Investing in real estate is generally considered a profitable and safe investment, and when you look at the graphs, you can see quite clearly that apartment prices in Israel are rising almost non-stop. But in reality, the value of the apartment may also fall below the purchase price. How can you know if this is going to happen? You don't need special predictive powers, but simply look at the situation on the ground and identify in time the signs that indicate a future decrease in the value of your apartment.
When the panoramic view may be replaced by concrete blocks
The view reflected from your apartment is a fairly essential component of the apartment's value. It is possible that on the day you purchased the apartment, you had a breathtaking view from your balcony, and maybe you could even see the sea, but what will happen to this amazing view after a new neighborhood is built in front of you? Sometimes, even one skyscraper in front of your balcony is enough to hide the entire view and force you to remove this component from the equation. When you are considering whether to sell your apartment or not, check the city outline plans to see if a new neighborhood is planned and where, so you can better assess the impact of construction on the value of the apartment.
The calm before the storm
Our quality of life is greatly affected by the quality of the air and the level of noise that accompanies our daily lives. It may be that your neighborhood, for many years, was considered a quiet and peaceful neighborhood, and in the evenings you could open the window, breathe fresh air and hear only the chirping of birds. The construction of a main road or railway tracks in close proximity to the neighborhood or even changing the takeoff and landing routes of a nearby airport can make the chirping of birds a distant memory and lead to a serious damage to the value of the apartment. Usually, paving roads and paths can take months or even years, so you will have enough time to sell the apartment before the value of the apartment begins to decrease.
Time takes its course.
You bought your property in excellent condition, 'new from the bag'. But the years have taken their toll, new cracks have started to appear or perhaps the plumbing has started to cause problems, and in any case, it seems that the maintenance of the property is becoming more expensive, it will cost you more, and eventually the obsolescence of the various systems and the maintenance costs will reduce the value of the property. Especially if it is a property in a condominium, where the maintenance and systems are more complex. Therefore, if you have started to notice the ravages of time on your property, you may want to sell the apartment before the situation gets even worse.
Supply and demand
Low supply and high demand lead to rising apartment prices and vice versa, this is a well-known fact. When demand is high, you can sell the apartment easily and at a good price, but will demand decrease in a year or maybe it will only increase? In the second case, you will come out with a bitter loss. How will you know what the market situation will be in a year or two from now? This task is usually reserved for economists and requires control over various areas such as the state of the stock market, interest rates in the economy and even the mortgage policies of the banks. But even if you are not an economist, you can expand your knowledge, follow forecasts published in economic supplements and consult with experts in order to reach the right decision.
And the neighbors, are they good in your opinion?
The value of your apartment is also derived, among other things, from the socioeconomic situation of the neighborhood. Various social and economic processes can affect the diversity of residents or lead to harm to the socioeconomic status of existing residents. Lack of infrastructure such as kindergartens and schools will alienate young couples and affect the aging of the existing population. If you have noticed that these processes are taking place in your neighborhood, perhaps it is a sign that it is time to sell the apartment.
Any change in the value of your apartment has huge financial implications for you and your family's financial future. Be alert to the processes taking place around you and keep your finger on the pulse at all times, in the end it will pay off for you.
