is youR monEy sleeping?
How to make the most of your capital
What to do with spare capital when you can’t find a profitable investment in Israel?
Is your capital gathering dust in savings plans?
Do you own real estate in Israel and fear the bubble will burst?
There is nothing more frustrating than seeing the capital that you accumulated through many years of hard work sitting idly and not growing.
You’re not alone, many people are in the same situation as you.
It’s not easy to manage assets with a secure feeling when interest rates hover around the zero mark. Many people wonder what’s the best way to manage their capital wisely.
They are tempted to take risks on the stock market in order to ensure that their capital retains its worth, even though Israel’s economy has been stagnant for a long time.
The Israeli real estate market has managed “so far” with great courage to absorb cash surpluses and is expanding. This is indeed a difficult dilemma for the Israeli investor and since it is so difficult to make a profit in Israel, the logical conclusion is that investors have to go abroad. American real estate has a solid base of a positive economic climate and with increasing demand for assets and residential properties.
No developed economies are immune from the damage caused by zero and negative interest rates. Once again stock exchanges stand at record high levels and real estate prices have skyrocketed. There is, however, one exception – in the very economy that caused the worldwide crash of 2008, the US real estate market prices are still low and show impressive signs of recovery. Investors from all over the world have already discovered this potential. American real estate has a solid base of a positive economic climate and with increasing demand for assets and residential properties. Some of the causes of this potential
Low unemployment – one of the clearest signs that the US economy is recovering is that unemployment has dropped to normal levels.
Decrease in number of foreclosure properties - as a result of real estate purchase. People from all over the world are snapping up properties that, until recently, were untouchable.
Positive demographics - the US population is growing at a steady rate of 1% per year.
Rock-bottom prices – existing home prices are still considerably lower than the cost of building new homes. In other words, real estate demand has not yet expressed itself in new housing starts but rather in the purchase and leasing of foreclosure assets. To make it quite clear – this is a win-win situation with no chance of losing.
Expected price increase - Real estate prices have remained steady because of a glut in foreclosure properties for sale. As long as the pool of such properties was large, prices remained steady. Now this supply is drying up at a steady level and the number of attractive real estate bargains is decreasing. This guarantees price increases in the very near future.
Increase in home building starts. As mentioned above, the cost of building new homes is significantly higher than the present cost of many existing properties. The new construction will trigger an increase in the price of "old" properties.
Reminder: Apartment prices lost, on average, 60% of their net worth during the sub-prime crisis.