Bitter news for young people (Photo: ShutterStock)
If until today the young people felt that they had won the lottery, today it is already a fine award:
you will also pay tens of thousands of shekels more for the win - and the duration of receiving the apartment is also lengthening, as the land being marketed is less and less ready for construction, due to planning problems.
As published yesterday, the discounted apartment plan is going to undergo several fundamental changes - which will make it hundreds of thousands of shekels more expensive for the young and homeless couples.
Contrary to the plan of the previous minister, Ze'ev Elkin, after the changes come into effect (probably will not apply to the upcoming lottery that will be launched, as announced yesterday, immediately after Passover) the benefit will be calculated according to the value of the apartments at the time the tender was published for the contractors - and not as it was before according to their value , which always remains constant based on December 2020;
We will emphasize that since then, the price has jumped by dozens of percent which will now be passed on to the young couples.
The main change that costs us hundreds of thousands of shekels
One of the main changes that are going to be made, is the change in the auction method for Israeli lands, the framework of which the discount for the winners is determined.
As I recall, in the plan of the former minister Elkin, a discount of 20% from the price of the December 2020 appraisals, up to NIS 300,000, was set.
Whereas now, it has been agreed between the Ministry of Construction and Housing and the Treasury that the discount will be 25% of the current appraisal price - up to NIS 500,000.
Maybe at the first moment, when you look at the numbers, it sounds like it's a benefit, but make no mistake.
From an inspection conducted by the young couples' representative for housing, it appears that the housing price index from December 2020 to February 2023 increased by no less than 32.9%, which greatly increases the price from which the discount will be derived and reduces it significantly.
Thus, the inspection shows that apartment prices in Goldknopf's plan will be over 26% on average compared to Elkin's plan.
how much is it in money
In accordance with the above information - the representative of the young couples conducted another test, to verify what the price differences will be in the apartments drawn by lottery.
They took the price of the appraisals in Elkin's program according to data published by Rami, added 32.9%, as mentioned the increase in housing prices from December 2020, subtracted the The discount that the new Minister of Construction and Housing, Goldknopf, plans to give to the winners, and this is what came out:
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Incoming Minister of Housing Yitzhak Goldknopf and outgoing Minister of Housing Ze'ev Elkin at the ministerial exchange ceremony, Jerusalem, January 1, 2022 (Photo: Flash 90, Yonatan Zindel)
A 4-room apartment in Netanya, which under Elkin's plan cost NIS 2,000,000, will cost NIS 2,558,444 in Goldknopf's plan - a difference of almost 28%.
A 4-room apartment in Be'er Sheva, which under Elkin's plan cost NIS 1,064,173, will cost NIS 1,325,893 in Goldknopf's plan - a difference of almost 25%
The test was conducted on the basis of a 4-room apartment that includes a parking garage and a balcony.
The differences between Elkin's plan and Goldknopf's new plan (photo: screenshot, courtesy of Tal Zakaria - the Facebook group News from the real estate market)
In the attached image above you can see the full table of prices and gaps.
Here is the place to mention that even in Elkin's plan, there was a significant increase in the prices of the raffled apartments compared to the mythological "price for the tenant" plan, and now the young couples are receiving another blow from the new minister.
One way or another, it seems that the rampant inflation is accompanied by a large and significant cost of living component for the lucky ones who will be lucky enough to win the discounted apartments - and this is an increase of about 26% in the prices of the raffled apartments.
Regarding these changes, the former Minister of Construction and Housing, MK Ze'ev Elkin, published the following on his Twitter page: "A serious mistake by Goldknopf, the young couples will now pay hundreds of thousands of shekels more for the apartment, the heads of the authorities will approve fewer construction tenders because they took What is the aid, the public lost, the treasury officials won, Goldknopf sold us to the treasury officials, all that remains is to find out what he got from them and for whom?"
For the previous generation - 100 salaries;
how much today
Attorney Alon Kenninger, the representative of the young couples on the issue of housing in the Knesset committees, says that "while the housing crisis rises and rises, we see the Israeli governments increasingly diluting the quality of their plans for affordable housing.
Unfortunately, the news we are getting from the new Minister of Construction and Housing is that the State of Israel wants to continue to enrich its coffers at the expense of the young couples in the State of Israel.
"
"We point the finger of blame at the State of Israel, the one that controls 90% of the land, is the one that is responsible for land marketing, taxation policy and also for issuing building permits through the local authorities
.
We all hope that the property minister's plan will change and not be transferred as it is presented today, we strive for a proper ratio between the average income in the economy and the prices of apartments built on state land"
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