Building Sales October 22, 2018 at 12:18 am
In other words, they will fall to less than apartments. There will be a redistribution of apartments for rent in favor of contractors. A flat for sale in the buildings constructed at a reduced scheme would not be cheaper, because the same contractors will not engage in charity, bringing down prices on goods if the goods purchased. Here is an example of the ineffectiveness of such measures to end consumer. Several years ago, the VAT in Israel was 18%. Lowered it a few times and each time the next day, after dropping all retailers suddenly announced the events and sales. A week later, 'events' ended, and next month you may have read in newspapers about the next general rise in commodity prices. That is, the consumer does not benefit from tax cuts.
He can only win with a decrease in demand or increasing competition in the market. And for that, or people have to go from Israel or the government will launch a major program to address this issue, including the allocation of land for the construction, improvement number of jobs on the periphery, providing significant benefits to buy or build the first shelter. But it is out of the realm of fantasy or of a revolutionary situation. And, since neither the prerequisites nor other scenarios are not, and declining demand for real estate in Israel is not supposed to. Housing supply is limited resources and inadequate on government measures to solve the problem. Those changes, which are now seeking the government laying the foundation for increasing the availability of housing in their own medium and long term, that is the result we will see, maybe in 2-3 years at the most optimistic scenario. Thus, in the foreseeable future, housing prices in Israel will not stop, and affordable housing can be purchased only while the periphery. But for many it means moving and searching for new income. AND the million dollar question that was asked in the beginning of the article is already in a different way, namely: As he moved away from the center of the country, maintain the same level of family income? That's more than a real question, the answer to that may, but do not want to do politics. Roman Mager MBA, Realtor
