Many vacation and summer homes in Israel are located in cities with attractive qualities that draw vacationers for weeks and even months each year. In many cases, you will find Israeli and foreign citizens who keep a summer home – especially in Netanya. Netanya is a coastal city that wisely maintained its Mediterranean characteristics while developing wonderfully as a tourist destination.
Netanya's enormous advantage over any other city in Israel is that it was planned as a resort town from the beginning and has been one ever since. This is still evident today, meaning that Netanya's culture of hospitality and tourism and vacation infrastructure are based on a tradition of many years. The many investors who choose to invest in the city's hotels or vacation apartments know this, which is the reason so many people choose to buy a summer apartment in Netanya.
A wide range of summer apartments in Netanya
Netanya is a colorful city built by many different immigration waves, but the immigrants it is best known for are those from Francophone countries, who made the city the center of their community in Israel. Here you will find a very large community of French speakers, who first came to the city because it is a city of eternal sunlight, just as they love. In addition, its proximity to all key and central locations in Israel – such as Tel Aviv, Herzliya and Haifa, and even the convenience of traveling to Jerusalem – makes it highly attractive to buyers of summer apartments. Construction projects, which were at first offered at advantageous prices that did not yet reflect the full value these properties could achieve, had smart investors looking to buy summer apartments in Netanya, in constantly increasing numbers.
Naturally, this fact attracted more and more members of this community and others, reinforcing hostelry and tourism in the city, and making it into a short-term tourist attraction for tourists from around the world. At present, many apartments in Netanya are populated mainly in the summer months, by Jewish families who come here to spend part of the year in their own regular summer apartments.
Summer apartments in apartment hotels
Another option for a summer apartment in Netanya is to purchase a vacation home in special-purpose projects, which are subject to the definitions of Israeli law regarding such buildings. Vacation homes in a special-purpose project are apartments that are fully owned by the buyers and that are used not only for their own vacations but also to generate a continuous return throughout the year. This makes them highly attractive to investors, especially foreign ones. A summer apartment in Netanya, bought in such a project – which you may find in Netanya as well as in Herzliya and Tel Aviv – is an apartment in a building that functions for all intents and purposes as an apartment hotel, with a management company managing the building and the property and offering concierge and other services to tenants. Of course, the building also includes hotel facilities for tenants, who can reside there for at least three to six months a year, subject to regulations and terms and pursuant to the law. In other days of the year, the apartment is leased to other vacationers, so that it generates a return to its buyers.
Legal advice for buying a year-round maintained vacation home
A transaction to purchase a summer apartment in Netanya requires close legal consultation, since foreign buyers are not necessarily familiar with Israel's real estate laws. In this case, for example, there are certain restrictions on the use of the apartment for the purposes of its owner's family vacation, with limitations regarding the days and periods of staying in the apartment. In addition, the apartment, which is a hotel unit for all intents and purposes, is in fact managed by a management company, so that it is necessary to supervise, pursuant to the contract, the commissions and payments collected or transferred to the apartment's owners. It is also recommended that you know who maintains the apartment and the types of insurance policies each hotel unit owner must keep. This investment is highly profitable, according to data collected over recent years, however the required process of inspection and negotiation must be conducted responsibly and professionally by experienced lawyers who specialize in this particular field of law.
The Island Hotel and Lagoon Hotel in Netanya are examples of hotels built in this approach in recent years, and are also examples of how you can buy a summer apartment in Netanya in a transaction that will yield additional returns to all parties. Another crucial reason that you should seek legal consultation when preparing the contract is that each hotel calculates the consideration to apartment owners differently, so that only an experienced lawyer can inspect the matter and inform the buyers, as well as calculate the consideration and see what is the best option for the customer. The consideration may be calculated by the duration of the stay or by the relative share out of the project's revenues, which is something you should know before signing the contract.
Eli Shimony - Israeli law firm representing clients on all civil/commercial legal issues in Israel. For any questions please contact us and we will be happy to assist.
Email: [email protected], Tel: +972-52-2769773, +972-3-5507155.
The above article is a general information only and it is not intended to replace a legal advice.