For many, Jerusalem offers an attractive real estate investment which also doubles as a wonderful yomtov apartment and vacation getaway. While a growing number of North Americans and Europeans have been buying a piece of the holy rock for fulfill their dreams, for the local residents, the trend has driven housing prices so high that fewer Israelis can even think of ever owning an apartment in the capital.
Jerusalem City Hall is now working to create new facts on the ground. In the past, many believed City Hall was happy with the vacation homes, luxury properties that sit empty almost year round, except for Sukkos, Pesach and perhaps winter break or summer vacation, since these home owners pay their taxes and do not require municipal services.
Well this is not the case and the reality is the ghost homes are not beneficial to the city or its fulltime residents, and Mayor Nir Barkat plans to take serious measures to encourage the homeowners to rent them out. City Hall plans to double the arnona property tax on the luxury vacation homes, those that sit empty year round.
At present, it is unclear how the city will determine which homes are empty or occupied, and how long they must be inhabited to comply with the new regulation. There are an estimated 5,000 such homes in the capital today Israel Radio reports.
(YWN – Israel Desk, Jerusalem)
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3 Responses
“At present, it is unclear how the city will determine which homes are empty or occupied, and how long they must be inhabited to comply with the new regulation.”
I’ve read that they will be able to determine if someone is there by checking the usage of the utilities (water, electricity, gas). Seems pretty simple, but then again, people that wanna rent out their properties short term in order to be to use it during the holidays, might not be able to find someone so easily, and will be hit with an unlawful double-tax. That is, the luxuriousness of the apartments usually make it very hard to find someone willing to shell out big bucks for them.So people are being coerced to rent it out even at loss, in order to stop an even bigger loss.
The real solution to high home prices caused by low supply is to build more houses. Israel also needs a professional rental market. That includes entire buildings and complexes that are entire and exclusively for rent. Also including a super and a laundry room. Roof top and machson apartments are clearly inadequate, as is people who are temporarily away and renting out their home.
“the trend has driven housing prices so high that fewer Israelis can even think of ever owning an apartment in the capital.”
“Mayor Nir Barkat plans to take serious measures to encourage the homeowners to rent them out.”
How does that resolve the issue?