In the Yavne’el Valley we’re at about sea level. The winter rains have done their job of turning the hills and valley green, and the almond trees are beginning to blossom.

Now it’s time to plant some flowers in the garden. Here’s a video of our visit to the local nursery. We live in an amazing part of the country where pansies, petunias and roses you are familiar with from North America can grow alongside birds of paradise, and cactus.

If you love gardening this is a great place to live. Call or email us and find out more.

However, one leading economist has already spotted an upward trend. Haim Natan, Chief Economist with Menorah Mivtachim, comments that signs have been building in recent weeks that the fall in real estate prices has run its course.

Says Natan, “The Bank of Israel’s interest rate cut last month, supposedly meant to prevent the real estate bubble from bursting, seems to have succeeded in pushing the public towards investing in residential property once more, and is liable to set off a renewed trend of price rises.”

Here’s a full article from Globes with more info on current economic trends.

Be our neighbor and enjoy quiet country living only 15 minutes from Tiberias. This 70 meter, 2 bedroom cottage sits on a large 570 meter treed lot.

This cosy private home has been tastefully renovated inside and out.

Relax in the lush garden filled with oranges, lemons, pomegranates, guava and more. Close to Shuls and mini-market.

Asking NIS 920,000 (about US 248,000)

The central bank is hoping that the recent softening of the housing market and the mortgage limitations that were enacted last year to discourage speculators will mean that cutting the interest rate won’t lead to a surge in home prices like it did in 2008 – 2009. Other experts disagree. We’ll see….

Here’s a full article from Globes explaining the situation.

Here’s a closer look of this great 400 meter home surrounded by 3.375 dunam of fruit orchards with a glimpse of the nearby 100 dunam (25 acres) of olive and mango orchards. For serious farmers I have another video walkthru of the orchards…

Trumpeldor was the most highly decorated Jewish soldier in the Russian army (where he lost his arm in action) before he came to the Yishuv. He started out as an agricultural worker in Migdal and then Degania. Later he joined the famous Zion Mule Corps and then became a national hero when he lost his life defending Tel Hai

Joseph Trumpeldor

Here’s a current picture of the valley Trumpeldor was plowing with the Arbel Mountain, Migdal, Tiberias and the Kinneret.

View from Migdal of Valley

At the same time, the real estate boom has slowed and prices have dropped on average 3.7% in the last four months (more in Jerusalem and Tel Aviv, less in the north and south of the country).

That means for foreign buyers, you can find places that are effectively 10% – 20% less for you than a year ago.

Here’s an example of a deal here in Yavne’el. This lovely 186 sq meter home on 1/2 dunam lot would have sold a year ago for NIS 1,325,000 firm (US 374,293). Today, the asking price is NIS 1,290,000 flexible (US $ 341, 269).

Stay tuned for more statistics next week. Contact Shmuel for details about this house

Here’s Chana enjoying a lucious grapefruit and explaining how she’s enjoying being in the orchard even more…

If you are looking for a farm in Israel, or property in the Galilee, see the next post for one great opportunity or contact Shmuel at 077-419-9001 or by email for more

View of the Kinneret, Tiberias and Arbel from the Balcony

The main house is about 400 square meters ( over 4000 square feet) and includes 3 large bedrooms, plus an additional large one bedroom apartment on the third level that is accessible from inside the main house or from a separate entrance from the garden. Included is another vacation suite at the garden level. Each room has a patio and stunning view.

The home is surrounded by over three dunam (almost one acre) of enchanting orchards.

Hidden in the garden is a Finnish Sauna and an 8 person Spa/Hot Tub. The garden and attached orchard is a veritable Garden of Eden of trees including, oranges, tangerines, mandarins, grapefruits, pomellas, lemons, limes, olives, dates, apples, kumquats, loquats, guava, walnuts, almonds, macadamia and other unique and exotic trees and plants.

Nearby there are 100 dunam (25 acres) of working orchards – half manzanillo olive trees and half mango trees.

Asking price is NIS 4,500,000 which includes the home, all the furnishings, and the 100 dunam of cash producing orchards.

Call or email Shmuel for more details and a link to a walkthru video of the home and gardens.

There are some wonderful galleries to browse and when you are done shopping there are plenty of Kosher Restaurants in Tsfat to enjoy.

We took an impromptu trip up to Tsfat in the summer. Chana loves wandering through the artist’s quarter and we stopped for some lunch and ran into our old friends Amir and Nicole and their family. It’s a small country!

It’s become almost impossible for a young couple to purchase an apartment in the center of the country where there are employment prospects.

Housing Protesters - source Jerusalem Post

Commenting on the tent protest, Netanyahu said, “The housing shortage is real… Young couples in Israel lack the wherewithal to buy an apartment, because apartments are too expensive. They are too expensive because there aren’t enough apartments, which is because of the government monopoly, which owns over 90% of the country’s land zoned for construction. Israel has the most convoluted planning commissions in the world and it takes more than five years to release an apartment for construction.”

Netanyahu added, “It is necessary to simplify these mechanisms. It took us two years to make these two changes, and this week we’re completing the reform in planning and building commissions and the Israel Land Administration. The government abolished the absurd ban for construction in the Dan Region (metropolitan Tel Aviv), various incentives have been created for contractors and buyers, and more will be created. We have linked up the periphery with highways, which has resulted in 48,000 new housing starts. ”

Here are some of the main points of the Prime Minister’s proposals this week:

• Reform of Land Administration and planning committees: Removal of barriers to marketing of land and to planning of housing units.

• Cheaper land for buying apartments: A 50 percent discount in price of land for construction of apartments, where contractors compete to offer lowest prices to buyers.

• Reduced-cost rentals: Construction of apartments for long-term rental, with 25-100 percent discount on land for contractors that offer lowest price to renters.

• Student housing: Construction of 10,000 new dormitory units for students.

• Cheap public transportation for students: Immediate 50 percent rail and bus discount for university and college students, to encourage them to live outside city centers.

• Municipal tax for empty apartments: Exemptions on municipal tax for empty apartments will be limited to six months.

source – globes.com and jpost.com

The entrance level boasts a modern eat-in kitchen with three sinks and a walk-out to the garden patio. The large living/dining room can host a large family and guests and also has a beautiful walk-out to the garden and sukkah/patio which further expands the living area. There is a beautiful library/office surrounded by built in oak book cases on the main floor as well.

One flight up is the master suite which is separate from three more bedrooms and two bathrooms.  On the third floor is a lovely guest wing and an attached walkout patio with a stunning view.

If that’s not enough, there is a lower level with a separate entrance that can be used as a separate 3 bedroom apartment or a large family room with additional bedrooms or office space.

This lovely home is completely surrounded by gardens and next to a large park. Close to synagogues and shopping malls.

If you want to be in Ramat Beit Shemesh and live in a very large home with the highest standards of design, materials and finishings like those found in Raanana or Hertzlia Pituah, then this is the property for you.

Call Shmuel at: Israel:052-889-6688 or USA:718-717-2192 for more info.

Here’s Chana giving a wonderful walkthru of the property…

- GDP grew 4.7% in 2010.

- GDP projection for 2011 is 5% and 2012 is 4.2 % (conservatively).

- Unemployment has fallen to an all time low of 6% closing in on full employment.

- Interest rates are low.

- Per capita income is $30,000

So what’s the problem? According to Bank of Israel Governor Stanley Fisher, “Why are we worried? Because (housing) prices are rising by 16%, which means that prices will double within five years. This has to stop. The question is whether it will stop in a way that won’t harm the economy.”

Deputy BOI Governor Eckstein explained that the housing market increases were based on supply and demand. There just aren’t enough new housing starts. Eckstein said that the Israeli economy was sound and strong in terms of consumption, exports, unemployment, and other factors. “The risks and opportunities in the Israeli housing market are due to demand and consumption. Fiscal credibility and stability are important factors in the stability of the Israeli economy.”

Meanwhile Prime Minister Netanyahu is pushing a new “supertanker” housing plan to build over 113,000 new housing units over the next five years to help the situation.

-sources www.Globes.co.il

Part of the new visitor center at the popular Tavor Winery it’s a fun activity for the whole family. There are amazing sculptures of celebrities and politicians as well as fairy tale characters.

It’s a family run business and you can watch the owners make the marzipan and praline chocolates.

After  a short film there’s a delightful workshop where you can make your own models from marzipan or chocolate – with help from expert instructors who adapt the workshop to every age from 3 to 93. Of course at the end, you can take your works home or eat them on the way. (ingredients supervised by the regional rabbi).

Enjoy the video – for more information visit their website.

Here’s a 200 meter, 6 room (4 bedrooms and den area) luxury apartment in the best area of town overlooking the lake.

It has a fabulous round panoramic window in the dining area. The kitchen is state of the art including electronically controlled stove top venting system.

All the finishings are to American standards. Including master suite with en-suite bathroom and large walk-in closet.

A place like this in Jerusalem or Tel Aviv would be well over US $2,000,000. The asking price is NIS 2,000,000 (about $573,000 – or almost 1/4 of of the price!)

Now that highway 6 is available and the 70 series of highways have been expanded, Tiberias is much closer to the Center of the country than ever before.

Call us at 718-717-2192 (USA line) or 077-419-9001 (Israel line) for more info.

“Currently, 50,000 apartments or more, mostly in central Israel, are used for businesses by dentists, lawyers, and so on. We want to provide strong incentives to sell these properties by 2013 by giving a full exemption on the betterment tax,” said Steinitz.

Israel Tax Authority director general Yehuda Nasradishi is unimpressed by Steinitz’s proposed measures. “I see almost no effect because I don’t see these guys selling their apartments so quickly,” he said.

Here’s the full report in Globes…

There is a large 4 bedroom family home with two private guest apartments (zimmers) on the upper level. In addition there is a second smaller 3 bedroom cottage as well as a large building that serves as storage and workshop.

There are 3 large gardens with fruit trees, a sports field with lighted basketball/soccer/volleball court and outdoor BBQ.

In addition there are approved plans for the construction of an additional 3 residential buildings.

The main property has about 20 contiguous dunam with apricots, olives, oranges, grapefruits, lemons, pamelos, apples, pears, peaches, pomegranates and mangos.

Call Shmuel for more information 052-889-6688

Today you can see the remains of the incredible Roman Baths and an ancient amphitheatre.

The popular modern hot springs and mineral baths fed by underwater springs are over 40 degrees celcius. There are no separate bathing facilities, however in the winter until Shabbat HaGadol, there is “men only” night on Thursday nights until 2am.

There is a lot to see and do even if you don’t use the Hot Springs or fresh water pool,

We watched the family-friendly parrot show, then took a stroll through the alligator park and petting zoo. There are lovely grounds for a picnic near the ancient Roman ruins.

It’s only 20 minutes from our Zimmers at Villa Rimona in Yavne’el.  Call or email to find out more and begin planning your vacation with us at Villa Rimona or buy your dream home in Israel.

Many people are expecting Bank of Israel Governor Stanley Fischer (who is a candidate to be the new head of the IMF) to raise the interest rates gradually throughout the rest of the year. But there was an interesting side point in an article that appeared today in the Jerusalem Post.

Most economists are expecting the official interest rate to rise to 3.25% on Sunday (up .25%). That means mortgage rates will be going up as well. The factors behind the increase are inflationary considerations, rising housing prices, high economic growth and the recent recovery of the dollar against the shekel.

One of the goals is to help slow down the housing market and keep prices in check. However most analysts see price increases.

What got my attention in the article was the following prediction…

“USG Capital analysts Eli Ben- David and Shai Zakhaim predicted that the dollar would return to its downward trend against the shekel after it fell back below the NIS 3.50 threshold early Thursday.

They forecast that the dollar exchange rate would fall to NIS 3.40 within three months and hit NIS 3.30 within six months.”

That means a NIS 2,000,000 apartment today would cost you about US $570,000. Six months from now, the local price will very likely rise to NIS 2,200,000 but since the dollar may lose value, that same apartment could cost US 666,000 – an increase of almost 17%.

Even if the local prices stay the same in shekels, that US $570,000 apartment will cost US$ 606,000 six months from now.

Moral of the story: If you are holding US dollars right now and have been considering purchasing property in Israel, you may want to invest in Israel real estate sooner rather than later.

Click logo below for the full article…