The Israeli economic system belies common sense. So far as I can tell, on average, wages are about half of what they might be in the States. Yet, many things cost twice as much— certainly, anything imported. Electronics, fuel and utilities are significantly more expensive than in North American. How people manage to survive with such a disparity, I haven’t been able to get my head around.
The goal of many is to own their own home. But by home, I mean “condo” as most people live in apartments. The benefits of that aren’t entirely clear. mortgage structures are radically different. The minimum down is typically 20%— with preference to borrowers who put down 50%. Additionally, many interest rates are linked to cost of living, which during the inflationary 80s and early 90s could fluctuate wildly. And after squeezing you on terms, most mortgages further require guarantors.
An older article from the JPost describes some of the options.
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