The slowdown in the sale of luxury apartments means that there are some great properties out there at almost bargain prices.
By AVI SASIRoof top party 311(photo credit: Courtesy)Avi Sasi is the CEO of Housing T.L.V Ltd.Purchasing an apartment above the market price in order to divide it into two units can be a great way to get a great deal. Taking advantage of the slowdown in the sale of luxury apartments is another way to benefit financially.Six months ago, a penthouse in West Rishon Lezion was offered for sale at the price of NIS 6,000,000. This same penthouse is now available for sale at the price of NIS 4,500,000.LocationThe apartment is located on a prestigious, quiet street close to schools and kindergartens in West Rishon Lezion with convenient access roads to main roads. It is a 15 minute drive to/from Tel Aviv with an amazing view of all the Dan Region to the west and north and breathtaking views toward the mountains east and south of Jerusalem.The apartmentSet in the older section of West Rishon Lezion, the 8-room penthouse is 450 square meters with many options for expansion, such as adding another 50 square meters on the roof and making the Duplex into a Triplex (which increases the value of the apartment many times).In addition, there is a private pool on the roof, a billiards room, a luxury designer kitchen, and three covered parking spaces totaling 80 meters. The apartment has been renovated from the ground up to a high architectural level. The price is equivalent to NIS 10,000 per square meter. The price is now below the market price for this prestigious area.Why the price has droppedThe last year has seen a slow down in the sale of luxury apartments. It happened as a result of several developments in the real estate market. The reasons include a drop in the demand for such apartments and the fact that the Bank of Israel has created a new method in providing mortgages which makes taking a large mortgage attached to prime rather difficult.The DealThe price of the penthouse went down and became less expensive in the past six months by over NIS 1,000,000 due to the seller's understanding of the luxury housing market trend and his need for a quick sale of the asset due to his move to another location.Similar penthouses have been sold in recent years at prices higher than NIS 6,000,000 but due to the slowdown in the market there has been a drop in prices. In the past, when this penthouse was first placed on the market at the cost of NIS 6,000,000, the price was consistent with market prices at that time. However, when we at Housing TLV LTD explained to the customer that the market had stabilized and the real price had lowered and that he had to align his asking price with market prices, our client understood the rationale behind the idea.Bottom LineMany other luxury home sellers do not realize that prices have fallen, and their prices are not realistic for the market. The buyer got a great deal because the seller was sensible enough enough to ask for a reasonable price relative to the market.For more information go to www.realestateisraelea.com – The home of premium properties.
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