Subscribe to Print Edition | Tue., October 31, 2006 Cheshvan 9, 5767 | | Israel Time: 02:33 (EST+6)
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A summer home now, a permanent place tomorrow
By Arik Mirovsky

Many people dream of buying a vacation home in Tuscany or Provence, where they can escape to on weekends or on hot summer days, to wander between the vineyards during the day, buy fresh bread and cheese from the local farmers and sit in front of a fire in the evening, with a glass of fine brandy. The problem is that this is quite an expensive dream. Still, quite a few upper middle-class families from the center of the country have found a no less enchanting solution much closer to home - a home in the Galilee.

Realtors in the north are reporting what appears to be the beginning of a new fashion among established residents from Israel's central region. A few deals transacted recently illustrate this developing trend: a resident of Herzliya bought a few lots in the Nof Kinneret neighborhood of Safed and built a luxury villa on them; a couple from Savyon purchased a house in the Bneh Beitcha private development neighborhood of Hatzor Haglilit, invested hundreds of thousands of dollars refurbishing it and turned it into their second home; a resident of Jerusalem bought a house with adjoining land on Moshav Sde Eliezer, beside Hatzor Haglilit; and a few residents from the center of the country have purchased lots on Moshav Hosen, near Ma'alot.

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Still, this is not a completely new phenomenon, but rather a series of isolated, somewhat intriguing deals, that have recently increased to a few dozen a year. The transition to a trend is based on the change in the approach taken by realtors and agents with respect to demand from types of buyers who until now had not taken an interest in the north.

"Whereas in the past, there was no investment in the advertisement of moshav expansion plans in the national press," relates one real estate marketer, "now one can find notices about properties in the north in all the newspapers. We realized that we have a target market in the center, too."

A recent example: about two weeks ago, Yuval Alon Construction and the Karpis Group began marketing 46 lots measuring 280-500 square meters (3,000-5,400 square feet) for independent development in an expansion neighborhood of Moshav Hosen, for $25,000-$37,000. At least 75 families registered for the raffling of the lots, undeterred by the war and the many Katyusha rockets that fell in this area.

Last week, when the lucky families were chosen, it turned out that 16 of the lots were being purchased by residents of the center, and three by residents of the south.

"Not all the buyers plan to build their second home here," explains marketing manager Eyal Pinian. "Some are actually planning on moving to the north, although recently there has been increased interest by residents from the center of the country in properties for use as vacation homes."

Rustic vacation

Who are the people seeking a second home in the Galilee? Their socio-economic status is clear: they come from the upper decile of the population, but not necessarily from the upper hundredth or thousandth. Most of them are aged 40-60, educated, with jobs in senior positions, who are interested in a change of scenery.

"The upper thousandth [of the population] is not interested in property in the Galilee," says Pinian. "Most properties are too small for them and the area does not offer enough. Such people prefer to buy luxury villas abroad. The upper middle-class, on the other hand, views the Galilee as a viable option for purchasing a dream house with a rustic atmosphere, almost like Europe." There is no doubt that the similarity between the mountain vistas and the wide swaths of green, particularly in the Upper Galilee, to rural parts of Europe, attracted buyers to this region.

Avi Ben Porat, of Homeland Lev Hagalil, says that residents of the center are looking for two types of properties: a spacious house like they have in the center, to which they could move in the future and which they could make their main residence; and inexpensive apartments the family can use on vacations.

A perfect example of the first type is in the Nof Kinneret neighborhood of Safed. This neighborhood is cut off from the city and faces the Hula Valley and Rosh Pina, with breathtaking views of Lake Kinneret, the valley, the Golan Heights and Mt. Hermon, but for various reasons it is not favored by the locals.

The owners of a jewelry factory in Herzliya decided to build their second home in Nof Kinneret. They bought 6 lots with a total area of 4.5 dunams (1.25 acres) and built a three-story home with a built-up area of 1,000 square meters, giving them one of the most luxurious properties in the north. About three years ago the property went up for sale, but its price tag - $2.5 million - did not attract much interest. The owner recently decided to take the house off the market, and moved in himself.

Although this was an enormous investment in a property, the view of Lake Kinneret has captured the hearts of many residents of the center, who have purchased building plots and apartments.

"The excellent location of this neighborhood, overlooking the lake and Rosh Pina, does the trick, in addition to the low price of the lots, which start at $30,000 for 375 square meters, for half a duplex," says Roi Sofer, of Sofer Realty in Safed.

Sofer notes that recently a resident of the center bought a villa in the new neighborhood of adjacent Rosh Pina, on a 500-square-meter lot, for $265,000. "I figure that eventually, he will move here to live," says Sofer. "One doesn't invest so much money in a house to use it only a few days a year."

Many buyers of luxury properties in the Galilee indeed plan to use them for more than a vacation or second home. The couple from Savyon, for example, who bought the house in Hatzor Haglilit and invested hundreds of thousands of dollars in it, added 100 square meters of living space so that the wife, who is a professional artist, can paint in the serene atmosphere of this region.

One buyer of a property in a nearby locale related that he was interested in building a boutique cheese factory, while another is considering opening a small restaurant when he retires from his business in the center of the country.

"They are planning a big change in the latter stage of their lives by buying a property in the Galilee," says Sofer.

Another example is the Jerusalemite who bought a house on 3.5 dunams of land plus 25 dunams of agricultural property on Moshav Sde Eliezer, for a total of $390,000. He is not interested in farming and has leased the farmland, but loves to host his family on the moshav during vacations, and is considering moving there permanently.

Mt. Canaan in Safed is another popular place for residents of the center who are looking for a property that could serve as their permanent home in the future, thanks mainly to the elevation and the view. Sofer says that private homes on 400-500 square meters of land can cost as much as $350,000, depending on the location and the maintenance quality of the buildings.

"These people have the money," says Pinian, "the economic security and dreams they still want to fulfill, and the Galilee is a path to such dreams."

It is not always possible to buy a vacation home or future residence on a kibbutz or moshav, as the committees that approve new residents do not want their expansion neighborhoods to be ghost neighborhoods.

Two to three days

"Even so, they want to market projects, and ask applicants if they are planning to live in their new homes, without asking too many details," explains one realtor. "There are already some homes on kibbutzim such as Kfar Blum, Kfar Szold and Sde Nehemia, whose buyers live there 2 or 3 days a week, spending the rest of the time in the center."

The failure of several special campaigns to attract more residents to the Galilee, including the campaign this past year, further highlights the trend toward buying vacation homes, even if it is still a trickle. The various incentives offered during the campaigns, even if they were not fully applicable to vacation home buyers, increase the feasibility of such purchases.

Another group of buyers are those who want to buy a vacation home in the Galilee in order to save money on guest house or hotel costs. These buyers take advantage of low apartment prices in Safed, Ma'alot and Hatzor Haglilit, and buy 2- or 4-room apartments for $40,000-$70,000. These apartments are then lightly renovated and used during vacations.

Local realtors believe this trend is just beginning.

"The first signs are evident," says Pinian, "but there is no great momentum yet."

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