Such a difficult dilemma
The truth is, we are in uncharted waters, and no one honestly knows how or when this will end. Personally, I’m concerned that we’re only at the beginning of this pandemic. I’m worried about our loved ones and I’m worried about our financial security. I really hope my fears are exaggerated.
So, considering that, is now the time to buy a property in Israel?
Well, world financial markets have collapsed, and there is talk of a recession and possibly even a depression, not seen since the 1930’s. Economic forecasters estimate that it may take a decade to undo the damage that’s already been done.
House prices worldwide are likely to tumble.
However, when buying in Israel, there is another factor you need to consider. Exchange rates.
Where do you think the Dollar, Pound, Euro and Rand will be in relation to the Shekel in a year from now?
The US, the UK and the Eurozone were already heavily in debt before the pandemic and their currencies were steadily sliding to the Israeli Shekel.
Israel has low national debt and a young population, and importantly, seems to have taken decisive and early action to protect itself from Corona. It’s very possible that the Shekel will strengthen even further towards to other currencies. Therefore, even if prices go down, the foreign buyer may not have that much to gain by waiting.
Therefore, will your buying power be any better in a year?
A second point to consider is that kablanim are already beginning to offer very attractive finance deals. For example, one kablan we work with is offering, on a very limited basis, 10 year financing instead of 2, on a sea view project in the greater Tel Aviv area, in a project that will be ready in one year. That means for a down payment of just 30%, you can have an apartment ready in a year.
There will be deals out there, and a good realtor will help you get the best deal you can from the builder.
So, if you are concerned about the financial stability of the US, UK and Eurozone and you want to be part of Israel’s future and you believe in Israel’s ability to overcome adversity, then don’t wait and buy now. You might not be able to in a few years.
Contact us now to discuss your options.