a Shabbos or a whole Yom Tov in the most exciting city of Israel?

Then check out YHIJ’s new Facebook page Your Home in Jerusalem – Short Term and Vacation Rental.

Here you’ll find all available properties for short term rental. We’ll keep you posted about special vacation rental offers during Jewish holidays and the high season.

Visit our homepage http://www.yhij.net for amazing long term rental deals. Interested in buying a home in Jerusalem? Contact us any time and YHIJ will do its best to assist you.

You can contact us at info@yhij.net. Looking forward to being in touch.



Last Minute Chanukah Rentals in Jerusalem – Special Offers

Surprise your family! It’s not too late for the most exciting Chanukah present ever. YHIJ makes it possible!

Chanukah is coming and you should consider spending this joyful holiday with your family in Israel. Celebrate this Chanukah in the most meaningful way! Come to the holy city of Jerusalem and let the flame of  the Chanukah candles enlighten your life. Only in such a historic city you can truly experience being part of the Jewish nation and sincerely rejoice over the miraculous survival of the Jewish people throughout history.

YHIJ Special Offers – For this exciting vacation you can book one of our prestigious apartments in the Nachlaot and Rechavia area, downtown Jerusalem.

The Ibn Ezra 4 Room apartment is available. On about 80 SQM there are 3 bedrooms and 2,5 bathrooms. It’s a fully furnished, spacious and bright apartment suiting a family that wants to stay in the center of town, in Rechavia for an unbeatable price. It is 2 flights up with an elevator (not for wheelchair). Once inside the apartment is on one floor. Fully equipped and furnished, and can seat 15-20 in the dining area. This apartment is for orthodox Shomer Shabbos and Glatt Kosher tenants only.


Or take a look at the Nov 5 Room duplex. This fully furnished apartment is located in downtown Jerusalem on Nov Street. It has a large dining area. The apartment is located 2 flights up, and is fully equipped and furnished for your vacation needs.If you are not Orthodox Observant Shomer Shabbos & Glatt Kosher you may not use the utensils in the apartment – just the oven and refrigerator. nov5room

Their location in very convenient. Just a few minutes away from the famous Ben Yehuda street and a 20 minutes walk from the old city.

Contact us and book your favorite apartment now! For long term rentals and more short term deals visit our homepage.