Buying a property in Herzliya Pituach
The potential clients who come to Herzliya Pituach in order to buy a property there are divided into 3 categories: those who would prefer a new house – “ready to step in with their suitcases”, those who would like to buy an old house for renovation and those who would like to buy a plot and build on it their dream house. There are some who come with a clear and determined idea what they want out of the 3 options and are not going to change their minds. There are others that after studying their original preferred option find out that the picture they see cannot be judged by black and white colors. In this case they do not exclude a consideration of another alternative Out of the 3 options. Those who prefer to buy a plot are sure that they will save a lot of money in the construction process and by not paying the constructor’s profit. Those with the limited budget will prefer the option that seems to be the cheapest one (renovation) without taking into consideration the potential risks. There are those who are too busy and do not feel like wasting their time on something they are not good at so they prefer the option of a finished house.
Let us put forward the positive and negative considerations for each of the options mentioned:
Buying a plot
The main advantage of this option is the possibility to build a tailor made house according the specific needs of the buyers – size, look, inner space allocations, outer space division (garden, pool ) etc.
Let us pay attention to the disadvantages of this option:
- The availability of plots in Herzliya Pituach is considerably poor in comparison with the availability of built houses. This limits the choice of the buyer concerning location, size of plot and negotiation for better price.
- Limitations according town master plan should be carefully checked for each specific plot. Plans for the future house should be examined according the proportions of the plot.
- Limited capability of the buyer to visualize the final results of the building process by looking at the architectural plans may bring some disappointment when the final outcome is finished.
- A tiring building process starting with municipal permits through difficulties of achieving good builders, confronting the subcontractors, fighting the artisans and getting all the final confirmations from the different departments (fire, electricity, sewage etc,)
- Financing expenses should be calculated in the building budget.
- The major expense factor comes from the incapability to plan the building budget. Builder should take into consideration 30%-50% increase of expenses along the building process. If this factor would have been calculated beforehand it could have changed the basic decision as for the other 2 options.
Buying a house for renovation
- The main characteristics of the house that cannot be changed (location of the house on the plot, size of living room, size of master bedroom, directions etc.) are known to the buyers and he may decide whether it suits their requirements.
- Desired important changes to be made can be achieved by consulting an architect prior to the final decision about buying the house.
- Renovation expenses can be estimated much easier than building expenses.
- The cost of the old house included in the price of the entire property will be lower than the cost of building a new skeleton which produces a considerable money saving.
- During the renovation process latent defects can be discovered which may cause additional expenses.
- The expenses for renting a place for the period of the renovation process should be calculated.
- Expenses of controlling and inspecting the renovation process should be taken into consideration.
Buying a new or fully renovated house
- Budget is known with no surprises.
- All characteristics of the house were pre-examined.
- Additional expenses are marginal.
- Occupancy of the house is usually immediate.
- The price includes except the price of the plot and the cost of the building also the financing expenses, the cost of all licenses and the profit of the builder.
- Once the buyer needs to make changes in a new house the deal will be much more expensive since he paid a full price for a new product and gets an incomplete one.
Taking all the a.m. information into consideration shows that the decision on one of the 3 options involves not only a mathematical calculation, but depends on the characters of the buyers, their needs, their readiness to spent time and effort in the process and their financial ability.
It is not obvious that the compromises taken in building a new house are less or none than those of the other 2 options because sometimes there are compromises that are discovered only after living for a certain period in the new house.
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