Archives for January, 2013

bonds

Cheap is not good

People’s natural inclination is to look for the best deal. Have you heard the Eldan commercials on the radio? People want to keep on talking about the great deal that they got. I haven’t checked the statistics, but I’m sure that Zap or a similar website is in everyone’s bookmarks. We occasionally get clients who think the same is true for mortgages. It is not. There are so many factors that  go into selecting the proper mortgage. Price is only one of them, and not by any means the most important. Say you took out a 1 million shekel loan. If you shop around and get the best rate you might get something around 0.2% less than the going rate. Big deal. It isn’t even...
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bank of israel

Now is more than likely not the best time to buy an investment property

I haven’t written much over the past few months. There isn’t really a lot to say. I find that I’m turning away about 4 out of every 5 people who are interested in a mortgage. While this isn’t very good for my business, it is the right thing to do as too many people have bitten off way more than they can chew. Real estate prices are too high. They aren’t artificially high, just good old supply and demand too high. The cheapest “normal” flat costs 1.5M shekels. Regular people can afford neither the down payment nor the monthly payment on a mortgage on the remainder. A few months ago the Banking Supervision Department of the Bank of Israel changed the current regulations on new mortgages...
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