The greatest real estate boom has centered on and around Jerusalem. Construction is primarily of apartment complexes, such as Har Choma, which continues at a frenzied pace. As there is a paucity of villas in Jerusalem, villas have become so disproportionately expensive that those in a position to afford a large house, but who have business dealings in Jerusalem or Tel Aviv will eventually maintain an apartment in the city and a villa in the suburbs.
These new reasonably priced homes with spacious indoor and outdoor facilities will be more in demand as the central cities become more congested and the villas in the areas close to major cities become scarce.
Israel has a limited supply of land and is now pressured to immediately decide which areas they will annex and which areas they will give to the Palestinians. In their latest offer of 90% of Yehuda and Shomron to the Palestinians, our area is well within the portion expected to be annexed.
As the supply of available land is fixed and its security becomes intact the value of those properties within the annexed areas will increase sharply.
Small town flavor fosters close satisfying interpersonal relationships
Religious and spiritual growth nurtured by a Godol Hador
Educational services superior to that within the cities
Centralized, convenient access to Jerusalem, Tel Aviv, and Netanya
Moderate weather conditions, scenic, unpolluted
Estates with large houses is the suburbia of the future.
Real estate prices will escalate yielding greater profits to those who initially invest here
Limiting Exposure to Risk
There is always the possibility, even after a negotiated peace agreement, that subsequent conflicts will result in a renegotiated peace agreement. How can the investor be protected? There are a number of options:
1. Insurance exists that will insure property from loss as a result of nationalization or political changes.
2. An escrow sale where monthly payments are made for the use and occupancy, with the deed held in escrow until the full purchase price is paid, either by payment for the term of the mortgage or by prepayment before the expiration of the term.
3. A limited partnership where the seller remains the general partner who assumes the risk of loss should the property become transferred to Palestinian control. The limited partner makes monthly payments and obtains full ownership by the end of the term or by prepayment of the full purchase price.
