Key to the house/ShutterStock
Also today (Wednesday), the senior officials of the real estate industry and the decision makers in Israel continued to exchange views on the serious crisis in the industry that arose as a result of the war, on the stage of the Eilat Real Estate Center Conference 2024, in collaboration with Real Estate Media.
At the opening of the second day of the panel on the housing market Where Yehuda Morgenstern, Director General of the Ministry of Construction and Housing announced a pilot to compensate contractors for late delivery.
"We decided to come and give compensation," he announced.
"We checked how many contractors before October 7 deliver apartments on time. Over 50 percent of them are late, that is, they want to take care of the buyers because there is a tendency to come and sell the apartment quickly with the perception that it is at an attractive price, in the end, most of them do not pay for late delivery Because it's also good for buyers."
Yehuda Morgenstern, The Real Estate Center Conference in Eilat 2024 in collaboration with Real Estate Media/Now Media
Morgenstern continues and says that "the new model says - the contractor was late? You will pay. If the buyer did not sue and the contractor did not compensate, then the market does its thing. Those X percent that are paid to them, we offered to come and give compensation, between 50 and 75 percent is captured. The State of Israel like all A building in the country needs a budget. This is parked at the Treasury, during the last week I instructed to come and start a pilot in the north and south - Kiryat Shmona and Shlomi boulevards, there are over 1,000 apartments within this status, but there is the pilot for contractors who pay. We know how to find this budget A budget of hundreds of millions. A contractor who pays for the delay will receive compensation."
In the same panel, Carmel Shama HaCohen, the mayor of Ramat Gan, addressed the calls of the contractors to reduce the powers of the local committees.
According to him, "Those who try to take shortcuts and round corners encounter a professional rank that has full backing from the political rank to stand their ground. We know the entrepreneurs and know how to work with them. Those who are not clever with shortcuts, and use their talent and initiative, run fast in engineering with us, there is no They have a different agenda. We want to see more apartments in Ramat Gan so that the younger generation will have a place to live in the city, but not at a price that harms the quality of life in the city."
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"With no choice, the share of renters is increasing"
"The market is neither dangerous nor in failure," declared Uri Yunisi, head of the mortgage division at Bank Leumi, "there is no alternative but to buy apartments, but do it carefully, the main thing is to do the right thing and not jump beyond your capabilities."
According to Younisi, "All audiences are interested again, the second-hand market is back and the chains are starting to fall apart, the market is starting to heat up and there really is no other alternative."
In addition, Yunisi signaled to entrepreneurs to put a spotlight on the long-term rental market and said, "The difficulty in buying an apartment leads to an increase in the rate of apartment renters, the rental alternative is becoming more expensive. The young people say if we don't buy, we will pay more in rent."
Therefore, "the entrepreneurs should start thinking about a long-term rental market. The share of renters with no choice is growing and out of the addition of half a million apartments, it is taking a share. We keep the young people away from buying an owned apartment even though it is in our DNA."
Younisi stated in his words that in his opinion the state does not offer a regular plan for young people who wish to purchase an apartment, there is no long-term plan.
The young couples need and see a solution.
Winning government programs today is worth more, we are in favor of a price for the tenant or in favor of an alternative program, but it needs to get going and take care of the young couples.
Despite the prosperity of the mortgage market, Unisi believes that it will continue to grow thanks to the audience of foreign residents, and pointed out that there is a really big trend of communities from the USA, Canada, France and the UK, who buy projects together, in order to continue living together."
"We finished 2023 with a surplus of NIS 2 billion"
At the end of the morning session of the second day of the Real Estate Center Conference, the Director of the Tax Authority, Shay Aharonovich, was interviewed, "In the end, even though the state's forecasts were updated downwards, we ended 2023 with a surplus of NIS 2 billion.
January and February 2024 also ended with a surplus. In the end, even though revenue forecasts were revised downward, we ended up with a surplus of NIS 80 billion on the revenue side. The second quarter of the year will teach us better whether the economy manages to overcome this huge pitfall of swords Iron," Aharonovich pointed out.
Regarding the expenses as a result of the war, Aharonovitz estimates that "war reparations, if this configuration continues, will amount to 22 billion shekels, with the majority being indirect damage but also direct damage. Currently between 12-13 billion shekels. A large part is still ahead of us."
Aharonovich was asked what cuts are expected from the Treasury and said, "We are not in favor of jokers. The credit rating companies look at us and understand that there is a war here, so we are more interested in what will happen in 2025 and 2026."
Shay Aharonovitch, the Real Estate Center Conference in Eilat 2024 in collaboration with Real Estate Media/Now Media
- How does the recovery affect sales?
And what is expected in terms of the purchase tax?
"There is no doubt that there was a very sharp increase in the sales of contractors. I don't see it right now in the purchase tax data. But I must say that the first two months have not yet returned to the numbers of 2021, still in the numbers of 23. I estimate that the revenues will be higher. Appreciation tax and purchase tax have not yet returned For the numbers 21 and 22 in the area of NIS 14 and 15 billion, but I estimate that the revenues will be higher because probably most of the buyers postpone the payment because they can in terms of the law," said Aharonovich.
"The issue of purchase tax on residential apartments is a matter of housing policy and not fiscal policy. Lowering it to 5-6 will increase the revenue of the Tax Authority. On the issue of residential apartments, this is the policy of the Israeli government. If we lower it, we will bring in another billion, on the other hand, I understand the fact that it constitutes tool when it really decreased. When they raised the purchase tax, it decreased the number of investors."
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