Kahlon's housing solution: The Minister of Finance announced his housing reform this evening [Wednesday], when he presented the first phase of the reform, which aims to increase the supply of housing and curb the demand for investment apartments.
According to the set of measures, the purchase tax for investors will increase to 8%-10%. Housing units defined as 'apartments on hold' - their duration will be reduced from 24 months to 12 months in order to release the stock of apartments on hold to the market in the short term, and to assist in the faster advancement of housing transactions.
Another step concerns inherited apartments. Currently, those who inherit a single apartment are entitled to sell it exempt from capital gains tax, regardless of the number of apartments they own and without a time limit. According to the proposal, the exemption period will be limited to 24 months from the date of receipt of the apartment.
Kahlon's plan also deals with increasing the supply of housing. Residential construction on publicly zoned land will be promoted and a shortened route will be taken for the division of apartments for rent - while maintaining appropriate living space. And the "Price for the Inhabitant" program will be expanded, with discounts for "first apartments" increasing.
According to the plan, construction in rural areas will be encouraged, barriers to residential construction in minority communities will be removed, and agreements will be promoted to remove barriers to large housing complexes, within the framework of which approximately 95,000 housing units will be built.
The Minister of Finance said today: "Today we are taking responsibility and presenting an unprecedented government reform," Kahlon said, "and at the same time a considered and balanced one that will address both the supply and demand sides." Prime Minister Netanyahu added: "There is a new, bold path here, and in my opinion, one that will succeed. We will address the three means of production - land, manpower, and capital.".
Join the Haredim 10 Facebook page >>
Join the X page of Haredim 10 >>
Want more news, videos and stories? Join the Haredim 10 WhatsApp channel >>
