How Much Income Needed for a Home in Petah Tikva?

Purchasing a four-room apartment in Petah Tikva, Israel's fourth-largest city, requires a net monthly income of approximately 15,500 to 23,500 shekels, depending on the neighborhood and apartment features. A typical 86-square-meter, four-room apartment in older city areas without an elevator sells for around 2.3 million shekels, while a second-hand average is about 2.45 million shekels. New apartments from developers are priced higher, averaging 2.88 million shekels.

In newer neighborhoods like "Ha'Moshava Ha'Hadasha," the median price for a four-room apartment is 2.78 million shekels, rising to 2.93 million in "Neve Gan" and 3.27 to 3.3 million shekels in "Kfar Ganim Gimel." A well-equipped apartment with an elevator, parking, and a safe room typically costs between 2.6 and 3 million shekels. Monthly mortgage payments for a 2.6 to 3 million shekel apartment, with a 30% down payment and a 25-year loan, range from 6,200 to 7,100 shekels. This is slightly higher than the city's average rent of 6,500 shekels.

To afford these mortgage payments, assuming they constitute 40% of income, a net monthly income of 15,500 to 18,000 shekels is needed. If the mortgage is 35% of income, the required income increases to 18,000 to 20,000 shekels, and for a 30% ratio, it's 20,500 to 23,500 shekels. A couple earning a combined 20,000 shekels net per month falls within the mid-range. Those aspiring to live in premium areas like Neve Gan or Kfar Ganim Gimel need an income of 25,000 shekels or more.

For individuals earning 13,000 shekels net monthly, purchasing a standard four-room apartment is unfeasible, as the mortgage payments would leave insufficient funds for other essential expenses and likely be denied by banks. However, with this income, a four-room apartment in an older building in the city center or Kfar Ganim Bet, costing 2.2 to 2.3 million shekels with monthly payments of 5,200 to 5,400 shekels, might be attainable, with some streets offering buildings slated for urban renewal.

Petah Tikva's housing market has seen a slight decrease in prices over the past year, with the city-wide average for a four-room apartment dropping by 0.5%. Newer neighborhoods show a more significant decline, with prices per square meter falling by 5.6% in Ha'Moshava Ha'Hadasha and around 5% in Neve Gan, particularly affecting apartments sought by young couples. The city presents a considerable price gap between new developer apartments and existing second-hand units, with prices differing by up to 900,000 shekels for comparable units in the same area.

Compared to other cities, Petah Tikva offers a middle ground. A desirable apartment in Tel Aviv costs 4.5 to 5 million shekels, requiring a net income of 38,000 to 56,000 shekels. In Holon, prices range from 2.4 to 2.8 million shekels with a required income of 20,000 to 32,000 shekels, while in Harish, apartments cost 1.3 to 1.5 million shekels, needing 11,000 to 17,000 shekels. With a net income of 18,000 to 23,000 shekels and 800,000 shekels in savings, one can afford a good apartment in Petah Tikva.