A client paused during our conversation and admitted what had been driving her thinking for months. “A lot of what’s behind this is fear,” she said. “Fear that eventually rent will go so high I won’t have anywhere to go.” She had been researching land purchases, imagining that owning property would solve the anxiety she felt about rising housing costs in Israel. But as we walked through her actual finances, a different picture emerged.
The appeal of ownership during uncertain times
It is natural to want the security of ownership, especially when living expenses feel unpredictable. For Americans living in Israel, the combination of rising shekel-denominated costs and a weakening dollar can amplify that anxiety. Rent increases feel like a threat to long-term stability, and buying property can seem like the obvious solution. But fear-driven decisions often overlook what is already working.
The hidden cost of concentrating everything in one asset
This client had managed her money carefully for years. She maintained diversified U.S. retirement accounts, kept spending disciplined, and structured her living situation to include rental income that offset a significant portion of her housing costs. Her net rent was manageable and well below market rate, and she lived near family.
Buying land and building a home would have required liquidating most of her invested assets and concentrating her net worth in a single illiquid property. Construction costs in Israel have climbed steeply, and the inexpensive labor many relied on in the past has largely disappeared. What felt like a path to security would have left her with no financial cushion, no diversification, and years of construction uncertainty.
When the situation you have is better than the one you are chasing
Fear of future rent increases is a real concern. But trading a functional, affordable living arrangement for an all-or-nothing bet on property development is rarely the right answer. In my experience, clients who preserve diversification and liquidity tend to handle life’s surprises better than those who concentrate everything in one asset, even when that asset feels emotionally safer.
Sometimes the best financial decision is recognizing that what you already have is working. If rising costs or housing uncertainty in Israel are pushing you toward major financial changes, review the full picture with a professional before acting. Schedule a call or reach us at 02-624-2788.
DISCLAIMER: Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.profile-financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. Accounts carried by Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates provide tax or legal advice.
Published May 19, 2026.