To Buy or To Rent?
For many years, we have helped clients at all stages of life to find a great home in Jerusalem.
In our first chat, we sit to discuss their expectations and needs; what kind of apartment do they want? What areas interest them? What amenities do they require?
Then, based on our discussion, we advise whether we think it would be in their best interest to rent or buy their home. This suggestion is very unique to each individual client and their situation; there is no one-size-fits-all answer.
Let’s look at some reasons why buying or renting would be a good choice:
Reasons for Buying
The best reason to buy a home is because you will own a piece of real estate in Jerusalem. Jerusalem is considered to be the holiest city in the world by most, therefore, it will always hold high value and sanctity. It is a wondrous place to live, or for your family to have a shared home to come together during holidays or special occasions.
Moreover, real estate in Jerusalem is finite. Yes, construction is seemingly everlasting, but the city limits will not expand. The opportunity to own your own piece of land in the holiest city in the world is tremendous.
Secondly, buying a home means that it’s yours. No one can take it away from you. You can do with it as you please, from renovating and remodeling, to furnishings, etcetera, without worrying about a landlord’s approval. This also provides you with the opportunity to pass it on to future generations, and saves you the hassle of needing to move every year or so, which is quite difficult to do in general, but especially with young children or at an older age.
Another reason to buy a home is that it is a fantastic investment opportunity. Not only can you generate an income on your home while still owning it, but should you decide to one day sell it, it is highly likely that its value will increase with time and provide you with more money than what you had originally invested.
Finally, the emotional component to owning a home in Israel as a Jewish person is very meaningful and indicative of the strength we have as a nation to overcome all persecution we have faced throughout our history.
Reasons for Renting
One of the main reasons that we see clients choosing to rent is for flexibility. Renting offers a sort of freedom that allows you to move every year or so to a home that is better suited to your needs, or to explore different neighborhoods and cities.
Another reason that makes renting attractive is that there are no significant fees associated with it, such as purchase tax, closing costs, mortgages, etcetera. If you found the apartment through an agent, you will have to pay an agent’s fee, as well as monthly Arnona and utility bills, but that’s it!
Additionally, there are no maintenance costs or repair bills to worry about. If your water heater breaks, or there is a leak from your upstairs neighbor’s bathroom, your landlord is responsible for fixing the damages.
Finally, renting is a much easier choice. Renting can allow some people to afford to live in a better apartment or neighborhood than they could buy. It will cost roughly $60,000 dollars a year to rent a luxury apartment in Baka versus 4-6 million dollars to purchase it.
Life Circumstances and Personal Preferences
Ultimately, the decision of renting or buying comes down to life circumstances and personal preferences. It is important to weigh the pros and cons of each option and think about how both your short and long-term future would be affected by your choice.