12 MONTH
CERTIFICATE
5.75%
Apocalypse Later
INTEREST RATE
While the Israeli propery market may be facing
tough times, a crisis seems unlikely.
5.870
A.F.Y./*
STUART HERSHKOWITZ SPECIAL TO THE JEWISH NEWS
any people are wonder-
ing if Israel is on the
verge of a real-estate
crisis and potential
home buyers and sellers are ask-
ing what they should do.
When discussing real estate
in Israel, it is customary to as-
sume that we're basically talk-
ing about the area between
Hadera and Gedera. The rela-
tively large population in this
small area, not including the
Negev, makes Israel one of the
most densely populated coun-
tries in the world.
One major difference between
Israel and most other Western
countries is that developers
do not "warehouse." In oth-
er words, developers don't
have any kind of inventory
of apartments which they
hold for sale. In New York,
following the real-estate
crash, many developers
were left with
large, unsold pro-
jects that were
60 MONTH
CERTIFICATE
6.00%
6.13%
INTEREST RATE
A.F.Y./*
These are fixed rate certificates of deposit that are insured by Federal Deposit
Insurance Corporation (FDIC). A minimum opening deposit and balance of $500.00
is required to obtain the stated Annual Percentage Yield.
*** FederC aryInsured
BANK
EQUAL HOUSING
OPPORTUNITY
LENDER
CALL (810)338-7700 or (810)352-7700
Main Office 2600 Telegraph Rd. Bloomfield Hills, MI 48302
7 ,
z1"-
'Annual percentage yield when compounded quarterly. Rate is accurate as of 1/10/97. Penalty for early withdrawal from certificate accounts may be assessed.
cn
WE COME TO YOU ... MOBILE AUTO GLASS & GLAZING SERVICE • 50 MILE RADIUS INSURANCE REPLACEMENT SERVICE
Al's Saves
You Money!
al's
GLASS & AUTO TRIM
CUSTOM WALL MIRRORS
TIRES & ACCESSORIES
ESTABLISHED 1920
OVER 74 YEARS OF SERVICE
INSURANCE REPLACEMENT SERVICE • FAST SERVICE • QUALITY • PRICE
WINDSHIELDS
REPLACED
C
C
$25-$55 OFF
MAY BE APPLIED
TOWARDS DEDUCTIBLE
coupon exp. Jan. 31, 1997
INDSHIELDS
REPAIRED
rn
• NVERTIBLE TOPS • AUT • U • H •
>.
•
cc
44,
e e
INSURANCE COMPANIES MAY
WAIVE YOUR DEDUCTIBLE
WHEN YOU HAVE IT
REPAIRED
coupon exp. Jan. 31, 1997
NEW
`WINDSHIELDS
50. 00
SURPLUS STOCK
FROM $
PLUS INSTALLATION
L
00
2
coupon exp. Jan. 31, 1997
•Windshields - Replaced or Repaired, Mobile Service
•Complete Insurance Replacement Service
r
TUB ENCLOSURES
SHOWER DOORS
25°'°
OFF
Fire, Theft, Vandalism or Floor Damage
•Auto Theft Repair Experts - car, Vans, Pickups
•Auto Upholstery & Alarms
MARV SAYS!
Bring Your
Insurance Claims
To Al's
•
We Will Meet or Bea
your Best Price on
Maj i r Brands!
WE 'RE #1
24 hour
Board Up
Service
Call
810-353-2500
coupon exp. Jan. 31, 1997
r
MIRRORED
DOORS
BI-FOLD • SLIDING
"SENIOR CITIZEN'S DISCOUNT"
20°/13. 40%0FF
25% OFF 20% OFF
VINYL or WOOD WINDOW
REPLACEMENT
coupon exp. Jan. 31, 1997
SUNROOFS
IN SHOP STORM &
SCREIRNrsFEAIRS
INSTALLED $1 49
FROM
0
z
0
0
Many Styles & Sizes
WE REPAIR ELECTRIC SUNROOFS
SOME RESTRICTIONS APPLY
L.
coupon exp. Jan. 31, 1997
SOUTHFIELD - 24777 Telegraph Rd. • 810-353-2500 • LINCOLN PARK
eventually sold at huge dis-
counts.
In Israel, most new homes are
sold while still on paper. This al-
lows contractors to back out on
Stuart Hershkowitz heads the
international division at the
Bank of Jerusalem.
33
0
LEADING ISRAELI STOCKS
TRADED ON U.S. EXCHANGES
0
cn
m
0
I
=1
Symbol Name
Exchange
Dec. 27
Jan. 3
Change
SCIXF
Scitex
NASDAQ
9.75
'11.25
5
1.50
I
ECILF
ECI Telecom
NASDAQ
'19.61
'21.00
5
1.39
•
TEVIY
Teva Pharm
NASDAQ
'47.61
'55.25
'7.64
IEC
PEC Israel
NYSE
'17.50
'17.75
'0.25
ELBTF
Elbit Computers
NASDAQ
2.00
2.00
'0.00
ELT
Elscint LTD
NYSE
6.25
6.75
'0.25
'11.00
'11.008
'0.00
0
(I)
0
0
ELRNF
Elron Electronics NASDAQ
I
TAD
Tadiran
NYSE
'28.00
'28.12
'0.12
z
CMVT
Comverse
NASDAQ
'36.61
'13.75
5
z
ISL
First Israel Fund NYSE
'11.61
'12.25
'0.64
(I)
•
I11
INSULATED GLASS REPLACEMENT
PICTURE WINDOWS, DOOR WALLS, ANY SIZE REPLACED
• Storm Doors • Screens • Windows Repaired
• Laminated or Tempered Glass • Plexiglas
•Vinyl or Wood Replacement Windows
I
m
co
building if prices go down.
The drop in the number of
building starts indicates that
builders are already starting to
put projects on hold.
Through November there was
a 38 percent drop in building
starts of Ministry of Housing and
Israel Land Authority proper-
ties.
In actual numbers, there were
16,921 housing starts through-
November.
According to Deputy Housing
Minister Porush, the ministry
sold only 38,000 units in 1996,
compared with 46,000 in 1995.
In all, it is estimated that there
will be 44,000
building starts
in 1997, com-
pared with
46,000 this year
and 63,000 in
1995. This
seems to repre-
sent developers'
wait-and-see
approach.
And the re-
strictions the
Bank of Israel
recently im-
posed on banks'
financing of real
estate are also
an important
factor in the building slowdown.
The superintendent of banks,
Ze'ev Abeles, has limited the real
estate sector of the bank's over-
all loan poi (folio to 20-25 percent.
Banks that overstep these re-
strictions are required to in-
crease their loan-loss provision
by 4-8 percent.
C)
m
C
Z
r"
STARTERS • ALTERNATORS • FAN BELTS • FLOOR MATS • SEAT COVERS • JUMPER CABLES • BRAKE SPECIAL • WIPERS TI
0.39
Source: Allen °lender, Prudential Securities,
Weit Bloomfield.