What Is It Like in Other Parts of the World ?

         This summer I had an opportunity to see real estate in two countries, and now that the summer is over and I look back at my experiences, I wanted to reflect on what I saw. In US we pay a lot of attention to real estate – for many it’s our biggest investment. We are happy when our investment is going up, complain when we can’t afford the home of our dreams, worry about interest rates, predictions of the economy, etc.

It was interesting to have a little glimpse into what real estate is for others in the world. I was in Kiev, Ukraine and Israel and this is what I found so different.

Not Quite Private. In Ukraine, the private real estate ownership is there, but some things are very strange. For example, apartments are privately owned, but the buildings belong to the government. Not surprisingly, the conditions of the common areas are awful: dirt and filth on the staircases, the exterior is crumbling and deteriorating. A piece of the balcony fell within inches of my head.  Many of these apartments cost  $500,000.

Luxury? We rented what is considered the absolute “luxury” apartment. It had 2 bathrooms -one of the few available in the city - most apartments have only 1 bathroom. On the other hand, we saw summerhouses the size of Versailles behind huge walls in the suburbs.

Affordability. Land is in big demand by the new moguls. I spoke to a man who told me that his parents sold their farmland, so he and his family can buy an apartment in the city. Without such help, he could never afford to buy.

Small Spaces/ Big Places. I also visited Israel. I saw middle class houses with living/dining rooms for family activities and small bedrooms – for sleeping. We did not see Family Rooms, Libraries, Huge kitchens, and big yards.  What was so interesting is that no matter how small the house – limitless parties and guests were accommodated. Many places saw significant price declines, but it was not the topic on peoples mind.

I am back and the US housing market is on every ones mind. My summer experience, is putting things for me in a different perspective.