How to Save Money Easily with Currency Rates and Transfers

How to Save Money Easily

with Currency Rates and Transfers

(These are the thoughts of CapitIL Real Estate Agency Sales Director Ben Levene.)

This blog is about currencies and currency rates.

As a disclaimer, we sell real estate and are just trying to give information about the concepts. Please see a currency expert or financial advisor for real advice.

Currency Rates

The importance of the currency rate, the dollar against the shekel, is a crucial part of the process in buying real estate.

The shekel has been in favor recently, with the rate fluctuating from around 3.1-3.25 approximately. About six weeks ago and again recently, the dollar sits just under 3.5, meaning dollars are in massive demand and people are buying dollars.

How this affects you practically is because you want to spend shekels, but have dollars, which puts you in a strong position. At this point, if someone is holding dollars and is seriously thinking about purchasing in Israel, they should think about if they find the right thing, doing it quickly, and even if they haven't found what they are looking for yet, getting their dollars into shekels.

I cannot stress enough how much of a difference it makes in terms of prices. Two million dollars may have been 6,250,000 NIS two or three months ago and now it's nearly 6,800,000 NIS.

Currently, your buying power is much stronger, which means timing is crucial. 

Transferring Your Money

Another important aspect of currency is the process in which you change that money. You can transfer it from bank to bank however, with the bank rate and fees they charge you, it can end up being quite pricey.

Your other option is using a transfer company like IsraTransfer. We have done a lot of work with IsraTansfer, but you should always get independent advice and seek referrals to other companies you could work with.

IsraTransfer charges you a fixed rate of approximately half a percent, which is the only fee for moving your money. For example, if you were to move a million dollars, you could easily save 10 to 20 thousand dollars through IsraTransfer as opposed to through the bank. Again, you should compare all the rates and speak to professionals.

The rate you are getting for your money makes a huge difference. You have to figure out what you think will be your best bang for buck and ask yourself the right questions.

Do you change your money when the rates are high? Do you think it is going to move more in the dollar's favor or do you think it is a very short time in which these rates are occurring?

Again, no one can tell you the right answers, however, it is something to think about if you want the security of knowing that the rate has worked in your favor.

You can take the risk and not feel bad if you change now and it carries on going to 3.60 or 3.70. If that is going to upset you, do not change your money just yet.

However, if you want security, and you need to know that you are getting a good deal and you can afford it, then you should seriously think about changing your money now. 

Conclusion

There are professionals to confer with that understand currencies and what is happening in the market much more than I do. Please do not take this as financial advice, I am just pointing out the importance of the fluctuation of currency rates.

The impact it has when purchasing real estate in Jerusalem is huge, especially now, in a market where there is such low supply and prices are very high.

A three or four percent swing in your favor could be very helpful, and an eight to ten percent swing is significant.

How long that eight to ten percent swing will exist, no one knows, which is why you should be looking into it with professional advisors as soon as possible.  

Contact CapitIL Real Estate Agency.

See available Jerusalem real estate here and new development projects here.