How To Compromise During
Your Jerusalem Property Search
(These are the thoughts of CapitIL Real Estate Agency Sales Director Ben Levene.)
All around the world, the biggest challenge when trying to purchase real estate, is getting the most out of your money.
You may have a list of conditions that you would like included in your purchase, however, you may have a budget that does not allow for you to tick off everything on your list.
If you cannot stretch your budget and spend a bit more money in order to tick off every box on your list, you will have to choose something to compromise on. For people who are able to stretch their budget, they may decide that it is worth spending that extra money to get everything they want, but for some people that is not an option.
Specifically in Jerusalem, the list tends to go as follows: balcony (preferably sukkah), private parking, an elevator (preferably Shabbat), spacious rooms, and storage.
How will you be able to balance ticking off the list and keeping within your budget?
As a buyer, you have to think about the aim of the apartment. If you are planning to use the apartment for the next 15-50 years, and are not looking at the resale aspect as much, you should take into consideration your lifestyle.
If you will be using the apartment regularly, then a balcony is extremely important. Sukkot is one week a year so that then becomes a choice whether you would like to stretch the budget for a holiday that occurs only once a year.
Those looking for a luxury home, in my opinion, must purchase with a large outdoor area including a sukkah. Having a 2500 SQFT home with a 100 SQFT balcony is a very hard resale.
If you are living in the apartment long term but you are not planning on owning a car, private parking is a factor to seriously consider compromising on.
Of course, having private parking is definitely a perk, and will definitely be important in terms of the resale price, but if you do not have a car and there is seemingly plenty of street parking in the vicinity, then it may be worth it to forgo the parking.
However, if it is an investment that you plan on renting out and eventually selling, then I would be very careful in your consideration regarding the parking.
Having an elevator is an extremely difficult factor to compromise on because even though you may be healthy currently if you plan on owning the apartment through retirement, you never know what will happen.
Accessibility is definitely important, and making sure you could potentially access your apartment even with a wheelchair, a stroller, or if you plan on staying in the apartment as you get older is definitely a must.
People who come from abroad need to be very mindful in terms of downsizing. It is a delicate balance between buying something within your budget that feels spacious enough and buying something that you do not feel comfortable in but is what you can get for your money.
Sometimes, it may be worthwhile to purchase an apartment with fewer bedrooms than you originally wanted in order to have a bigger living space or a larger master bedroom. You do not want to purchase something that you end up wanting to sell in a few years because it is too cramped for you.
If you are moving from abroad, this is a great time to downsize your belongings. However, you may still need that bit of extra space to store things. You can always rent storage space if you end up needing it, the question is how accessible you need your belongings in storage to be.
Everyone’s budget is different and extremely personal.
Only you know what you can afford, so make sure you hire a team that can help you purchase a property within your budget that ticks as many boxes as possible, and advises on whether you should stretch your budget for certain things if at all possible.
Do not put yourself or your family in a position where you cannot afford to keep your Jerusalem home. Try to be as practical as possible and try to make the best decision for yourself.