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צילום: צפריר אביוב
Gov't approves new housing subsidies
Cabinet green-lights new plan meant to combat housing shortage; offers incentives for those looking to move to periphery
The government approved a new plan meant to increase available housing units and alleviate the shortage in apartments, which has become the plight of young couples in Israel over the past few years.
The plan will offer contractors incentives to turn would-be commercial buildings into apartment buildings, and will offer young couples choosing to reside in the periphery additional incentives to those offered today.
Prime Minister Benjamin Netanyahu said that "the solution to the housing shortage requires two things – a reform in the Israel Land Administration… and instating national housing boards."
The government, he added, will also work to "see housing units currently used for businesses reintroduced into the market as regular apartments… We are talking about tens of thousand of apartments, potentially which will go a long way to alleviate the shortage."
Netanyahu added that the government is considering offering the owners of such apartments that would be willing to make the change an exemption from Betterment Tax.
Finance Minister Yuval Steinitz added that should the move come to fruition "It will dramatically change housing prices in Israel within months."
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