Sami Peretz, themarker.com
Appreciative presentation held earlier this week, Prime Minister Benjamin Netanyahu's housing policy finance minister Moshe Kahlon, including project price occupant, was fashionably late years. 2018 housing prices actually declined by 1.3%, however, Netanyahu praised the "trend change" in the housing market when the price has already managed to rise by 2.6% -2019.
The goal, of course, would encourage rather than plunge into the depths subsidized mortgage program as do the Bank of Israel, the State Comptroller's Office (former auditor, at least) and the Ministry of Finance - where killers from different aspects of the program. One day, the effects of the program will be investigated, and will yield some interesting conclusions about program effectiveness, cost and impact on the gaps and distributive justice.
There is a chance the housing policy of the Netanyahu government in recent years was better than just blue and white voters. The results of the Knesset elections in September 2019, blue and white achieved higher rates of voting Likud towns like Kiryat Ono, Ramat Gan, Even Yehuda, Herzliya and Binyamina. Occupant price auctions assumptions of these communities were among the half a million to a million shekels - highest tenders issued under the program.
In contrast, lower assumptions monetary terms given several Likud strongholds - Dimona, Mitzpe Ramon, Beit Shemesh, Ariel, Kiryat Shmona and Ashkelon, with a discount of 100-200 thousand shekels to the apartment. There is another place that the assumptions which were very large and reached 530 thousand shekels apartment - Givat Olga neighborhood where he grew up window.
These findings are statistically validated, because no one information about the voting patterns of homebuyers. Many home buyers do not live in the community where they bought an apartment, and in towns protruding particular party, still has a lot of the other party's voters. But if it is clear that the Likud has a protruding peripheral areas and central cities white blue-based, it is easy to conclude who enjoys more.
This is not the only element that works in favor of the blue and white voters: even plan 38 projects work more in favor of owners of apartments in high-demand areas - Tel Aviv, Herzliya, Ramat Gan - blue and white communities which receive much higher voting rates than those of Likud. This is obviously not a policy politically oriented, but consequential policies.
White blue higher voting rates higher deciles, and the same percentage shareholding assets in areas of high demand, and it can be assumed that they have a relatively high equity allowing them to buy an apartment or Sea Galilee Kiryat Ono - places where discounts the price occupant are higher.
Prime Minister Benjamin Netanyahu and Finance Minister Moshe Kahlon Photo: Marc Israel Sellem
Housing policy of the Netanyahu government, which led Kahlon last five years, relied on several elements: the marketing of land massive projects occupant price that can be contractors off the ground for an undertaking to sell affordable apartments for those eligible taxation of investors in the apartments, and promotion - even if slowly - the urban renewal projects, including the plan 38.
Housing policy that benefits the different populations in active and passive, and sometimes contrary. For example, sale of apartments discounted price occupant benefits the purchaser of them, but in cases where the community is flooded soils and apartments, is more difficult to sell apartments, which makes it difficult for owners of existing properties. However, in the demand for the center has very little occupant price projects and will not affect the market continues to cope with high demand and rising prices.
List of beneficiaries of this policy involves primarily the few who bought apartments in the price occupant (about 33 thousand), but among them there are those who enjoy more or less enjoyed. Those who bought high-demand areas enjoy a big discount of half a million to a million flat. These are people who have equity of hundreds of thousands of dollars.
Periphery equity required is much lower, and the assumption given very low. Numbers: buyers of apartments in the project Galil Yam Herzliya receive discounts of up to 800 thousand million, compared to market prices in the region. Purchasers of apartments in Kiryat Ono received discounts of 620-852 thousand shekels to the apartment. Even Yehuda assumptions were 407-544 thousand shekels to the apartment. Kiryat Motzkin assumptions were 456-626 thousand shekels to the apartment. Average discount for all apartments subsidized mortgage project is 285 thousand shekels. Hence, there are those who have received three times as big discount even more than the average.
These gaps have raised concerns that the Justice Department is unlikely situation of injustice in the distribution and use of state resources damaged. Justice Ministry sources said this week that "high discounts are unreasonable. These days, a check of the issue with the ministries responsible for the implementation of the plan to reach agreement on an outline that would limit the number of discounts."
Operations per occupant focused mainly in the periphery, and in this sense can be defined as a project turns to areas where the Likud controls. Periphery easier to locate land and promoting large building projects than the large city centers and desirable. It dictates more tenders there, and some tenders’ central cities. But are major benefits to the purchaser in the central region, which is where another big question mark over the project per occupant.
Kiryat Motzkin, price occupant Photo: Doron Golan
Many question marks: This is an expensive project costing $ 7 billion now spent very few buyers, a controversial lottery system, the technical specifications of the apartments have been criticized by buyers, and especially - it is a difficult project claim that it is based on distributive justice or a fair mechanism. Also that it is a heavy cost in Israeli public that topic addressed a few, also because the buyers are not truly needy or poor - according to CBS data, average net income home buyers occupant price is 17,178 per month, which is very similar to the average net income of all homebuyers in Israel.
One of the arguments against the project is that many buyers of apartments in remote communities not to live in them, but to enjoy assumption, then they rent the apartment and renting elsewhere. This process is difficult to prevent because there is a limit state intervention, but it only highlights the problematic nature of the project, the effectiveness and the central question: what is its purpose? That the next government will have to respond. This current cannot stop it, certainly not in the midst of an election campaign in third.
post Scriptum
So, what is the purpose of the price occupant? Lower housing prices? To provide apartments for young couples. When the window was launched with this project, these were indeed the targets. But he acted in a manner reminiscent of some parents of a young couple who are telling the kids: If you buy an apartment, you will receive help. Parents do not offer help finance a trip to New Zealand, but only for the purpose of buying a home. It's called a conditional grant. Thus, pushing the young couple to buy an apartment, because if you do not do it - not benefit from the grant.
Per occupant must perform re-route calculation Photo: Moti Hillard
Kahlon acted in a similar way: giving discounts on the purchase of apartments and put the dream of buying a flat top priority for young couples. He allocated most of the land were sold price occupant, but it was not enough, and it came at the expense of other solutions of housing for rent or private building market prices. The result: Housing prices have fallen, the number of homebuyers in the project is too low, and the cost of the project relative to the number who benefit from it too high. They also added the lack of distributive justice between those who received a rebate million, anyone who receives a discount of 100 thousand shekels and who has not received at all. The result: project must make calculating a new route.