One of the main issues with "Mehir LaMishtaken" is the fact that it isn't accessible to everyone. For instance: An apartment in Kiryat Motzkin that costs 950,000 NIS still demands at least 260,000 NIS for down payment and expenses, and over 4,000 NIS/Month for mortgage payments. BOI, Mortgage banks and Ministry of housing have agreed to [...]
A shared building has a leak in the roof, seeping water into the top floor apartments. The tennants ask the Va'ad Bayit to fix it, but get an answer: " we're out of miney for such a fix, you may do it yourself if you want." A tenant in the building wants to put [...]
Everyone know what are mortgage guarantors: family or (very) close friends that are willing to co-sign your mortgage, and share some of the risk. Everyone, except the Israeli banking system. After too many stories of guarantors that disappeared leaving their friends and family in a dire financial situation, the Israeli regulators have decided to put [...]
A client of mine approached me with a dilemma – to sell or not to sell an investment apartment he bought. It was an apartment in Jaffa he bought about 6 years ago for 740,000 NIS, and it’s worth about 1.05M today. On one hand, he earned a great 40% profit on his capital. [...]
So, what is a Musha, and should I fear it? 1. A Musha is a very old system from the days of the Ottoman empire. It is however still in use in many any areas of the country. 2. Essentially, it determines what proportion of the total property you own, instead of which property specifically. To [...]
Why should one invest in real-estate? In my case, I sometimes feel I was destined to do so. My grandfather, may he rest in peace, was an architect, my mother is currently one, and my brother is studying to be one. My father used to be a realtor, my parents invested in real-estate, and if [...]
So you've started to consider the purchase of an apartment. Congratulations! But how will you know the maximum value of an apartment which is within your means to buy with a mortgage? [Too much math? you can get an immediate budget here] There are two main criteria which determine the approval of a mortgage- the cost [...]
The entire process of buying property should start by some good online research. Even if ultimately the actual purchase is carried out with the help of a broker, it is essential to begin analyzing the area online so as not to “go in blind”. The two main property databases in Israel are Yad2 and Madlan. [...]
Many friends and acquaintances have asked me lately whether they should buy an apartment in Israel. The simple answer is NO. But let's talk about it! (at length…) As a rule, cold hearted economists (like myself) differentiate between two very similar concepts, which are often confused: housing and property ownership. Housing - the right to live [...]
DIY mortgage refinancing (with some professional help): The bottom line: If you're mortgage is from 2008 and earlier you can save a significant amount of money Cost - 2,000-3,000 NIS (not including early termination fee). Time investment - 2-3 days of work, mostly in shorter sessions. Total duration: about a month and a half. Important [...]
