One figure is going to annoy you: the state's revenue from the sale of the land is going to amount to NIS 40 billion at the end of this year - a historic record.
Where does this money go?
You guessed it right.
Not for building the infrastructure, not for public housing, and not for solutions for young couples.
All these billions go to closing the country's deficit.
This is such a high amount that even the deficit in the state coffers has long since become a surplus.
Do you understand the absurdity?
Apartment prices are rising, the state coffers are filling up, and young couples are being pushed out of the possibility of purchasing a home.
Let's explain how we arrived at these numbers.
Between 40-60% of the value of the apartment is the price of the land.
Over 90% of the land is owned by the state.
The land is sold by the Israel Land Authority through tenders.
The method of auctions that is practiced today is "the highest bidder".
Whoever offers the highest price for the land wins, which pushes up the land prices and with them the apartment prices.
So it seems that everyone is comfortable with the prices continuing to rise - for the bank, for the state, for the contractor who purchased the land, for everyone - except for those who don't have an apartment!
This bidding system must change.
For example, as suggested by the Contractors Association - the winner can be chosen according to the average price among all the offers.
The state's revenues will indeed decrease, but the state can afford it.
We've already paid enough, haven't we?
were we wrong
We will fix it!
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