[img]96|left|||no_popup[/img] Dateline Jerusalem — I often write about my dump of an Israeli apartment in a building about 35 years old with its inadequate, outdated electric, plumbing and heating. Forgetting the fact that it never has been painted, the door jambs and baseboards look like animals have clawed or chewed their way through. No air conditioner or heater works. This apartment is an absolute embarrassment. As my landlord likes to remind me, this is Israel, not the U.S. Landlords do not have to make repairs for the tenant. I pay rent, homeowner dues, and the landlord's property taxes in addition to utilities. Needless to say, after 4 1/2 years of living like this, I am ready to move.
I want to stay in Rehovot because it is such a great town (a city of 120,000 people), and I have the most wonderful friends living here. I want to be within walking distance of my synagogue, markets, doctors, transportation, post office, butchers, fruit and vegetable shops. That means I want to remain in my neighborhood. My synagogue is across the parking lot of my apartment building. The pharmacy, my doctors and the post office are behind the synagogue. The butcher shop, the fruit and vegetable stores and the closest market are no more than five blocks. Everything is so convenient.
Let’s Talk About Costs
Property values in Israel are sky-high compared to the U.S. My landlord wants to sell this dilapidated apartment of only about 1100 sq. feet for 1,275,00 shekels, $337,000 in U.S. dollars. That might not sound bad compared to some areas in the States. But Israelis make only about one-quarter of what Americans earn, and this is Rehovot, not Tel Aviv, not Jerusalem where an apartment is totally unaffordable. Property is supposed to be inexpensive in Rehovot. Yet after protests this summer with “tent cities” taking over parks throughout the country, because young Israelis cannot afford to buy an apartment, the housing market has hit a standstill. In some areas the prices actually have gone down. Israelis are afraid to buy because they think the market will crash. Sellers are hesitant to put their property up for sale because they cannot recover the money spent on remodeling their apartments.
To buy an apartment in Israel means a 40 percent down payment. Then the buyer must have life insurance to cover the mortgage. In many instances, a friend or relative must guarantee the loan. Although there are foreclosures in Israel, the hefty down payment and loan guarantee protect the banks. Mortgage companies making foreclosures are rare. Yet it makes owning an apartment a challenge for the average Israeli. I write of buying apartments, but there are private homes in Israel, usually called villas. However, the most typical housing in Israel is an apartment in a four-story or high rise apartment building. My apartment building is eight floors (actually nine because the first floor here would be the second floor in the States) high. Buying an apartment is similar to owning a condo or co-op in America.
The good news is that most apartments are not dumps like mine because people own them rather than rent. I have seen some gorgeous renovated apartments in my building with central air and heating, granite kitchen counter tops, large glossy tile floors, built in closets and cabinets, updated electric and plumbing. dishwashers, jacuzzi tubs and amenities considered normal in the States. Until I began looking for another place to live, I had no idea that these beautiful apartments were priced the same as mine. My landlord must be in a dream world if he thinks he can compete with other apartments for sale in the area. No wonder my apartment never has sold.
It is said that a change in residence will bring about a change in a person's luck. It is a about time for a change in mine.
L'hitraot. Shachar.