Ep 50Making Aliyah: The Real Costs of Moving to Israel
Is Israel a good option for retirees? Everybody's moving to Florida.
Yaakov Ehrenkranz
Making Aliyah: The Real Costs of Moving to Israel
with Yaakov Ehrenkranz
It's the difference between being in the stands and being on the field, and it's harder to be on the field sometimes, but it's also much more meaningful.
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Quotes
“People are not coming here to find cheap real estate.”
“Tax is kind of a hidden expense of living here.”
“A good way to make a small fortune in Israel is come with a large fortune.”
“It's not without sacrifice, but it is with reward.”
“For me, it's not as much a financial decision as much as it is an emotional decision.”
Takeaways
- 1 Yaakov Ehrenkranz grew up in Memphis, studied economics at YU, and moved to Beit Shemesh in 2014. He now does financial planning for olim.
- 2 Aliyah is rising, including among more yeshivish families. Popular places for Americans include Jerusalem, Beit Shemesh, Modi'in and Raanana; programs push the north and south.
- 3 Housing and cars cost more in Israel. Prices 'almost never go down,' detached homes are rare and costly, and most families get by with one car.
- 4 Tuition and healthcare cost much less: school can be a few hundred shekels a month, and basic health coverage through a kupat cholim is cheap, though supplemental insurance is wise.
- 5 Taxes are the hidden cost. Rates climb faster than in the US, so a family earning around $100,000 can already face 25-35% on added income.
- 6 Renting is cheap relative to home values. That also means buying to rent out rarely brings much income.
- 7 An American remote salary helps a lot, but jobs tied to US clients may mean working until midnight, and income in dollars carries currency risk.
- 8 Common mistakes: overbuying a home, not understanding variable mortgages, and ignoring pension fees and investment choices.
- 9 Very few families go back. Those who do usually leave because a child didn't adjust, they missed family, or money got tight. Remote work has made staying easier.
- 10 The emotional cost is real: grandparents far away, aging parents needing care, cousins who've only met on FaceTime.
- 11 Safety comes up, but he feels it's less of a reason not to come now, since no place is free of attacks. Most people don't walk around afraid.
- 12 Day-to-day tradeoffs include weaker customer service, no Costco and slower online shopping, smaller homes, and more parent effort in schooling.