Encouraged by the government: the Israel Land Authority enslaves the citizens of the country - voila! Real estate

Over 90% of the land in the State of Israel is managed by the Israel Land Authority (Photo: ShutterStock)

If you didn't know, over 90% of the land in the State of Israel is managed by the Israel Land Authority - something that supposedly should have allowed every citizen in Israel to be entitled to a roof at a reasonable price.

This is not the case, however, the human right to housing is a basic right as part of human dignity, something that was even recognized in the Israel Land Authority Law, 1960. In section 2a(1) of the law, which defines the functions of the Israel Land Authority, it is established that the authority must allocate land " For residential purposes, housing within reach, public housing..."

- and they are completely influenced by government policy decisions, since about 65% or more of the price of the apartment includes the land component and tax payments. Although the law requires the Israel Land Authority to allocate land for the stated purposes, he does this mainly through auctions, a tool that directly causes housing prices to rise.

While in the years 2018-2020 the income of the Israel Land Authority was about 12 billion shekels per year for real estate marketing, in 2021 the income of the Israel Land Authority jumped to an amount of over 31 billion shekels and in 2022 this income is expected to increase to 36 billion shekels.

The Israel Land Authority has become a financial resource - a cash cow with the encouragement of the treasury, and this through a targeted policy, which comes at the expense of a policy, which is defined as mentioned in the Israel Land Authority Law, and is intended to give economic meaning to the allocation of real estate to the homeless and those entitled to public housing.

When the government wants to help, it knows how to do it

The Israel Lands Authority knows how to make lenient decisions, and thus the Israel Lands Council responded to the call to give priority in giving land discounts to members of the security forces, i.e. those who have served two years or more in the IDF, the prison service and the border guard.

The discount that was approved is dramatic and amounts to 10% of the value of the land, but the discount This applies only among minorities such as Arabs, Druze and Circassians, while excluding Jewish military veterans.

The strange result is that a young Arab or Druze, who serves in the prison service, or has served at least two and a half years in the army, is entitled to a discount of 90% of the price of the land, but a young Jewish Who served a full service, gets meager discounts that are getting eroded.

Illustration: A young couple dreams of buying an apartment in Israel (Photo: ShutterStock)

Thus, for example, a young couple in Rahat who meet the conditions of the decision are entitled to a lot for a zero amount of NIS 10,000, while a young couple, graduates of the security forces, will pay NIS 2 million for the land.

When the government wants to help, it knows how to do so with special decisions of the Israel Lands Council or by amending appropriate taxation articles, it only needs to establish policies and instruct the implementing agencies to carry them out.

The burden on young couples in the residential component adds to the burdens that already exist on every young couple who are required to pay for kindergartens, classes, tutoring and other activities, so that the free money available to them is being eroded.

Another section (2c) of the goals of the Israel Land Authority states that each year targets will be set for the marketing of housing units for affordable housing and the government, or a ministerial committee on its behalf, will set by March 31 each year a minimum target for implementation.

The governments have been talking in the media for years, but a real policy of lowering the price for those entitled to housing is not implemented in practice.

This housing is not a reality show, and the disgrace of a house lottery program must stop immediately (Photo: ShutterStock)

This housing is not a reality show, and the disgrace of a house lottery show must stop immediately.

Instead, a discount on the land price should be given to those who are entitled to it and everyone should be allowed to choose the place where they can and want to live - not to impose plans on them that both create false hopes for many and do not lead to the desired result, since housing prices continue to climb.

The public is groaning under the burden of mortgages and the situation is only getting worse in light of rising interest rates.

The real estate bubble could burst at any moment. The government must make immediate decisions - and give a significant discount to every homeless person in the land and taxation component. An

urgent policy is required to implement the real policy - enough talk, it's time for action.

Attorney Dodo Kochman, Secretary General of the Agricultural Union Movement (Photo: Tamar Matzafi)

The author is attorney Dodo Kuchman, who serves as the secretary general of the Agricultural Union movement.

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