HOW TO PAY FOR YOUR PROPERTY WITH SHEKELS
So, you want to transfer money from America to Israel. “Easy,” you
think to yourself, “I’ll just phone up my American bank and tell them
where to send the money to! ”Unfortunately, it isn’t that simple. While
transferring money was straightforward in the past, bank regulations
intensified in recent years. It is now more important than ever to be
armed with the right information. Here are four things to consider
before moving your funds for property purchase: The Price in Dollars.
When making a deal, you agree on a price in shekels, but the exchange
rate changes daily. How much will you actually be spending? Should you
transfer it all at once? It is vital to do all necessary calculations before
signing on the dotted line. Payment Logistics. Even if you have the
money to pay for the property, can you make the actual payments?
Different types of payments are required for different kinds of
purchases. For example, when buying a new property on paper, you will
almost certainly need to pay payment vouchers in person at the bank! If
you are purchasing a second-hand property, you may need to present a
bank check in shekels at the signing. Your American bank won’t be able
to give you that. Source of Funds. Due to new regulations, Israeli
banks have become very nosy. Your US bank will likely transfer your
funds to Israel without a hassle, but the Israeli bank might be to accept
them. Israeli banks want to know the source of the funds for all large
transfers. Meaning, they want to know how the capital was earned. Did
the money come from investments you made, the sale of a property, a
gift, or your savings? Depending on the amount of the transfer,
they could ask for anything ranging from a copy of your tax
return, a payslip, or an accountant letter explaining how you
WHEN IS THE BEST TIME TO TRANSFER YOUR FUNDS?
Keeping on top of market trends can give you some insight into the exchange rate fluctuations and may help you get more bang for your buck. But you will also need to consider payment deadlines on your purchase. Banks in Israel can take up to two weeks to clear your funds!
HOW CAN YOU MAKE THE BEST DECISION?
It is a good idea to get professional assistance when converting and transferring your funds. An Israeli licensed money transfer service will help you estimate the cost in dollars, time your transfers, clear your funds quicker than the bank and save you a lot of money by getting you a better exchange rate then you can achieve on your own. Choosing a company whose staff are all English speakers will give you the service you need in your native tongue. They can ensure that you are well versed in all the critical details relating to your purchase.
Daniel Eisenberg is the CCO of IsraTransfer LTD. For the past 11 years IsraTransfer has facilitated more than a billion shekels in transfers. Mr. Eisenberg specializes in complex real estate transactions and loves saving his clients money and helping them actualize their dream of owning property in Israel.
Daniel Eisenberg: +972-58-688-3380