In an effort to assist young couples in buying their first apartment, MK (Yahadut Hatorah) proposed a bill that would permit a couple to buy a first apartment without paying value added tax, which is currently 17%.
The bill would have only applied on a modest home, one with a price of 1.5 million NIS ($419,000) or lower. In addition, it would have applied to young married couples married ten years or less and couples with an “eligibility certificate” from the Ministry of Housing.
Eichler feels that something must be done to drive down the price of an apartment for couples seeking to purchase a modest place to live. He pointed out that due to the complicated procedure in getting a mortgage accompanied by the high bank interest have resulted in a significant decline in the number of eligible young couples that have actualized their right to purchase an apartment.
51 MKs opposed the bill while 28 voted in favor.
(YWN – Israel Desk, Jerusalem)
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4 Responses
a “right” to buy an apartment
The problem with entitlements is that people start to feel very “entitled” which causes great economic distortion
You have a “right” to learn Torah and do mitsvos. There is no such thing as a “right” to own a flat.
Free up government land for building, make plans, and have contractors make per meter bids. The lowest bid per meter gets the contract and has to sell the apartments at that per meter bid price.
Just for the record: a) Interest rates are very low right now and b) NIS 1.5 million only buys a “modest” apartment in Jerusalem or Bnei Brak. Even in Beit Shemesh that kind of money can get you a beautiful, large apartment, if not a house. c) There are still places where $140-150,000 can buy you a nice apartment, you just have to look out of the big cities. The next generation of young people are going to have to start populating the outlying areas. The smart ones (or their parents, at least) already know this.
He’s doing something that would benefit ALL tzibburim in Israel, and was shot down presumably because he is Charedi. Finally someone suggests a good idea to help the young and it’s rejected! I hope the tent-dwellers of last head are Makir Tov to him for it.