Haredi Scholars Thrive Despite Economic Pressures, Acquire Property

Despite recent economic restrictions and the cancellation of benefits, many Haredi scholars, known as 'avreichim' (full-time Torah students), are successfully managing their finances, saving money for their children's weddings, and even purchasing additional apartments. Israel Gutman, chairman of 'Got Plus,' a financial guidance organization, stated that avreichim are often more responsible and mature in their financial dealings than previously assumed, attributing this to a growing awareness and a shift in mindset over the past decade.

Gutman explained that avreichim are demonstrating creativity and taking personal responsibility to generate diverse income streams, often in partnership with their wives. This ingenuity, he noted, is a natural response to necessity, prompting innovative solutions for financial needs. He emphasized that individuals who are 'hungry' for financial improvement are more likely to find solutions, contrasting this with those who rely on illusory income sources like easy credit or loans without considering repayment capacity.

He also highlighted that the recent removal of eligibility for the 'Apartment at a Discount' program, intended to make housing more affordable, might paradoxically help many young couples buy homes sooner. Gutman advises couples to purchase property quickly after marriage, or even before, to avoid escalating rent costs and the difficulty of relocating from expensive areas to more affordable ones later.

Gutman further revealed that avreichim are significant depositors in interest-free loan societies (Gmachim) and are more likely to save for their children's weddings compared to non-avreichim. He pointed to behavioral economics as a factor, noting that even those with existing mortgages often manage to save, while some without such burdens struggle. He stressed that the key is for couples to collaborate on financial planning, holding weekly 'financial health' meetings.

Regarding investments, Gutman mentioned that some avreichim have successfully acquired multiple investment properties, often before the recent price surges. He recommended passive investments, such as index funds, to avoid disrupting Torah study, but acknowledged that owning rental properties can significantly alleviate the financial burden of weddings. Gutman concluded by asserting that divine providence, not government policies, is the ultimate source of sustenance for Torah scholars, encouraging them to maintain their values and focus on their spiritual and material well-being through diligent effort.