Buying Property in Israel from New Jersey
Buying Property in Israel from New Jersey
New Jersey has some of the most connected Jewish communities in the United States. Teaneck, Bergenfield, Englewood, Fair Lawn, Passaic, West Orange, Livingston, Highland Park, Edison, Lakewood and the Deal area all send families to Israel every year, whether for a future aliyah, a place near children studying there, or a long-term investment. Buying in Israel works very differently from closing on a house in Bergen County, however. There is no title insurance culture, the buyer usually hires their own lawyer from day one, and much of the market is apartments rather than detached homes. This guide explains how the process works for a New Jersey buyer and where the common surprises are.
Where New Jersey Buyers Tend to Look
Many Bergen County families already have a network in Jerusalem, especially in neighborhoods such as Baka, the German Colony, Katamon, Arnona and Talbiya, where English is heard on the street and synagogues feel familiar. Others choose Modiin or Beit Shemesh for more space and a suburban rhythm that resembles Teaneck or Highland Park.
Buyers from Livingston, West Orange and Short Hills often look at Raanana, Hod Hasharon and Herzliya, where the pace is closer to a New Jersey suburb and commuting to Tel Aviv jobs is realistic. Shore families from Deal often prefer Netanya or Herzliya Pituach.
How an Israeli Purchase Actually Works
In Israel, the buyer and seller each hire a lawyer, negotiate a detailed contract and sign it before most of the money moves. The buyer lawyer checks the Land Registry extract (the Tabu), the municipality, building permits, liens and any planning issues, and then registers a caution note that protects the buyer until final registration.
Choose an Israeli real estate lawyer before you make an offer
Ask for the Tabu extract or the relevant registry record early
Expect payments in installments according to the contract
Plan for purchase tax, which is assessed on the buyer, and ask your advisor how it applies to you
Managing the Process from New Jersey
Israel is usually seven hours ahead of the East Coast, which is manageable. A Teaneck buyer can review documents in the morning while the Israeli team finishes its day, and calls in the early afternoon Israel time fit before the New Jersey workday starts. Nonstop flights from Newark and JFK make it realistic to visit for the key viewings and the signing.
A limited power of attorney signed at an Israeli consulate lets your lawyer complete some steps without you.
Financing and Money Transfers
Israeli banks do lend to foreign residents, but the terms, required down payment and documentation are different from a New Jersey mortgage, and they change over time. Some buyers use funds from a US home equity line instead. Either way, wire transfers need to be planned so that each installment arrives on schedule.
Currency movements between the dollar and the shekel can change the effective cost of each payment, so speak with your bank about how and when to convert.
Tax and Reporting Questions for Americans
Americans are taxed by the United States on worldwide income, and Israeli property can create reporting duties in both countries, including foreign account and asset reporting in the US. Purchase tax in Israel depends on whether you are an Israeli resident, a new immigrant or a foreign resident and on whether this is your only home.
Before signing, speak with an Israeli tax advisor and a US CPA familiar with Israel. We coordinate with those professionals but do not give tax advice.
Avoiding the Most Common Mistakes
Assuming an American style inspection contingency exists by default
Paying a deposit before your own lawyer reviews the documents
Ignoring building rights, balconies or additions that are not properly permitted
Buying in a neighborhood you only saw once on a short trip
Frequently asked questions
Can a New Jersey resident buy property in Israel without Israeli citizenship
Yes. Foreign residents can generally buy apartments and houses in Israel. Some restrictions apply to certain land types, so your Israeli lawyer should confirm the status of the specific property.
Do I need to be in Israel to sign
Not always. Many buyers sign a power of attorney so their lawyer can complete steps remotely, although most people prefer to see the property in person before committing.
Which areas are popular with Bergen County families
Jerusalem neighborhoods such as Baka, Katamon and the German Colony, as well as Modiin, Beit Shemesh and Raanana, are frequent choices because of their English-speaking communities.
Should I speak with a US CPA before buying
Yes. Owning property abroad can create US reporting and tax questions, so it is wise to involve a CPA familiar with Israel along with an Israeli tax advisor.
Elkayam Group
Elkayam Group, known formally as Kobi Elkayam Real Estate Ltd, works from Rival Street 37 in Tel Aviv and draws on a family background that goes back to 1945 across three generations. The team works in Hebrew, English and French, which makes the conversation with New Jersey buyers straightforward, and it is active in development, urban renewal and complex deals with backing companies and partners.
Planning a purchase from New Jersey. Book a call with our English-speaking team to map out your first steps.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv