What are the reasons for the differences in yields between Europe and the United States?

Strong growth figures and a decline in unemployment. Employment indices in the United States continue a long-term trend, for the sixth consecutive year, of a significant decline in unemployment rates. These figures, together with the consistent increase in employment rates and growth, create a situation in which there is a consistent rise in demand for residential real estate and growth in the occupancy rate of commercial real estate. Compared to Europe, which experienced a period of economic instability, the US market presents better data that affects both returns and growth in the value of investments of existing assets.

Federal tax cuts – the US government’s tax-cutting policy creates an advantage for financiers and an opportunity to leverage existing capital to make investments with higher profitability. This convenient taxation policy generates more demand for real estate investment in the United States. Rather than diverting capital out of the country for tax reasons. The channeling of these resources hampers the real estate market and increases the property of income-producing properties and commercial real estate.

The cost of the land component is relatively low and allows for locating relatively inexpensive properties with growth potential. The real estate crisis in 2008 significantly affected the real estate market and created a general crisis that caused a significant decline in property prices and the inability of many homeowners to meet the repayment payments for the mortgages they took. The houses, which were foreclosed by the banks, traded at a value significantly lower than the value of the purchase, thereby giving the banks an incentive to sell them very quickly. As a result, many properties were sold at very low prices. This is the background to the fact that as a result of the recovery, many real estate properties are making a significant return to its value, and as a result we see a significant increase in yields.

A wide range of markets and assets. The American asset market is abundant with wide range of assets – residential properties, residential rental complexes, commercial and industrial properties, logistics centers, information and communication centers and assets related to health systems. Along with the extensive activity of real estate funds, a wide variety of investment types, business models and of course competition are created, combined with the growth and capital data flowing into the US market, the real estate market presents an alternative with a lower risk and a relatively stable cash flow, when compared with other investment channels.

Base prices are low. The size of the market and the scope of the projects make it possible to streamline procurement processes, receive cheaper financing, and lower input prices. The cost of construction coupled with the relatively low price of the land component in the United States, coupled with a large availability of land reserves for construction and development, leads to a lower asset value than similar assets in Europe.

Increase in demand for single-family homes. The socio-economic conditions in the United States create a preference for moving to suburbs and single-family homes. An increase in the standard of living, combined with road systems and ownership of a vehicle, enables the exit to the suburbs and the purchase of an adjacent property. In addition, it is important to note the transition of baby boomers back to city centers and the expenditure of many single-family homes for young families who wish to upgrade their living conditions.

Realization of risk. The latest real estate crisis in the United States exposed the level of risk inherent to the American real estate sector and the financial system that finances it. Reliance on high levels of leverage, lack of adequate regulation on financing bodies, and the likelihood of economic instability are apparently embodied by the market, is reflected in the high real estate yields we see in the US market.

What is a trustee and why would I need one?

A real estate transaction is one of the most significant transactions, and it is usually the biggest deal a person makes during his lifetime. This is a complex process involving many factors, and of course significant funds, combined with financing and the transfer of ownership.

The complexity of the transactions creates a situation in which we need an expert to oversee the legal elements of the transaction on our behalf and to represent us and our interests to other stakeholders. Legal advice and representation are critical when executing a real estate transaction in a market that you are familiar with and its importance is even greater when it comes to real estate transactions carried out abroad.

Real estate investors require legal advice and representation, since they generally do not familiar and understand the relevant legislation in the target market, and sometimes, according to the requirements of local law, representation of an attorney is required during the execution of real estate transactions. Sometimes, in real estate transactions, investors seek to use a trust mechanism to execute the transaction and to represent them for the following reasons:

Supervision of a complex transaction that continues over time. During a real estate development transaction in which financial assets are invested in the construction or improvement of existing properties, an external mechanism must be set to supervise the implementation of the milestones of the project and to ensure that the legal and contractual obligations are carried out in practice. The interests of the purchasers are maintained throughout the period of execution of the transaction. In this sense, the use of trust reduces the risk of failure related to non-fulfillment of the contract and the uncontrolled transfer of funds during the project.

Representation in the local market. In the event of an investment in another country, the local presence of the investor or his representative is required in order to carry out the actions required by the law and the relevant rules relating to the real estate transactions. The trustee representing the investor performs in his behalf operations that require attendance and provides the relevant professional advice, using his market knowledge, in addition to be a relevant license holder in the local market, the trustee can perform such actions as contacting the authorities and entering into legal proceedings on behalf of the investor.

Activity through a third party. Sometimes, when working with other investors, the investor will prefer to act through a trustee in order to distance himself from actions that may create tension between investors (such as negotiating, buying and selling or clarifying rights). The trustee creates for the investor the desired distance from actual involvement in the transaction.

Anonymity. Acting by a trustee, minimizes the investor’s involvement in the activity. Investors, for various reasons, may be interested not to expose the fact that they are taking activities that include buying real estate or investing in international real estate. Sometimes, when it comes to activity within the community where the investor lives, he may not want to expose the fact that he is an owner of an asset or that he must conduct business activity that could harm relations with people he knows.

Procedural and tax related issues. Sometimes, the use of the trust mechanism may be useful for tax considerations. The most prominent example is the issue of the transfer of intergenerational property and the realization of inheritances. The management of assets in trust enables the definition of clear rules for the realization of assets and the transfer of assets in accordance with the rules of succession. Use of trust enables the imposition of conditions for the transfer or realization of property by heirs.

When it is necessary to use the trustee, it is important to choose the appropriate professionals in terms of their skills and experience and pay special attention to the formulation of the terms of trust – whether it is a single trustee or mutual trust. The contract must clearly define the terms of the power of attorney and the actions that the trustee may take, and so on. An clear definition of the terms of the trust prevents unnecessary risks in the future and reduces the probability of interpretation of the terms of the trust by the trustee or by other participants in the transaction.

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Going into international markets involves many factors. First and foremost, it is the selection of the market in which we want to focus our investments. In each of the markets, we will examine the extent of the market risk, expected levels of return and the manner in which investments are actually made – issues related to registration, work with local companies, regulatory requirements and taxation. In addition, the economic conditions prevailing in the markets should be examined in depth, and the investment horizon should be examined – to what extent the markets will grow and lead to growth in the residential real estate market and income-producing properties.

We will examine the major markets that are gaining dominance and popularity among investors in Israel – the United States and Germany

Risk level in the market – the US market, continuing trends of growth. Employment rates are climbing, and the market is experiencing a consistent decline in unemployment rates. The recovery from the real estate crisis continues, along with consistent growth rates and increased investment in infrastructure and assets. The German economy is the most stable and growing economy among all European economies. It attracts the European market and the results of the German economy affect the amount of investment in real estate and the amount of money available to the Germans to purchase residential apartments and investment property. The German economy serves as a lever for rapid growth in large urban centers and generates demand for residential purposes both for purchase and rent. These markets continue their growth pattern.

Yield. The crisis of 2008 caused a sharp drop in prices and a significant crisis in the real estate market, most of the real estate assets lost their value and the US market entered a process of recovery from a significant crisis. Purchasing power in the United States was damaged and many property owners had to realize assets, for liquidity reasons or due to default. From the perspective of investors, it is an interesting opportunity to purchase assets below market value. The impact of the crisis is still felt today. The German market, as well as the European markets, still enjoys relative stability over time, and therefore the level of yields and the value growth of assets is more gradual and long-term.

Data availability and economic information are also available to entities that provide financing for the purchase of real estate assets in the United States and Germany. Information on real estate assets, business history, environmental conditions and prices of similar transactions is readily available. The same applies to market players, the state of companies and their stability, as well as the regulatory infrastructure – the relevant types of legislation, the restrictions applying to assets, current and future planning, and the ability to assess the risk level of the transaction as well as the level of risk and reliability of the tenants, and to make informed decisions, reduce risk and avoid surprises.

Asset Diversity for investment. The US real estate market is very diverse in terms of the types of assets available for investment, including residential properties, multi-family projects and a wide range of commercial properties, as well as investment in real estate companies and funds specializing in the acquisition, management, And housing in various parts of the US. In the German real estate market, preference is given to residential real estate, and growth and employment rates, coupled with the shortage of housing for rent, drive prices and yields upward, while the preference of tenants and regulation reduces the level of return in Germany. Typical German tenant will be interested in long term rental and therefore in long-term contracts. This is recognized by German legislation which tends to favor renters and tenants thus creating a long-term rental market.

Regulatory infrastructure – In comparison to the US market, the real estate market in Germany also enjoys a high standard of acquisition and asset realization, as well as regulation and supervision of property leasing contracts, which makes it easier to execute real estate transactions and investment in yielding assets. Unlike the United States, the tax regime in Germany prefers long-term investments and gives relief to property owners who hold the property for a long time (over 10 years). It can be said that legislation and taxation in the United States make it easier to quickly realize assets, as opposed to Germany.

Interest, yield and growth. Germany is a preferred destination for many European and Russian investors, who recognize attractive price levels, especially compared to other investment destinations such as London and Paris. The combination of stability and growth in Germany, enable investors to make long-term investments and low risk relative to other European countries. The United States is a very large real estate market primarily for local investors and real estate professionals. In contrast to the European market, where zero interest rates do not leave many choices for investors, foreign and domestic investors in the United States enjoy a greater selection of investment channels.

In addition to comparing these factors, it is also worth considering factors such as time difference and ease of arrival, differences between the investment horizon and the duration aspect. It is also important to remember the differences between the different economies and working in Euros versus the Dollar. Many investors will also consider cultural differences that may play a role, especially for Israeli investors.

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In the US market, it is possible to invest in several different types of residential real estate such as a Single-Family asset – a property for a single family – usually a single-family home, many times offered on a below market prices, due to defaults. This is an opportunity as the banks want to get rid of them quickly and the assets experienced a significant decline in value. Unlike single family assets, a Multi Family property is usually a building or a complex of several buildings or houses in a neighborhood. An asset of this type is usually owned by a single entity – a single investor, or an asset management company. In many cases, this is the ownership of a partnership – the incorporation of a number of investors for the purpose of purchasing a yielding residential property.

Multi-family asset market is considered very attractive and attracts large companies, including companies such as insurance companies that diversify their investment portfolio with such real estate assets.

Among the characteristics of the Multi-Family market:

• High profitability – occupancy of more than 90% of the leased properties.
• Assets managed by a management company that fully operates the services of the complex.
• Location of assets in high employment areas and in fast developing area.
• Diversity – assets include buildings, residential complexes and even entire neighborhoods

Among the benefits of investing in Multi-Family you can see:

• Financial flexibility in the type of investment
• Opportunity to generate passive income over time.
• Investment with a higher level of stability in terms of taxation and yield over time.
• The level of diversification is relatively high compared with the amount of purchasing capacity in Israel.

In most of the cases, Multi Family assets are handled by a management company. The company assumes responsibility for all aspects of the property’s operations – renovation and maintenance before delivery, routine maintenance and asset management on a daily basis, the property is marketed to tenants, the tenants are examined and signed. As far as the investors are involved, the meaning of working with a management company is payment for the management fees and maintenance expenses of the property.

The registration of a Multi Family property ownership is performed on one entity and therefore, the expenses and income are divided among all the partnering investors. If the property has an unoccupied apartments, taxes and maintenance must still be paid. In terms of taxation, an investment in such an asset can be made through the registration of an LLC company that allows recognition of expenses, losses and, of course, hedging of liability in the event of a claim for damages.

The significant advantage of investing in a multi-family asset is the possibility of starting the investment at a relatively low amount and creating, together with other investors, risk diversification and the possibility of taking effective financing. Even after management and maintenance fees, the expected yield in many cases is higher than that of real estate in Israel.

For multi-family investors, it is important to pay special attention to financing, taxation and due diligence issues. First, choosing the right company through which the investment is made – based on its familiarity with the local market, the history of similar transactions, bank and financial support, legal advice and familiarity with the planning bodies and American regulators. In addition, one needs to pay close attention to the issue of registration of assets and registration of investment for taxation purposes (e.g. through an LLC company mechanism) and carrying out due diligence for the property – the quality of the building, the area in which the asset is located (quality, economic robustness, (At the stage of entering into the actual operation of the asset).

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A stable economy – Germany is one of Europe’s leading economies with a gross national product of more than 3 trillion euros. The German market successfully deals with the euro crisis and maintains significant competitiveness vis-a-vis China and the United States. Despite the turbulence in Europe, the labor market is growing along with a significant drop in unemployment. Zero interest rate combined with the weakness of the euro, create an attractive opportunity for investment in German real estate.

A variety of areas suitable for investment at different levels. Germany has a number of large urban spaces – Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg and Munich – each of them provides a mix of investments and different levels of risk and profitability.

Stability and transparency – The German real estate market, coupled with the economic situation and consistent growth, offers a high degree of stability in property prices and rental yields, compared to other European countries, with regulatory stability that regulates and supervises real estate transactions, registration and taxation. It should also be noted that rental contracts are signed for relatively long periods of time and that there is still a significant shortage of rental properties.

Lower yield levels due to lower rental prices compared to other destinations. Rental prices in Germany, with the possible exception of Berlin and Munich, have grown at a slower rate than property prices. It can be assumed that there is room for growth in these levels of return in the coming years.

European citizenship is not required for investments and acquisitions in Germany, and all transactions must be accompanied by legal counsel and accompanied by a notary for the purpose of obtaining approval and registration of documents.

Legislation that prefers the rights of tenants and supervision of rental levels. In Berlin, for example, according to the municipal data, about 85% of city residents live in rented apartments, a situation that dictates preference to tenants and a focus on supervision of leases, with attempts to curb the rate of rent increases. As an example, one can see the “Milieuschutz” regulations that limit the division and re-registration of separate apartments in buildings. This re-registration was halted until 2020, which means postponing the registration of separate assets and reducing the attractiveness of investment in different areas of Berlin.

Taxation on real estate assets – The rate of tax on real estate investments is 25% on income from capital gains and rental flows. There are tax benefits at the marginal tax rate for investors holding assets over a period of time exceeding 10 years. There is a tax on income from an asset for residential rent, but the tax is calculated progressively and considers the taking of mortgages or loans for the purpose of financing the property. In addition, German law enforcement agencies allow residential real estate investors to deduct part of the operating expenses and ongoing treatment of the property, thus receiving relief in the amount of tax.

In addition to tax payments in Germany, the individual investor must pay an additional tax in Israel, at a rate of 15%. Since Germany is a federal country, tax rates vary from region to region. When buying property in Germany, purchase tax, property tax and VAT are required to pay 19%. The purchase tax in Germany is lower and varies from country to country, but it usually ranges from 4 to 6 percent. A tax treaty was signed between Israel and Germany that effectively prevents double taxation on investments.

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The city of Cleveland, on the banks of Lake Erie and close to the Pennsylvania border, is considered one of the most successful examples of an industrial city that has succeeded in reinventing itself. As a result of its location, Cleveland started as a traditional industrial center located at a commercial crossroads, but with the decline of traditional industry, the city was forced to cope with economic crisis and to re-cultivate both the urban city fabric and the economic infrastructure. As of today, there are almost 400,000 people living in the city, while the metropolitan area of ​​the city is home to more than two million residents.

Today, the properties in Cleveland are traded at relatively affordable prices and constitute an opportunity for investment. In addition, it is important to pay attention to growth in two trends that will have a major impact on the growth of real estate value in the city – the baby boomers’ aging, which is driving demand for smaller assets that are located closer to urban and leisure centers and increased demand for urban properties from the Y generation. A high walkability neighborhood factor (the amount of spaces within walking distance that include shops, entertainment, workplaces and public spaces).

Here are five things that might interest you when considering an investment in Cleveland.

1. Cleveland is experiencing a period of growth and recovery after exiting the economic crisis that caused a nearly 30% fall in real estate prices. Currently, Cleveland is a market of buyers when real estate market operators report steady growth of between 5-10% in rent rates. The improvement in the economic situation and the growth in the city’s workplaces create a positive flow of residents into the urban area and increases the demand for housing.
2. Cleveland is a diverse city – the city and the surrounding urban area, providing a large number of neighborhoods and properties at different levels of prices and population. The city has rental complexes, neighborhoods with high-rise buildings and of course many neighborhoods of townhouses and single homes. A strong presence of Fortune 500 companies in the city contributes to employment growth, reduced unemployment and consistent demand for commercial real estate, office space and industrial buildings.
3. Significant investments in urban renewal and upgrading of urban infrastructures. A massive investment in Cleveland’s Down Town increases the district popularity both in terms of the entertainment environment and as an upgraded residential area. The main development momentum in Down Town occurred between 2010 and 2014 with a massive investment of more than $5B in the development of commercial real estate, residential and infrastructure, during which more than 16 million square meters of commercial and revenue-generating properties were built.
4. Cleveland is a leading cultural center in Ohio and in the United States – a stage arts center and five theaters in the Theater District join four museums and the Rock ‘n’ Roll Hall of Fame and 4 sports teams for which Cleveland is their home base. Adding to this are 27 high education institutions that are concentrated in the city and you will get a first-class cultural destination with varied entertainment options.
5. Cleveland is one of the most powerful destinations in Airbnb’s asset map. Several factors contribute to this – Cleveland is an attractive tourist destination for domestic tourism – a combination of tourist attractions and a renewed urban environment, with a large number of cafes, restaurants and entertainment venues. High demand for short-term rental properties, an increase in the number of young people in the city’s population and a number of taxes on hotels (such as 5.5% hotel accommodation and 3% tax on temporary hotel stays) make investing in short-term rental properties a profitable opportunity in the city.

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Before making the decision on the target market for investment, it is worth examining the different characteristics of the markets so that you can make an informed decision to suit your profile of activity and the type of risk and returns you can expect.

American real estate market

Market risk level – The real estate market in the United States enjoys an extensive exposure and transparency as well as information about real estate properties, business history, environmental conditions and prices of similar transactions- all are available in an accessible and comfortable manner. The same applies for market players, the state of companies and their stability, as well as the regulatory infrastructure – the relevant types of legislation, restrictions applying to assets, current and future planning, and more. The availability of data and economic information is also true for entities that provide financing for the purchase of real estate, the ability to perform preliminary checks and the ability to assess the risk level of the transaction, as well as the level of risk and reliability of the tenants, make it easier to make informed decisions, reduce risk and avoid surprises.

Subprime crisis. The crisis of 2008 caused a sharp drop in prices and a significant crisis in the real estate market, with most of the real estate assets losing their value, with a market entering a process of recovery from a significant crisis. Purchasing power in the United States was damaged and many property owners had to quickly realize assets, for liquidity reasons or as a result of default. From the perspective of investors, this situation became an opportunity to purchase assets below market prices. The impact of the crisis is still felt today and there are many assets at attractive prices.

A wide range of properties for investment. US real estate market is very diverse in terms of types of assets available for investment, including residential properties, multi-faceted projects and a wide range of commercial properties, as well as investment in real estate companies and funds specializing in the acquisition, management, and residential areas in the United States.

The real estate market in Germany

Stability and level of market risk – the German economy is the most stable and growing economy Europe. German economy is pulling the European market and the strength of its economy affect the investment level in real estate and the funds available in the local market residential apartments and investment property. The German economy serves as a lever for rapid growth in large urban centers and generates demand for residential purposes both for purchase and for rent. With long-term contracts, and German legislation tendency to favor renters and tenants, the market favors long-term investment in residential assets.

Regulatory infrastructure – Real estate market enjoys a high standard of both acquisition and asset realization, as well as regulation and supervision of asset leasing contracts, regulatory stability and legislative infrastructure – all of which make it easier to execute real estate transactions and investment in yielding assets. In addition, the tax regime in Germany favors long-term investments and gives ease to property owners who hold the property for a longer period of time (over 10 years).

Interest yields and growth. Germany is a preferred destination for many European and Russian investors, who recognize attractive price levels, especially when compared to other investment destinations such as London and Paris. The combination of stability and growth in Germany, enable investors to make long-term investments and low risk relative to other European countries.

In comparison between the two markets, factors such as time difference and ease of access, the taxation regulation and its effect on the yield, complexity of the transactions, as well as differences between the investment strategy and the duration aspect, should be considered. It is also important to remember the differences between the different economies and the difference between working in Euros versus the Dollar. Many investors will also consider cultural differences that may play a role, especially for Israeli investors. The number of Israeli activists in the German and US markets now allow Israeli investors to have a choice regarding the type of their partners and the nature of investment in these markets.

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Although a $100,000 sum does not allow a wide range of options in Israel, it offers a large number of opportunities abroad – different types of real estate, diversified projects and investment in funds.

So why should we turn our money into real estate?

Return on investment – Investment in real estate produces a more stable flow of income than investing in the capital market, and an asset acquired for investment usually generates a steady stream of income on a rent basis. Are gains on the capital market higher than real estate investments? It turns out that over time, the profitability of the capital market is similar to the profitability of real estate mainly because real estate investors tend not to sell their investments and hold them longer. Ease of investment, economic stability and regulatory transparency make it possible to achieve better returns over time.

Liquidity – It is true that investment in the capital market is more liquid and easier to realize. Today, a buy or sell order is made at the touch of a button from a computer or phone and the ability to meet with cash is much easier in the capital market. However, the investment of capital in a real estate fund that specializes in asset management or entrepreneurship, becomes similar to investment in a mutual fund, with high liquidity – real estate funds are public companies that are traded on the stock exchange and it is possible to buy and sell the fund units at any time.

The level of risk – the two investment channels are exposed to different types of risk, but it is possible to say that the level of risk in real estate investment is lower than that of a similar investment in the capital market. The level of stability of investment in real estate is higher than investment in capital assets and the revenue model is steadier over time. Investment in real estate by its nature is a long-term investment, thus avoiding investors’ impulsive decisions of buying and selling.

The various risk levels and the lack of correlation to the capital market enable investors to diversify into their overall investment portfolio by diverting part of the money to the capital market and part of the real estate market, thereby neutralizing the possible risks in both channels. Make up for volatility in your stock options.

Protection from inflation – Since lease contracts of real estate assets usually include protection clauses that link the rent to an index or currency exchange rate, it can be said that investment in real estate offers some protection from inflationary erosion – as opposed to investment in the capital market exposed to market fluctuations and currency exchange rates, without sufficient protection.

Investment Diversification – as opposed to a local investment in a single asset related to one market, investment in REIT funds enables real estate investors to create a certain dispersion capacity and higher liquidity, since the purchase of units in a real estate fund is similar to the purchase of units in a mutual fund. In addition, the funds invest in a variety of different assets, so that a certain diversification of the investment is achieved.

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If you were to ask where you would like to travel in the United States or where you would consider investing in real estate, not many of you would offer me Cleveland Ohio, much less famous than New York, Los Angeles and Chicago, and less familiar to many Israelis like Florida and California. However, Cleveland has a lot to offer.

The city of Cleveland, located on the banks of Lake Erie and close to the Pennsylvania border, is considered to be one of the most successful examples of an industrial city reinventing itself. Due to its location near the river and the lake, Cleveland grew as a traditional industrial center and a significant crossroads, but with the decline of traditional industry, the city managed to cope with economic crises and to re-cultivate both the urban fabric and the economic infrastructure. There are almost 400,000 people living in the city, while the city’s metropolitan area is home to more than two million residents.

Downtown Cleveland – where it all started.

Cleveland down town is the oldest historic part of the city and the starting point of settlement in the Cleveland area.

Recovering from the financial crisis, the main development momentum in Down Town occurred between 2010 and 2014 with a massive investment of more than $ 5 billion in development of commercial real estate, residential and infrastructure. At this time, more than 16 million square meters of commercial and revenue-generating properties were built and renovated.

The Public Square is the place from which the city actually started, and the square is still in the same place that dates early 19th century – in the heart of downtown. The square serves as a public space for gathering, demonstrations and traditional celebrations such as Independence Day events. The Kew Tower, near the square, is the tallest building in Ohio. Down town includes the following quarters:

The Warehouse District – The name of the city’s urban renewal district in the early 1990s attests to the city’s commercial past when Cleveland served as a central maritime logistics junction. Today, the district houses the Municipal Sports Hall, home to the Cleveland Indians, Cleveland Cavaliers, the Cleveland Monsters and the Cleveland Gladiators. In addition, the Quarter contains fashionable residential buildings, commercial centers and office buildings.

The mosaic of downtown Cleveland

The Theater district, home to the Stage Arts Center, the second largest in the United States, serves as a cultural crossroads for the city and Ohio. He received his name from the theater district of five different theaters located near the center of the arts. The quarter underwent an external renewal in 2014, which included the renewal of external facades, streets and public spaces at an investment of $ 16 million.

Adjacent to the theater district is the Civic Center, which houses the city’s public buildings – the court center, a public library, the Cleveland municipality, and federal and federal court buildings. Three shopping centers and public parks are also located in the quarter.

The Nine Twelve District Financial Center is a prime location in downtown, with its many office buildings but also restaurants, recreation areas and many residential buildings.

One of the most famous points of interest in Ohio is the North Coast District – home to the Rock ‘n’ Roll Hall of Fame. The famous building attracts many visitors, located near the Science Center and Maritime Museum.

The city’s fascinating urban mix is ​​complemented by the University Quarter and the University of Cleveland, as well as the Flats area, which has undergone the city’s most intensive urban renewal effort – on the ruins of the old buildings, hotels, residential buildings and offices were built.

The significant investment in the downtown area and long-term economic growth make Cleveland a city that combines a regional employment center with residential areas, public institutions and services and a variety of entertainment venues – all in a diverse and renewed urban environment that attracts not only the city’s residents, but also offer a real estate opportunity.

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Stability – The U.S. real estate market is characterized by a relatively high level of stability, at several levels, all affecting real estate investment. Economic stability and consistent growth in the standard of living in the United States generate consistent demand for both commercial real estate and residential real estate. At the same time, stability leads to growth in the value of existing assets. The transfer of capital to the US offers investors a lower level of risk (since they can expect the market to be relatively uncertain) and expectations of growth in asset values ​​as well as income from yielding assets. Long-term planning ability is better when compared to the Israeli market, which is undergoing a process of instability due to reforms by the Ministry of Finance and changes in taxation methods for rental apartments and investment properties – the US market offers better regulatory and taxation stability.

Return on Investment. Israelis who dedicate capital for investment in real estate in the United States are given the opportunity to see higher returns compared to similar investment in Israel after taxes and expenses – real estate investment in the US may yield higher yields over time. In return on investment in real estate funds that show consistent growth while giving dividends over time, even on relatively low investment amounts.

An opportunity to start with relatively small amounts of investment compared to Israel – an investor who wants purchase real estate assets but does not have sufficient capital that allows a purchase of an asset in Israel, is able to use the same funds for investment through entrepreneurial companies, real estate funds or the possibility of purchasing properties at relatively low prices in the United States. US market allows an entry level investment starting from $50-100,000 and enjoy a long-term yield. Low initial capital and the ability to raise capital to finance acquisitions simplifies investing in the United States.

Simplicity of the business making process in the real estate US domain – Stability coupled with a standardized and accessible system that is regulated and closely monitored – both for entrepreneurs and for investors – significantly shortens the time required to start commercial real estate activity, as well as the ability for effective planning, transparency in regulations and lack of bureaucratic restrictions, ease work processes, improve yield and minimize risks during real estate projects.

Diversity – The sheer size of the US market provides a wide range of options for investment in real estate – the ability to diversify investment between different types of assets, areas with different characteristics and a wide range of companies operating in this market – all these factors encourage investors to make informed decisions and reduce investment risk. This diversity is added to the large number of market players, offering investors with a wide range of business models and methods of operation in the industry – residential investment, individual assets or housing clusters, income producing properties, various types of commercial and industrial properties, as well as investment in less standard real estate assets such as logistics Information and communications, and various growing areas. In comparison, the range of options available to an Israeli investor in the domestic market is relatively small, both due to bureaucratic barriers to entry and due to initial capital requirements. In addition, there are only a few real estate funds operating in the domestic market.

Improved investment conditions – Israeli investors currently enjoy better and easier means of making investments outside the country. Regulatory information, taxation with detailed and rich information on the state of the market and real estate assets are currently available from a variety of sources, as well as companies and commercial entities, enabling customers to work via online trading platforms – offering customers in Israel a range of professional services that can assist in managing properties in the United States. Many American companies are currently represented in Israel and allow the Israeli investor to invest in properties in the US without any special effort.

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Stability – European real estate markets and the US market are characterized by higher stability, which is manifested at several levels related to investment in real estate. For example, economic stability and consistent growth in the standard of living in Europe and the United States are generating demand for real estate and at the same time rise the value of existing assets, as well as growth of yield. This is combined with the formal stability – streamlined and stable legislation and regulations, enabling long-term planning, contrary to what you can see in the Israeli market, which is undergoing some form of instability due to reforms by the ministry of finance both on legislation and taxation regulation.

Ease and simplicity of work in the real estate market abroad – the stability of markets coupled with a standardized and accessible system that regulates real estate activity – both for entrepreneurs and for investors – significantly shortens the time required to start investing in real estate. Effective planning, transparency in regulations and the absence of bureaucratic restrictions, facilitate work processes, improve yields and reduce risks during real estate projects.

Diversification – The sheer size of international markets provides greater range of options for investing in real estate: The ability to diversify investments between different types of assets, markets with different characteristics and a wide range of companies operating in this market makes it easier for investors to make informed decisions and reduce investment risk. This is the result of the large number of players in the market, offering investors a wide range of business models and methods of operation in the industry – residential investment, individual assets or housing clusters, income producing properties, various types of commercial and industrial properties, and investment in less standard real estate assets such as logistics and communications as well as various agrarian areas.

An opportunity to start with less capital for initial investment than in Israel – The initial capital for investing in real estate in Israel is significantly higher, while investors may start with smaller capital to invest through entrepreneurial companies, real estate funds or to purchase low priced properties abroad. Diversified markets and amount of available assets allow the investors investor with an initial capital of $ 50,000 or $ 100,000, to purchase property and enjoy a long-term yield.

Better conditions for investing abroad – Israeli investors currently enjoy better and easier means of making investments outside of the country – regulatory information, taxation and detailed and rich information on the state of the markets and real estate assets are available from a variety of sources. In addition, companies and commercial entities enable customers to work via online trading platforms and offer customers in Israel a range of professional services that can assist managing assets abroad, provide services and carrying effortlessly out due diligence before buying.

And, of course, higher yields. Israelis who channel capital for overseas real estate investments are given the opportunity to see higher returns than similar investment in Israel. Compared to domestic yields, after taxes and expenses, investment in real estate abroad may yield higher rates of return over time. A similar trend can be discerned in the return on investment in real estate funds that show consistent growth while giving dividends over time, even on relatively low investment amounts.

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