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Considering moving?

Author: Vered Barel
At a good hour you have decided to upgrade the quality of life, to change the atmosphere. Moving “changes place changes luck” and, in many cases, the current account situation…

Moving involves a lot of mess and headaches, as well as a considerable financial expense. Many people mistakenly think that the most expensive part of moving is transportation, but they do not take into account other implications that such a move has on the budget, both overall and current.

One of the considerations in the decision to move is the desire to reduce living expenses. Rent often accounts for a significant share of monthly expenses, and many people strive to reduce it as much as possible.

It is worth remembering that although rent is a central parameter, it is not the only one that makes up the monthly expenditure for housing. In the decision-making process regarding housing, it is recommended to look at all the parameters, including:

Fixed monthly costs

Have you decided to move from expensive Tel Aviv to Givatayim in order to enjoy a more spacious apartment at a lower rent? Take into account the Arnona rate per square meter (even before calculating the size of the apartment) – Arnona rates in Givatayim, for example, are higher than those in Tel Aviv, and in an annual calculation the difference may add up to a considerable amount. It is important to find out in advance the Arnona rates in the area to which you are considering moving and the cost of Arnona according to the size of the specific apartment. It is possible that after calculating the Arnona price, the rent will look less attractive.

Are you considering renting an apartment in a building with a well-maintained garden? Although the garden creates a pleasant and fresh atmosphere, you will have to pay for shared water consumption and participation in gardening expenses a not symbolic amount at all, beyond the regular house committee fees.

The house committee fees themselves may also come as a surprise – in “modest” buildings, house committee feesusually include basic cleaning, electricity, and maintenance services, and usually do not exceed NIS 70-80 per month. House committees that pay for additional services such as one or more elevators, a shared garbage chute, parking with an electric gate or management, maintenance and guarding services can charge NIS 350 a month or more.

Therefore, do not forget to find out, before signing the contract, how much the house committee fee is.

Periodic costs

Is there a solar water heater in the apartment? How will you heat the apartment in the winter and how will you cool it in the summer? Is there central air conditioning or air conditioner in each room? Is the apartment located on the roof floor? What size is the apartment? Note: All of these parameters affect your electricity spend!

And what about the distance to the workplace? If the distance increases, this will be reflected in an increase in fuel expenses.

These expenses seem marginal and negligible, but in the annual calculation they can be very significant.

Additional expenses expected as a result of the move

Will you need to buy new furniture? Not every apartment comes with a fitted wardrobe and a fully equipped kitchen.

Will it be necessary to transport heavy furniture that cannot be dismantled? Will you refrigerate? Is the old or new apartment located on a high floor with no lift? These figures will increasethe price of transportation by hundreds of shekels or more.

And what about the loss of work days as a result of the move? The total amount can equal monthly rent!

For what range to rent an apartment?

If, after examining all these parameters, you have come to the conclusion that the move is worthwhile for you personally and financially, there is another important question to ask: How long do you plan to live in the apartment? Usually beyond a short period of time simply does not pay off after all the expenses involved in the move itself.

Are you planning to rent an apartment long-term? Keep in mind that sometimes external factors such as the landlord’s decision to sell the apartment, implementation of TAMA 38 in the building or infrastructure work in the neighborhood will lead to the cancellation of the lease, and you will find yourself moving again, with everything involved, including transportation expenses and loss of work days.

Moving to a cheaper apartment is not always more worthwhile. Sometimes it pays more to stay in the expensive apartment, even if the landlord raised the rent at the end of the lease. Remember that the ultimate determinant is the total cost, and what seems cheap at first glance can later cost you dearly.

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