Archives for July, 2008

banks

Merrill Lynch warns on credit risk at Israeli firms

In this fine article in Globes, Merril Lynch tells why they expect a coming credit crunch in many Israeli companies. While most of consider issues such as these as something that only the big boys can think about, it has a profound effect that we are already seeing at the banks. If you read between the lines of the article, you’ll find that there is a greater need to provide inflation indexed income to the banks. One of the ways that they accomplish it is by change the relative cost of the different mortgage products that they offer and forcing home buyers to provide this income. If, for instance, only a few months ago we saw the banks fighting each other in “Prime -”...
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israeli real estate

תיקון בשוק הנדל”ן יהיה שולי

“תיקון בשוק הנדל”ן בישראל יהיה שולי There’s a new economics website, called כלכליסט that I saw today. The article linked to above is taken from there. I think that this is just a new branding for Yediot’s business desk, mimicking Ha’aretz and the Marker. The same old woman in a new dress. I’ve heard a lot of speculations about expected corrections in the prices of real estate in Israel. According to the experts cited in this article, these are unfounded. In the worst case scenario, we might see some shekel stickiness when the dollar starts to appreciate (if ever). In another article on the same site, there has been a 6% reduction in the number of new apartments sold this year. Yet another article...
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inflation

Beware the Building Index

The following is only an illustrative example, and is presented as food for thought, not specific advice. If you have a contract for an apartment under construction, you might want to consider accelerating your payment schedule. For most of us, this means paying a mortgage and rent at the same time, but under today’s conditions it might be more profitable. If you look at the Ministry of Construction and Housing site, you can see fairly updated figures for the building index. Right now, the figures are only up through May. For that month the index was 2.2%, or 5.2% year to date. This is much higher than the consumer price index (מדד).The indexing works the same way as CPI indexing to which most mortgages...
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