Over the last twenty years, the Shekel has been one of the world’s strongest currencies. 

Renting a property without paying for it is no longer illegal. McDonald’s and Burger King in the UK are just two examples of a ‘blue chip’ tenant refusing to pay or looking to reduce their quarterly rent payments. 

Legal protection for commercial and residential tenants in a number of countries has already been enacted. Due to Covid-19, these tenants are not legally in breach of contract by not paying their rent for 6 months, even if they have the assets to do so. 

In other words - some of the most basic premises of investing in real estate no longer hold true. 

Those who have made Aliya from the UK have experienced first-hand the effect of the sterling’s decline over the past decade. From a peak of 8.7 shekel to the pound in the summer of 2007, the rate fell by almost half to its low point in the winter of 2016 and has recovered only slightly to trade at 4.8 this February.

Whilst the Brexit vote has undoubtedly been a factor in this development, the fall in the pound predates the 2016 referendum and is more a factor of the global financial crisis and the remarkable strength of the Israeli economy since then. Whilst this latter point is a source of pride for all Zionists, it creates significant challenges for those who moved to Israel or those thinking of Aliya. A disruptive Brexit or a hard-left new government could cause a collapse in the pound, which would have a significant impact on pension values.

Most investors in Israel who were raised in English-speaking countries are familiar with the concept that the professionals they receive financial advice from must be properly trained and be under the supervision of a national regulatory body. That’s the case in Israel too – with licensed practitioners being supervised by the Israeli Securities Authority – but there’s a glaring loophole that many experts fear is being utilised on unsuspecting clients.