The “Target Price 2.1” program was approved last Thursday by the Israel Land Authority Council, as part of which the state will provide assistance to young families purchasing new apartments throughout the country. Minister of Construction and Housing Wolf Elkin Addressed this today (Sunday), in an interview with Liat Ron on the show “Where’s the money?” On 103FM radio.
The minister said it was not a development of a new plan but an adoption of an outline they had been working on for several years: “We went for an existing plan to make the process effective. The plan addresses a problem I define as a land speculator. The housing market is a sham market. “From planning, through land marketing, to working hands and entry clearance for foreign workers.” Elkin added that building permits today belong to the state indirectly, through local authorities, and thus in fact benefit from controlling the housing crisis: It was not easy to convince finance officials to agree with my view. “
Minister Elkin added that the plan would require the state to give up the income from the land: “In such a situation, the state should take responsibility and say that it will not earn the money it could have earned from the land, but help the buyers of the apartments.” He added: “In the marketing method of the ‘target price’ that we set, an assessment will be made of the value of the new apartment at the prices of the end of 2020 in order to save buyers the price increase that occurred this year and may continue next year.”
In addition, the minister explained that a young family that will be entitled to the terms of the plan, and does not own an apartment, will receive a discount of 20% of the price of the apartment up to the amount of NIS 300,000. However, Sage Elkin stressed that the ‘Target Price’ program will not be implemented in the main demand areas in the country such as Tel Aviv, Ramat Gan, Givatayim and Ramat Hasharon. You will not see Tel Aviv and other authorities that are luxury areas with high prices as part of the ‘target price’, but most areas in the center of the country and in the periphery are included in this program. ‘target price'”.
With the announcement of the ‘Target Price’ program, Elkin spoke about the return of the lotteries that will allow young families to win the benefits he talked about: “Since this is a benefit whose demand is much greater than the number of apartments marketed, there is no choice. “One of the approved changes is that there will be a higher percentage allocated to locals. It is right to give those who already live in the same area a certain priority so that they can stay in their area of residence.”
Finally, the Minister of Construction and Housing emphasized that the aim of the program is not to lower housing prices, but to help young couples reach their own apartment: “Target price. ‘Target price’ is supposed to help young couples buy an apartment at a cheaper price than market prices, and start life in the State of Israel without counting on the ground. I am very happy that we will stop speculating on the land and help the young couples.” Regarding the steps that will lower housing prices, the minister said the only way to do so is by “building a lot more apartments”.
On the possibility of raising the apartment purchase tax, he said that “I, as Minister of Housing, do not raise or lower taxes – this is what the Minister of Finance does. We are in talks with the Minister of Finance about such measures, which aim to make investment in housing “At least it’s worth it. We want the apartments to reach those who need them first.”
Source: Maariv.co.il – כלכלה בארץ by www.maariv.co.il.
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