Apartments for sale in Haifa for investment purposes.
There is no disputing that in Haifa, which led in the decline of apartment prices throughout the last decade, there has been a revival in recent times. The trend of diverting funds from the banks towards financing the purchase of apartments for the purpose of investment intersects at a point in time, in which bank returns from savings programs of various kinds have fallen below 4% per year. The population of savers began to withdraw funds from the bank's savings and investment programs, in order to purchase an apartment for rent in Haifa.
The buyers of the apartments for the purpose of investment started their shopping spree in the Neve Shanan neighborhood, which abuts the Technion and is a few minutes' drive from the University of Haifa. Ramot Ramez, which is a sub-neighborhood in Neve Shanan, was the first target of those investors. Ramot Ramez has been for years a favorite destination for students who need an apartment for rent in Haifa due to the short distance to the Technion and the university, small and modest apartments at a reasonable price immersed in the green and pastoral Mount Carmel forest and close to commercial centers and regular transportation to all parts of the city.
A number of neighborhoods in Haifa that have academic institutions or are located near them, enjoyed the highest increase and it can be seen that the increase in prices spread like a wave from the streets near and close to these educational institutions and beyond. Those of the investors who bought investment apartments in Haifa only about two years ago, found that their apartment is worth 35-50 percent more today.
In 2007, apartment prices in Ramot Ramez were in the price range of $75,000-85,000 for apartments with 2.5-3 rooms and an area of 50-70 square meters. In 2009, deals were closed for the sale of apartments in Haifa in the same area in the price range of 450,000 - 520,000 NIS.
Some of the apartment owners who bought these apartments at low prices in the past, began to sell while realizing handsome profits in order to repurchase apartments for investment in areas further away from the Technion, in order to anticipate price increases in these areas, thinking that for the price of one renovated 3-room apartment costing NIS 500,000 that yields a rent of NIS 2,300 , they can purchase 2 renovated apartments costing 230,000 NIS which are rented for 1500-1700 NIS each.
When I am asked about the future of the investment apartment market in Haifa, the price trend of investment apartments in Haifa and rental prices, I can direct them to examine the banks' interest rates for the various savings plans. As long as the bank's interest rate is at its lowest, the rental apartment market as an investment channel will serve as a preferred destination for those who wish to preserve the value of their money. Beyond that, many recently see the apartment market for sale in Haifa as an alternative destination for pension plans. We also receive monthly
The rent and also the apartment is used as a deposit which can be redeemed when needed.
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