How It Started

Evgeny immigrated to Israel from Russia in 1999 as a child. His family rented while all his friends seemed to live in homes their families owned. That gap stayed with him. By the time he was in university, he had already decided he wanted to buy an investment property.

In 2015, with NIS 100,000 in savings, some help from his grandfather and a loan from his parents, he bought his first apartment in Netanya’s Naot Shaked neighborhood for NIS 880,000. It was a three room apartment in an older building, near a park, in an area earmarked for urban renewal. Thanks to the low interest rates at the time, the rental income slightly exceeded his monthly mortgage payment.

Darina, who was his friend at the time, watched the whole process from the sidelines. “I thought wow, how is he doing this?” she recalls. A few years later, just before they got married in 2018, she bought her own three room apartment two minutes away from Evgeny’s for NIS 980,000. The timing was deliberate. They had taken tax advice and knew that purchasing after the wedding would trigger higher purchase taxes on a second property.

Building the Portfolio

Two years later came apartment number three. By then the couple had steady incomes, were saving consistently and had deepened their financial knowledge through books, podcasts and an investment mentor. They found a three room apartment in Kiryat Ata for NIS 532,000, below market value, and bought it with NIS 300,000 in equity pulled from savings, investments and family.

Last year, with Darina pregnant again, they added a fourth. A spacious 100 square meter apartment in central Netanya on Sderot Binyamin, purchased for NIS 1.85 million and currently rented out for NIS 4,800 per month.

The Decision Not to Buy Their Own Home

The question people ask most is obvious. Why do they still rent? With four investment properties, why not buy a home to live in?

“It is a painful topic at home,” Darina says honestly. “I have a strong desire to have our own place, designed exactly the way we want it. But when we lay out all the numbers, it is simply not the right financial decision right now.”

The tax implications of owning four investment properties make purchasing a primary residence significantly more expensive. For now they have chosen to stay renters and keep building the portfolio.

Their next move is not another apartment. They are considering purchasing two plots of agricultural land that are expected to be rezoned for residential use, which would significantly increase their value over time. “When you compare it to urban renewal timelines,” Darina says, “suddenly it does not feel like such a long wait.”

What They Learned Along the Way

After years of buying apartments with urban renewal potential, both in Netanya still have not seen a single brick moved. Their advice to others considering the same strategy is direct: do not pay above market value for urban renewal promises. These processes can take 15 to 20 years. Check whether there is an actual developer involved, whether residents have signed agreements and whether the local planning committee is on board. If all three are not in place, it is just words.