Think you are a millionaire: Invest NIS 200,000 in renovating a rented apartment

Some people have given up on trying to save their own dream home, and have decided to invest a small fortune in renovating a rented apartment - have they cracked the method?

Who is it for and what happens when the contract ends?

Walla!

Home and design

26/02/2022

Saturday, February 26, 2022, 10:31 p.m.

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We all want to live in the dream apartment without compromising, but the cost of living and the rise in housing prices in Israel make it very difficult for many to realize their dream of purchasing their dream home.

Some people understand that in order to realize the dream in the near future they will have to rethink the usual patterns of buying a home and renovating.

And as a first step they rent the apartment of their dreams but do not give up on adapting it to their needs, even when they understand in advance that some of the investment will not go on to their next apartment.

In some cases, these are rented apartments in prestigious neighborhoods, and the tenants do not hesitate to invest hundreds of thousands of shekels in them, and at the same time invest in other channels that in the future may allow them to realize the dream of becoming tenants.

"I am witnessing a trend among young investors, who are at the beginning of their journey, in which they decided to invest hundreds of thousands of shekels in a house that is not theirs, many times these are properties located in luxury neighborhoods or premium properties like penthouses, or large and spacious garden apartments," says designer Michael Ohayon.

"There is a saying that 'money brings money and a house takes money.' There are businessmen who invest their money in various routes in business and do not buy a house. Luxury or penthouse apartments - for a long term of at least 5 years and do not compromise on the design. "

According to Ohayon, it is not necessarily a matter of throwing sand (or rather, money) into the wind: "In the prestigious design, 80 percent of the investment can be transferred to their next apartment, of course, provided that this is possible."

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Will the golden gorilla move to the next apartment as well?

Rented penthouse in Petah Tikva, design: Michael Ohayon (Photo: Idan Gur)

A residential experience that matches the high standard of living of the tenant.

Bedroom in a penthouse in Petah Tikva (Photo: Idan Gur)

"Do not want a gap between outside and inside"

"There is a huge awareness of the world of design. People who rent an apartment, certainly in upscale places, like towers with pools, gyms, gardens, a guard and a luxurious lobby, do not want this contrast between the upscale exterior and their home," Ohayon explains.

"They want the same wealth to penetrate the interior of the house as well. After all, there is no point in living in a magnificent tower, when the interior of the house is uncomfortable and uninviting, or shallow."

"There is no point in living in a magnificent tower, when the interior of the house is uncomfortable and uninviting, or shallow."

Upgraded kitchen and addition of an island (Photo: Idan Gur)

The customer promised himself that in the next five years he would enjoy a house that was exactly tailored to his specific needs. "Rented penthouse in Petah Tikva, design: Michael Ohayon (Photo: Idan Gur)

And Ohayon knows what he's talking about, among his customers there are also those who did just that.

"My client invested NIS 250,000 in a penthouse apartment in Petah Tikva in one of the most prestigious areas in the city and at the same time purchased 3 small apartments in the periphery. In the penthouse apartment he moved to, I furnished and adapted the house, including electrical appliances, accessories Upgraded, adding an island, choosing art details for the house, such as the powerful gorilla statue in a shade of gold, and more. "

"So true, some of the investment went down the drain as soon as the customer moved on to the next apartment, but he assured himself that for the next five years at least he would enjoy the investment and a house that was exactly tailored to his specific needs. Says.

The apartment in Petah Tikva is designed in a style that resembles a hotel suite, with lots of black motifs and provides a living experience that matches the customer's high standard of living.

The tenant is temporary, but the wall is forever.

Black power wall in the living room of a rented apartment in the center (Photo: Idan Gur)

The landlord agreed to participate in part of the cost, provided that the upgrades remain in the apartment even at the end of the contract.

Rented apartment renovated by the tenant, design: Michael Ohayon (Photo: Idan Gur)

The same tenant from Petah Tikva is really not an isolated case, and through him another client came to Ohayon who wanted to renovate an apartment he rented in a luxury neighborhood in the center.

"This is an investor in the capital market who chose to live in a luxury apartment. He too, like his friend, wanted a high standard of living and was willing to invest NIS 200,000 in a renovation."

What was the money about?

Ohayon designed a powerful power wall in the apartment made of MDF painted in matte black, (oil probably will not be able to move on with the tenant to the next apartment) and also furnished and equipped the entire apartment.

"The power wall provides a noble foundation for the house, and of course we took into account that it would stay in the apartment at the end of the lease. The customer agreed with the landlord to make a number of upgrades in exchange for his participation in costs,

The rest of the renovation budget was invested in choosing unique furniture details, prominent art exits, textile items and more.

One of the conditions is that the lighting fixtures will remain in the apartment.

Rented and renovated in the center (Photo: Idan Gur)

Architect Boaz Snir is also no stranger to the concept of projects in the rental market.

Snir was hired to renovate an apartment in Herzliya Pituach, which the tenants rented for a very long period of ten years.

"The investment in the apartment stemmed from the tenants' desire to feel 'at home', when the original apartment was outdated and unpleasant to them," he says.

"To live in the same apartment for 10 years, it must be pleasant."

Rented apartment in Herzliya Pituach designed by architect Boaz Snir (Photo: Omri Amsalem)

Replace flooring, kitchen, interior doors and renovate bathrooms from scratch.

Rented apartment in Herzliya Pituach (Photo: Omri Amsalem)

The customer asked for a new, cozy and spacious kitchen, luxurious bedrooms and fun bathrooms to end the day in.

As part of the renovation, many works were done that are obviously not something they can move at the end of the lease: the flooring in the entire apartment was replaced, the living room was expanded at the expense of the balcony so the public space increased significantly, the kitchen was replaced and bathrooms were renovated from scratch and all innovations and technologies were installed.

On the bedroom floor the flooring was replaced with natural wood parquet and the doors were also replaced with waterproof doors and noise filters.

In addition, we have renewed the lighting throughout the house to modern lighting that spreads a lot of light around and is also energy efficient.

The cost of the renovation amounted to about NIS 200,000.

"There is no doubt that this is a good and accurate choice when the stay in the apartment is long-term," says Snir, "in order to live in a house for more than a decade, you need an apartment that is pleasant to be in."

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