A two-room apartment in Dimona in need of renovation was sold within two hours to an investor from the city.
A two-room apartment with an area of 48 square meters on the fourth floor of a four-story building without an elevator was sold on Modi’in Street in Dimona for 380,000 NIS. The apartment is in poor condition and requires renovation in order to be used as a residence.
The neighborhood: Modi’in Street is located in the Giora Yoseftal neighborhood in the center of Dimona. The buildings in the neighborhood were constructed from the 1960s to the 1980s, and most of them have three or four floors.
The neighborhood attracts the interest of investors from across the country. It is not possible to rent unrenovated apartments in the neighborhood. Renovated three-room apartments rent for approximately 2,400 NIS, and four-room apartments, which are almost nonexistent in the neighborhood, can be rented for 2,500 shekels.
The renovation: The buyer will need to invest approximately 75,000 NIS in the renovation, and after that, it will be possible to rent it for 2,000 to 2,200 NIS per month. In other words, the apartment’s annual yield is 6.3%, based on a monthly rent of 2,000 NIS. The potential of the apartment will only be realized after the renovation, which will include replacing the kitchen, plumbing, and practically everything. The renovation is designed to allow those looking for an apartment in a central location in the city to invest nothing and enter only with their belongings.
The risk: When an apartment requires a complete renovation, it is possible that an investment of 75,000 NIS in the renovation may be an underestimation.
