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Looking for an apartment?

Maybe even renting is the solution

In an age of boiling and raging market, is buying an apartment still the most affordable option?

Or maybe a long-term lease will give a better answer to our money?

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Walla!

Real Estate

Monday, 29 November 2021, 14:38

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The market is boiling, people are looking to buy apartments, but the supply is low and the little that goes on the market has been snatched away.

Is it worth compromising on any apartment that goes on the market just to own the property, or is it time to wait to rent in the meantime to find the perfect apartment later on?

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To the full article

How can you design such an apartment for rent?

Boaz Snir Architecture (Photo: Ran Arda)

Architect Boaz Snir (Photo: Valery Zioz)

"If there is money to buy an apartment, why rent?" Architect Boaz Snir asks, "If a person has the financing to buy an apartment I recommend buying, the real estate market is just climbing up and I see no reason for the market to go down or even stabilize. Falling prices in the real estate market will only happen in an extreme act, God forbid a national disaster like an earthquake or an event in a bad direction on the Iranian front. Despite these two reasons, as long as they do not happen, I expect the real estate market will only climb. In order to try to save a little anyway, I suggest buying an apartment on paper and not in an existing building whose prices are very high. "

Will the rental market be the news?" What needs to be done is a change in the licensing and construction process that will be faster and more efficient. In this way, they will be able to release more apartments to the market in a shorter time. "

This can actually be done for rent, but it is better to buy.

Interior Design The Gens Foundation (Photo: Assaf Pinchuk)

Gens Foundation (Photo: Natalie Schur)

Interior designer Keren Gens: "An apartment is becoming more and more unattainable, it is true that sometimes there are investments that can yield more, but if you look at the annual return on real estate - the situation is very similar.

Buying an apartment is a long-term investment, which in 10 years can be unattainable.

To me unequivocally, if you have the ability to buy, it's time to buy an apartment, both in terms of yield and mortgages today are very convenient.

The long-term housing market here in the country is very underdeveloped.

It is difficult to find an apartment for 10 years, in the end something will happen and you will be taken out of the apartment.

In addition, if in the future you want to upgrade to a larger house, it will be much more difficult when the starting point is rent, once you have an apartment, even if it is small (which by the way yields are greater) you are already in the market, your next apartment is more achievable. "

When will this change?

"If there is a drop in prices in the demand areas, the answer will be different," says Gens, "if there were more jobs in the periphery and the supply in the central area would increase. It is true that it is nice to buy an apartment in Ofakim, but accessibility, transportation and employment are very problematic."

If the market is at its peak, it might be worth the wait (Photo: Reuven Castro)

Eyal Apel (Photo: Shirad Nissim)

Buying an apartment seems like the only answer, but not necessarily.

Architect Eyal Apple believes: "It's time to wait and not jump on every apartment that goes on the market. The market is very high, much higher than it should be and the government is going to take some steps to stop the rise and even lower prices. The situation reached the market today, with high prices Too much especially in the demand areas, the urgent shopping and the onslaught on the apartments make the situation dizzy, and it is enough that there will soon be a stop here because of such a different variant and this whole bubble will burst. So, basically, To wait for rent. "

Apple notes that "apartment marketers and debaters are also dizzying the market. There are not enough apartments, which means they do not have much work, so they promise those who agree to sell unrealistic prices. The market behaves like a herd, has no shepherd so it is worth the wait."

Long-term rental - today it is a preferred option

Nir Shmol (Photo: Tomer Feder)

"Many real estate investors prefer to rent an apartment and on the other hand invest their money in an investment apartment," says Snir Nir Shmol, CEO of the company.

In many cases there is an opportunity for an investment that seems unusual to us, such as a property intended for urban renewal, an investment in an apartment overseas, buying an apartment at a price that is below the market price, an apartment in an area that has a high demand for rent, etc.

"At the same time renting an apartment in a residential area where we want to live when in the same area we can not buy an apartment, in light of the high apartment prices or alternatively we do not have the desire to purchase the property in light of various considerations."

Opposite specification: "Often the rental price reflects a real estate opportunity versus the alternative of buying an apartment - that is, if the price of the apartment is very high versus the relatively low rent, one can find a real estate opportunity in renting the property versus the option to buy it. In some areas when the cost of buying a home is very high compared to the usual rent in that area and reflects a low return to the property owner. In such a case the real estate alternative in buying the property makes no economic sense.

And what about long-term rentals?

"Today, with the development of the long-term rental market and the entry of many funds and real estate companies into the long-term rental sector in Israel, similar to the American model, tenants can rent a long-term property without fear of the property owner increasing the rent each year. From the apartment in any whim he may have.

The problem is that this process is sometimes accompanied by the need for new educational frameworks for children, the change of distance to work and a very great difficulty in stability for tenants.

The change in the field of long-term leases should create a revolution in the coming years in the rental market in Israel and adapt it to what is accepted in the world. "

Design Adi Erel, graduate of the Barbara Berzin School of Design (Photo: Itai Banit)

Barbara Berzin (Photo: Guy Hecht)

If you still decide to go for a rented apartment, how will you design it in the reality test?

Barbara Berzin, owner of the Barbara Berzin Interior Design School, replies: "A guaranteed long-term lease is considered a dream, and it is no wonder that many refrain from investing and creating inviting space for fear that in a year or two the investment will go down the drain. The answer is somewhere in the middle: most of us will not invest in a rented apartment the same resources we would have invested in our own home, and yet, we would like to live in a place that feels like home. First of all, if you have chosen to buy furniture for the apartment, it is recommended to consciously choose the ones that will be easy to move and transfer to the next apartment as well. It is important to remember that each apartment has its own structure, so it is important to choose furniture in standard sizes and with a relatively classic look that will suit any situation.

"Homeowners naturally demand to return the property without holes in the walls, so when investing in items such as a towel rack, soap dispenser, or toilet paper dispenser it is important to choose ones that attach to the wall by gluing and not drilling. For the sake of hanging pictures. Another way to bring character into the space by art is to place one large and impressive picture on the floor or use relatively small pictures in a frame with a back leg and put them on existing shelves, TV cabinet, bedside and so on. "

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