Israeli Real-Estate Consulting

20/02/2024

Beware the Trap: The Deceptive Allure of CPI-Linked Mortgages in Israel

Entering the realm of real estate investment can feel like tackling a daunting maze, where hidden traps lurk beneath the surface. In Israel's mortgage market, one such trap lies in the guise of CPI-linked mortgages, promising low initial payments but concealing long-term risks.

Deciphering the Deception: CPI-Linked Mortgages Exposed

While North America favors fixed-rate and adjustable-rate mortgages, Israel introduces a different player: CPI-linked mortgages. These mortgages adjust their principal balance based on changes in the Consumer Price Index (CPI), initially seeming like a bargain but potentially leading to higher costs over time.

Facing the Reality: Long-Term Consequences

Don't be fooled by the illusion of affordability. Despite the initial appeal of low rates, CPI-linked mortgages often result in greater expenses down the line. As inflation creeps in, so does the burden of increased principal balances, gradually escalating the overall cost of the mortgage.

Exploring the Pitfalls: Proceed with Caution

Amidst the labyrinth of mortgage options, CPI-linked mortgages offer a false sense of security. While they boast lower early payment fees, the long-term financial implications can be daunting. Falling into this trap without fully grasping the risks can spell financial disaster.

Conclusion: Navigate Wisely, Craft Your Ideal Mortgage

In the complex landscape of real estate financing, CPI-linked mortgages in Israel pose a formidable challenge. However, by understanding the true cost and implications, investors can craft a mortgage tailored to their needs, ensuring it aligns with their long-term financial goals while avoiding the pitfalls hidden within CPI-linked mortgages.

19/09/2023

A guy in Poland devided an apartment to 25(!!) 3sqm units.
Do you think this can be a solution to our real estate crisis?
בחור בפולין פיצל דירה ל25(!!) יחידות של 3 מ"ר.
חושבים שזה יוכל לפתור את משבר הנדל"ן בארץ?

28/08/2023

I asked chat GPT if they (it?) Kniws me.
Great answer!

04/08/2023

Let me tell you about last night's lecture at Yam HaMelach. I drove there all dressed up in a button-down shirt and dress pants, while the realtors attending the getaway weekend were all rocking their shorts – quite the contrast! Moreover, I spoke about mortgages and finance right after most of them got a massage.

But you know what? They were super engaged during the whole session! I think it was because I suggested some interesting solutions for dealing with the interest rate crisis. We had this friendly atmosphere going on, and despite the attire mismatch, we had a great time discussing mortgages and sharing insights. It turned out to be a surprisingly fun and fruitful experience

הרצאה אמש בים המלח. נסעתי לשם כולי מגוהץ, בזמן שכל הסוכנים שהגיעו לסוף השבוע של נופש היו לבושים בשורטס. יותר מצחיק, דיברתי על משכנתאות ומימון מיד לאחר שרובם קיבלו מסאג'.

אבל יודעים מה? הם היו ממש בעניין במהלך כל הרצאה. אני חושב שזה כי הצעתי כמה פתרונות מעניינים להתמודדות עם משבר הריבית. שררה אווירה נעימה, ולמרות חוסר התאמת הלבוש, בילינו נהדר בדיון על משכנתאות וחילופי רעיונות. הסתבר שזו הייתה חוויה מפתיעה ופורייה!

27/06/2023

What are the differences between buying a house in the USA and in Israel? -

buyers interested in purchasing homes in Israel, I wanted to share with you a comprehensive list highlighting the key differences between Israel and the USA when it comes to buying a home and getting a mortgage. Whether you are considering a move to Israel, have acquaintances who might be interested...

15/06/2023

Great Update on Indices June 2023!

Consumer price index increased by 0.2% 📈
Cost of construction index decreased by 0.1% 🏗
Apartment price index decreased by 0.2% 📉
Explanations:

The 0.2% increase in the consumer price index is lower than the expected 0.5%, which reduces the likelihood of an interest rate increase. Yay!

The 0.1% decrease in the cost of construction index results in lower payments for those who purchased properties on paper and haven't paid the full amount yet.

The 0.2% decrease in the apartment price index indicates a potential decline in housing prices.
Yay again!

עדכון משמח על מדדים 15/06/23:

מדד מחירי הצרכן עלה ב-0.2% 📈
מדד עלות הבנייה ירד ב-0.1% 🏗
מדד מחירי הדירות ירד ב-0.2% 📉
הסברים:

העלייה של 0.2% במדד מחירי הצרכן נמוכה מהצפוי, ולכן מקטינה את הסיכוי להעלאת שיעור הריבית. יש!

הירידה של 0.1% במדד תשומות הבנייה מביאה לתשלומים נמוכים יותר למי שקנה נכסים על נייר וטרם שילם את הסכום המלא. יש פעם שניה!

הירידה של 0.2% במדד מחירי הדירות מציינת שינוי מגמה לירידה אפשרית במחירי הדיור. יש פעם שלישית!