Rent vs Buy in Israel
Compare the projected net wealth of renting and buying over a chosen holding period. The model now includes mortgage amortization, upfront costs, property appreciation, rent growth, maintenance, selling costs, and the return on invested cash.
Known limits: Taxes, vacancies, refinancing, renovation shocks and nonfinancial preferences can materially change the comparison.
Update policy: Material rule changes and corrections are logged on the version-history page.
Fairness convention: both scenarios begin with the same cash. The renter invests the buyer’s down payment and upfront costs. Each month, whichever option has the lower modeled housing cost invests the difference.
Inputs you should verify
Enter a real mortgage quote and your own purchase-tax amount rather than relying on a generic percentage. Purchase-tax eligibility can differ for a sole home, an additional home, a new oleh, a returning resident, and other facts. Property appreciation and investment returns are uncertain.
The model excludes capital-gains tax, rent tax, inflation linkage, renovation shocks, vacancies, tax on investments, mortgage refinancing, transaction timing, and nonfinancial benefits. Results are nominal and illustrative.