What’s $35 Million Get You in Herzliya Pituach? Oh, About Half an Acre…

Last week we saw the record for highest residential transaction shattered with the purchase of a 135 Million NIS (36 Million USD) home on Herzliya’s prestigious Galei Techelet street by online casino mogul Teddy Sagi. The home is an impressive 2,000 square meters (21,530 square feet) on a two dunams (half an acre). Nice, to be sure, but worth it? Who really got the better end of the deal, Sagi, who will take possesion of a grand home with a private Mediterranean beach, wine cellars, and a fully equipped home gym, or Zaki Rakib, the high-tech industry executive and seller, who purchased the home back in 2005 for a total of 25 Million USD, which at the time was the highest amount paid for a residential home in Israel, who just made a 38% return on his dream home, a return not even a residential investor could ever dream of.If people are willing to put up this kind of dough for the place, it must be special huh? Surely it must be a beautiful home, but for half the price you could find a home on a much grander scale, and on a piece of land umpteenth times larger, also with a private beach, anywhere besides the upscale Herzliya Pituach. It begs to ask the question, just how much is a name and an address worth? If you ask me, priceless. While the “value” might not seem to make sense to most buyers out there, one never buys their home simply because of the deal they’re getting. We live for lifestyle, for fun. Simply put, Herzliya has it all; the beach, the marina, fine dining, and most importantly, you can live in a house on the beach NEAR TEL AVIV. This simply cannot be understated. While you can find a comparable property in equally, if not more, stunning Caesarea, for about half the price, you’re also 90 minutes from Tel Aviv, making it much less compelling. How much are you willing to pay for location and a prestigious name? Maybe me and Teddy Sagi and everyone else in Herzliya are off base?  I’d love to hear your comments 🙂