Introduction: Your Home as a Financial Instrument
Most Israeli families view their home as shelter. A place to live, nothing more. But in the modern financial world, your home is your largest asset - and you should know how to leverage it.
Statistic 1:
87% of an average Israeli family's wealth is in their property (not stocks or pension funds)
Statistic 2:
Only 23% of these families actively use this asset (leverage, refinancing, investments)
The Conclusion: You own a property worth millions, but you are not using it. It is like keeping a Ferrari in the garage while driving a Peugeot.
What is "Family Wealth Management"?
It is not just finances. It is a family strategy designed to maximize value from existing assets, transfer wealth between generations intelligently, and build long-term financial security. Just as a company manages its balance sheet - so should your family manage its household.
Chapter 1: Cash-Flow Refinancing - Lower Monthly Payments
How to create breathing room for families drowning in loan payments
What is Cash-Flow Refinancing?
The Concept: Take short-term, expensive loans (bank loan at 10%, credit card at 18%) and replace them with a long-term, low-cost loan (mortgage at 5%). The Result: 40-60% reduction in monthly payments!
Numerical Example
After Refinancing:
Why You Should Not Go Directly to the Bank
The Problem: Bank employees are incentivized to sell expensive products (CPI-linked tracks, high interest rates). They will not recommend the cheapest option - because they would lose their commission!
RealFix: We represent only you. We submit to 3-5 banks simultaneously, run interest rate auctions, and ensure you get the best possible terms.
Chapter 2: Intergenerational Transfer - Helping Children
"Paper-rich" parents - How to help children without breaking savings
The Familiar Scenario
The Parents: Property worth ₪2.5M, mortgage ₪800K. On paper - wealthy. But no cash available.
The Children: Want to buy their first home, need ₪300K for down payment. They do not have it.
The Question: How do parents help without selling the property or depleting pension savings?
The Poor Options
- • Withdraw from pension fund → 25% tax
- • Sell property → Forfeit appreciation
- • Reverse Mortgage → 3x more expensive!
The Smart Solution
- • Directive 451: 70% LTV on existing property
- • Standard mortgage at 4-5% interest
- • Child repays → Debt decreases
Numerical Example
Enough to help 2 children (₪300K each) + consolidate debts (₪200K) + reserve
The Danger: Reverse Mortgages
Banks will push Reverse Mortgages because they are 3x more profitable! But for you? The debt grows daily with compound interest, and after 10 years heirs receive only the leftovers.
RealFix: We first check if you can take a standard mortgage (cheaper). Only if there is no other option will we suggest a Reverse Mortgage with the best possible terms.
Chapter 3: Cross-Border Investments - Capital Export
How to finance property purchases abroad without a foreign mortgage
The Problem: Israeli Banks Do Not Mortgage Foreign Properties
The Barrier: Israeli banks cannot provide mortgages for apartments in Georgia/Budapest/Greece. This is due to Bank of Israel regulations and enforcement challenges.
The Result: Most investors need €100,000 in cash → Most investors give up.
The Solution: "Money from the Blocks"
The Method: Take a loan against your Israeli home (4-5% interest) → Buy cash abroad → Enjoy 10-15% cash discount!
Withdraw from Israeli home (70%)
Purchase cash + discount
Repay from rental income
Example: Budapest Purchase
What can you buy with ₪600,000?
- • 3 apartments in Budapest (€200K each)
- • Or 5 apartments in Georgia ($100K each)
- • Monthly rental income: ₪7,000-10,000
- • Mortgage repayment: ₪3,300
- → Net Profit: ₪4,000-7,000/month!
The Danger: "Buying Blind" Abroad
The Problem: If you go alone, you will pay 10-15% more for the property, get a problematic contract, and a poor management company that will steal 30% of your income.
RealFix Full Package:
- ✓ Cheap financing in Israel (3-5 bank auction)
- ✓ VIP tour + Due Diligence in Georgia/Budapest
- ✓ Our lawyers + accountants (not strangers!)
- ✓ Remote management + monthly reports
Frequently Asked Questions - Family Wealth Management
Everything you need to know about leveraging your property for family wealth
Cash-Flow Refinancing is a process where short-term expensive loans (such as bank loans at 10% or credit cards at 18%) are replaced with a long-term, low-interest loan (mortgage at 5%). The result can be a 40-60% reduction in monthly payments. This is achieved by consolidating all debts into a single mortgage secured against your property.
Summary: Your Family is a Business
The world has changed. Your home is no longer just "shelter" - it is a financial instrument that can release capital, generate passive income, and transfer wealth between generations intelligently.
Cash-Flow Refinancing
40-60% reduction in monthly payments → breathing room for your family
Intergenerational Transfer
Help children without depleting savings → wealth for the family
Cross-Border Investments
Capital export abroad → diversification and higher yields
Manage your family this way. Start thinking like a CEO.
Ready to Assess the Financial Potential of Your Assets?
Let us conduct a "Financial Scan" of your assets together and build a personalized family strategy
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Legal Disclaimer
The information and simulations presented on this website are for illustrative purposes only and do not constitute a binding offer for credit or financial advice. Credit Approval: Subject to final underwriting, clean credit data (positive credit score), clean banking history, and meeting the threshold requirements of the financing institutions. Interest Rates: The interest rates displayed are estimates only, based on average market data, and may change at any time according to the client's individual risk profile and economic conditions (Bank of Israel interest rate changes / CPI). No Commitment: RealFix does not guarantee loan approval or the terms displayed in the calculator. E&OE.