The Tel Aviv Financial Center Supermarket project is becoming ever more complicated. Yesterday I had a meeting with the Owner of this TASE company. Following my report that the 5 stories building was built in the twenties with salty marine sand and the underground walls and columns were desintegrating (see pic), he had already a meeting with the City Engineer and on Sunday I am to follow up at the Dept. level. I am amazed how fast these people operates. They are not like me. always postponing things. He had understood the issue immediately (not for nothing he built up - in the five years I am working for him - a stock exchange corporation in Israel's hellish jungle business environment.) He did not show the minimal worry or hesitation, the project is going ahead at full speed.
PD: This real estate is worth more than its equivalent on Wall Street, NYC. No kidding, Tel Aviv Financial Center real estate is very expensive and the shekel is very strong (and the dollar very weak).
PSS: BTW, these people are pious Jews from a remote Soghdian caliphate. A century ago we Ashkenazi Jews didnt even know about their existence.
4 comments:
Are you ever going to report any of this or just blog about it?
The problem of Tel Aviv's old buildings are in the public domain. There is no issue of secret or ignorance here. It is just I am faced with it for the first time and only in a marginal way, as my area is water and sewage, not structural engineering. The Government is much worried with earthquakes and has spent money in programmes. In this specific case the issue has been debated two days ago at a high level and solutions are being considered. Money is not an issue, the real estate is very valuable, maybe at Wall Street Level (I am serious. The shekel is very strong).
What's the best way for an American to open up an account (denominated in shekels) to trade on the TASE?
My advice: get out of the dollar. The fiscal policies of the U.S. government are now so reckless, we are almost certain to have a currency crisis with a few years-- if not this year. Strong currencies are the Swiss Franc, and evidently the shekel. Very few currencies are trustworthy.
I cannot give advice on the best way to open an account in shekels. I think you can do it in almost any bank. I'd prefer the New York branch of an Israeli bank such as Leumi, Poalim, Discount, Beinleumi, Mizrahi. Being in New York, all accounts are guaranteed up to a certain amount.
In Israel there is the category of account for foreign residents, which are free from tax for 20 years. You can open an account in a Tel Aviv bank (you dont have to be here for that) and manage it from the US. Israeli banks are totally computerized so you can manage your account from anywhere including buying and selling TASE shares or any shares anywhere. All the banks show their statements in many languages, the obligatory ones are Hebrew, Arabic and English. Most also operate in Russian.
Taxes are 20% of earnings paid when you sell and realize the profit. On interest the tax is 15%. The bank retains the tax automatically. Bank fees are negotiable and can be very low. Israeli banks are very honest about fees, there are no hidden charges. But you have to read the small letters twice and spend a day thinking out what they are saying. Sspecially about floating rate loans.
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