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Renting is actually a better deal, financially, in Israel compared to purchasing. Rent is cheaper than the mortgage payment, by hundreds and sometimes thousands of dollars a month, in a society where the average price of housing is more than 14x the average annual salary but most people are highly emotionally compelled to purchase housing as a symbol of stability and wealth creation - an emotional decision instead of a financial one.

As always, local circumstances matter.


We calculated when buying the house near Munich that we pay around 140000€ more than renting our flat forever with moderate rent increase. At the moment of signing we needed bigger apartment. Few years later we see, that despite heavy construction in the old house we will save at least 200000€ as buyers. Rents in German cities are out of control. Probably it’s different in regions with solid real estate supply. Here’s nothing.

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