How well would you have done….

if you purchased a new 4 room apartment in Raanana, in say 2004?

In analyzing a return on a purchase of an apartment in Raanana I will focus on 4 room apartments in a single building, at No. 5 Shvil Ha Zahav, in the East of Raanana.

Based on actual sales prices, buyers purchasing such apartments off-plan in 2004 paid NIS 1,110,000. In 2007 sales were recorded at NIS 1,700,00. Three years later, in 2010, buyers paid NIS 1,880,000 for these apartments. One year later, prices climbed to NIS 2,100,000. The last sale recorded was in January 2013, at NIS 2,200,000.

This represents an almost 100% return on investment in a period of 9 years.

That was the situation till now.

As this building gets older the return will flatten somewhat. Not by much, however. This is a prime location and there is an absolute impossibility of newer product.

The lesson, as always in real estate, is location, location, location.