Archives for November, 2008

interest rate

The lowest interest rate ever

The official rate of interest for December will be 2.5%. Read about it here. This is the lowest rate ever in Israel. Mortgage rates have remained stable. They’re relatively low. If you have a prime-based mortgage, you will be seeing your lowest payments ever right now. As always, we recommend that you prepare for a rainy day, and save the difference rather than spend it. As I wrote yesterday, this is a terrific time to invest in Israeli real estate. My recommendation for people who don’t know what to do with their money is to purchase investment properties, 50% in cash 50% with long-term mortgage. Every case is different, and you should always consult your qualified Israeli Mortgage Expert....
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foreign investment in israel

The time to buy an investment property

A great analaysis, that I think covers only a portion of the story:Globes – business and technology news from Israel The other half of the story is that banks are really hungry for quality clients, and attractive loans are available to attractive clients. I think that this is a great time to invest in real estate. You have nothing to do with your cash, take it out of the bank and buy an apartment, 50% mortgage and 50% cash. We’ll show you the tricks for making it work in the long-term. Now is a great time to invest in real estate. Every case is different, and you should always consult your qualified Israeli Mortgage Expert....
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banks

A resounding silence

I’m very concerned. Since early this morning, Poalim has been off-line. Their official reason for this is “a computer glitch”. Speaking as one who used to sell software to Poalim and Isracard, there is one thing I can assure you: the computers don’t go off-line at Poalim. If they were, it was because it was very convenient for someone to have them off-line. There is a growing fear that Citigroup woes will spill over into Israeli banks. Apparently Discount is the most exposed to Citigroup, but Poalim might be in full-swing panic mode. Silence. Copyright its owner. What happens if Poalim folds? I don’t think that it can happen, it is the largest bank in the country and the government will have to take...
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And the good news is: inflation

October’s inflation, the official site. All of the banks were telling us to expect a negative CPI (consumers’ price index) this month: businesses are going sour, housing prices are declining, oil will push down all of the prices. While we hate inflation, deflation is a tell-tale sign of recession. If we could always have 0.1% average monthly inflation, things would be great. Things seem to better than the banks are predicting. Every case is different, and you should always consult your qualified Israeli Mortgage Expert....
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Interest rates move even lower

בנק ישראל יפחית את הריבית ב-0.5 נקודה In another drastic measure, the Bank of Israel has reduced its interest rate to 3.0% This would give us a prime rate of 4.5%. This is historically as low as it’s ever gotten. You can see the historic rates here. Make no mistake, this does not mean that mortgage rates will fall, unless they were tied into the prime rate somehow. We are advising our clients how to take advantage of this. Every case is different, and you should always consult your qualified Israeli Mortgage Expert....
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