When buying an apartment in Eretz Yisrael, there are a number of considerations that need to be taken into account. While you may have heard that the three rules of real estate are location, location, location, there is really more to it. The buyer needs to know why they are buying the apartment in question. Will this be your home, your investment, or both?
When buying an apartment as an investment, it means that you will be looking at the return on investment, such as a larger appreciation on the property and as a rental. If you are renting out an apartment, close proximity to public transport, recreational and shopping centers will benefit both landlords and tenants. While tenants will find the location convenient, landlords can ask for a higher monthly payment.
If you are planning to live in the apartment, you may choose to live near public transport and be right in the center of things, or perhaps you prefer a bit more peace and quiet. For those looking to live in the apartment they are buying, it is important to choose an area that has a shul and a community that is a good fit.
Blending an Investment with a Home
At the Getter Group, we recently helped three brothers to purchase two apartments together. The brothers were split as to whether the apartments should be investments or potential homes. We found something that was both new, and would appreciate in value, and in a good location. The apartments are located on the edge of a good neighborhood, which makes the current purchase price more reasonable and is also expected to appreciate in value over the years. The apartment is also well located in Eretz Yisrael for when the family wishes to move here.
Shia Getter is the CEO of the Getter Group, a full-range real estate services firm in Jerusalem catering to the Anglo investor. He is a noted expert, columnist, and author of The Guide to Investing in Jerusalem Real Estate. He and his professional team manage many upscale Jerusalem properties and have helped countless people buy, sell, and renovate property in Israel.
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