Archives for September, 2007

bank of israel

BoI Leaves Rate at 4.0% and the shekel will strengthen

The Bank of Israel has left interest rates unchanged. Following the reduction of interest rates in the United States, there was little room for a rise in rates. In other financial news, Israel’s international credit rating was raised this week. This means that the Shekel will strengthen. We will see the shekel rate become stable at under 4 NIS/$ as more foreign currency will continue to flow into the country. The most important reason to work with Israeli Mortgage Experts isn’t rate shopping, it’s understanding the fundamentals of Israeli finance. Two months ago the dollar rate was 4.35, and we spoke about moving into dollar indexed mortgages and out of shekel linked mortgages. Several months before that we were giving the opposite advice. We...
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inflation

Still More Inflation

In all of the excitement of preparations for the Day of Judgement, the August CPI didn’t get the attention that it deserved. The CPI for August was 0.7%. This is the highest August rate for 12 years. What’s worse is that this is coming on the heels of 0.7% in June and 1.1% in July.If like most Israelis, you have a mortgage for around 500,000 NIS, you now owe 512,500 instead. Your monthly payment will only go up a little, but your debt has increased by 2.5%.I have said this many times, and I will say it again. Your rate is of little importance in Israel. “Mortgage Advisors” who run from bank to bank to try to reduce your rate by 0.1% have a...
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investments

Luxury housing prices skyrocket – Haaretz – Israel News

I’m going to continue to writing about investing in Israeli real estate. It is a good investment.As I said in my previous post, we are in the upward portion of real estate valuation cycle. We can never know if we are at the top or bottom of cycles only in retrospect. When you are in the middle of a cycle it is easier to know. Right now we certainly are, so for those inclined to invest in real estate, this is a perfect time. Take a look at this quote from the article in Haaretz: “In Herzliya Pituah, luxury home prices gained 30 percent, and in less prestigious parts of Herzliya, prices rose even more” (emphasis mine) For most of us, it is hard...
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investments

Not Just Rehavia

Real Estate prices in Israel just keep on going up. For a while, we thought that there was a one-time influx of foreigners pushing up demand, mainly in specific neighborhoods in Yerushalayim and Ashdod. Take a look at this. BTW, three of the four apartments in the article were bought by foreigners. Tel Aviv was never a choice city for foreigners. The religious tended towards Yerushalayim and the others more towards Herzilya or Caesarea. I don’t want to alarm anyone, but I think that the ripple effects have spread out to other towns, and that we are now at the beginning of a local real estate bubble. In addition to the common places, even cities like Bat Yam and Modiin are becoming prime investment...
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