This is weird, I went to BLOM today and they have never heard of this 5 years plan.Yesterday night i asked someone i know that did a similar plan in BLOM.
He said that he is freezing with them $200,000 for 5 years ... divided into 2 accounts:
They are giving him 16% on the LBP and 9.5% on the USD.
@walidos @freemind @Daltony
shadow1 Your anecdote is well appreciated and I will make sure to remember it when making future decisions. The alternative for me would be an apartment as I can use it if ISKAN failed to give me a loan in the future. The problem is that owners are requesting prices that do not reflect the current situation and the ones that are "la2ta" are in locations outside of my personal preferences. Buying a land would be a really long-term investment because if I do get one in a good location I would be putting all of my money in one basket.Let me quote to you an allegory given by Warren Buffet after the burst of the dot.com bubble. He said everyone knew the party will end at midnight, they were all gathered at the exits staring at the clock and waiting for it to strike midnight so they can make a run for their lives. Except the clock had no hands.
the same thing is happening right now. If you read what people said in this thread, nearly all expect a collapse when the clock strikes midnight yet the clock has no hands.
Now is not the time to be greedy but to protect your capital. Apartments in lebanon are not a good investment especially as a civil war is forever looming. Land is better. The reason banks are offering high interest is that they know something you are hesitating to acknowledge. Don't buy into the rumours that they have a liquidity problem.
The plan that I am currently studying is a portfolio one:
50% LBP 5 years plan in a saving account
5% cash at home USD
20% bank saving account in USD
25% down payment on a place with monthly installment & ISKAN when available. The deal would be that I get a key to the place and the contract should be in LBP to be protected and if LBP went down I still would be able to cover the rest in cash.