Monday, February 20, 2017
|Food is a fast growth sector in Israel, here government and business differ in opinion: imports are important|
Sunday, September 14, 2008
A renovated classic Bauhaus building in north Tel Aviv
Tel Aviv is going through an apartment boom phase. Apartments are being renovated, upgraded, divided, and heavily repriced. Rental prices have been going up 20% to 30% for the third year in a row. This means renters who had 2 year contract and need to negotiate are facing a doubling of their rent. Add to this 30% decrease in the value of the dollar to the shekel and rentals in shekels are more than doubling! Is this a crazy - scary situation? Well, not really. Basically landlords are playing "catchup" to the market. There is good news in the rental inflation of Tel Aviv apartments: it is becoming very attractive to renovate and split old apartments. If you are familiar with what happened in the US, UK, and the European Real Estate market a few years ago, than you will understand what is going on here.
I went looking for an apartment in Giv'atayim or Ramat Gan a few weeks ago. After the initial shock that one bedroom, 60 square meter, decent shape apartment is no longer 2,500 shekels a month (or $750), I started "characterizing the market". That's what I do when there is a big change AND a big shock to my sensibility system. But we all get used to changes, specially here when they come fast and strong. I quickly found out that not all landlords are asking for 4,500 shekels for a badly renovated apartment with absolutely no parking in Giv'atayim (this is where I am now). I also found out that for about 3,500 shekels I can have a nicer not newly renovated apartment in a better location. Add another 300 shekels a month and I can have one in Tel Aviv in just as nice of an area. I can finally have parking, or be next to a good shopping center 10 minute walk away... or - or - or - basically have choices and start weighing one vs. another.
If you are looking for an apartment here are a few tips:
- Take a look at a few apartments before you decide what you really need and want
- Take a look in areas where you did not think you can afford two years ago
- Don't be afraid to haggle on EVERYTHING! (I got a reduction in the "security note" (agrat chov).
- Try to be specific with your questions and descriptions specially with brokers and landlords. If you can't be specific describe yourself in their terms: 'I am a picky renter, I need the best deal you see in the neighborhood you cover')
- Keep good communication with your current landlord and keep them informed of your move and your status.
The most important part is not to get depressed or panicky. That happens to just about everyone a few days before they have to sign a new lease or actually "GET OUT". You know yourself better than anyone so just figure out what you need to do not to make a bad decision. If you like having a little fun and have a little spare time, go see really great apartments. You may not be able to afford them but you can still see how "the other half" lives. When I told a realtor that I looked at something I could never afford but it was just a check on what I can get if I had twice the budget he almost threw me out of his office. Than I said that if he didn't have time to show me a few things I would not be able to give him my time either. After all, his job is to show people ~ I need to find a place to live. Once in a while we all need a little diversion, it's a stressful and wasteful task just dealing with Realtors who don't know you and don't know what you want. Quickly he realized that this search is serious for me but I don't want to wear myself down and end up "settling" (le hitpasher) for something that I don't want. Wow did he change his tune! G O O D L U C K (oh, don't be afraid to speak in English but be treated like an Israeli. We hear all the time that English speakers feel like they paid more or didn't haggle enough, this is your opportunity to "practice" being a little more Israeli!) Read More...