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Shekel May Gain 12% Against US Dollar

If you live in the USA and have been considering buying an apartment in Israel, now may be a good time to invest.

Goldmann Sachs says the Shekel may advance 12 percent against the US dollar in the next year as Israel’s economy expands and the dollar weakens as the Federal Reserve steps up asset purchases.

Since most properties are now listed in Shekels, even if the housing prices stay stable in Israel, your US dollars will buy you 12% less house. But most analysts are predicting a strong housing market along with the strong Israeli economy.

“Israel’s economy is now well-entrenched and growth and interest rates are moving in a direction that is likely to support shekel appreciation,Ahmet Akarli, a London-based economist at Goldman Sachs, said in a telephone interview yesterday. “Some of it will be absorbed by Bank of Israel intervention but the central bank will allow some strengthening to combat inflation.”

The shekel may strengthen to 3.5 per dollar in three months, 3.3 per dollar in six months and 3.23 per dollar in 12 months, he said. (It’s currently trading at 3.66).

Now that the Canadian dollar is so close to par with the US dollar it may be an even better time for Canadians to invest part of their portfolio in Israel real estate. Call me to discuss it further.

Click below to see the full article…

Bloomberg article

Bloomberg article

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