Dr. Aaron Lerner - IMRA:
"You can have whatever you wish. But your neighbor will get twice what you
get."
"Then poke out one of my eyes."
Old Russian joke
Here's the problem: The army of contractors who will implement the various
construction program are going to make money. Sure, they will bid against
each other but they won't work for free. And for the radical lefties the
idea that private companies are going to make money is simply unacceptable.
Who then, in the eyes of the radical lefties, should build? Miserably
inefficient government corporations with government construction workers?
The short term question: given that the protest movement is in part a form
of summer vacation entertainment will it last the whole summer regardless of
what Netanyahu does?
And the true question: will any of this matter if Netanyahu succeeds with
his plans? Will this ultimately strengthen the Likud in the elections?
And a prediction: when apartment prices drop the media will feature stories
about the couples who are stuck paying mortgages for the next twenty years
for apartments that they purchased when prices were at their peak.]
PM Netanyahu's "Affordable Housing" Plan
(Communicated by the Prime Minister’s Media Adviser)
Prime Minister Benjamin Netanyahu, in cooperation with Finance Minister
Yuval Steinitz, Construction and Housing Minister Ariel Atias and Deputy
Minister Gila Gamliel, this morning (Tuesday), 26.7.11, presented a plan to
reduce housing prices.
The goal of the plan is to ease conditions for the apartment-buying public
and provide a significant response to the jump in housing prices. The plan
focuses on young couples, discharged soldiers, students and other
populations.
According to the plan:
Cheaper land for buying apartments – A 50% discount in the price of land
will be given for the construction of apartments, in "price for tenant"
tenders. In these tenders, contractors compete for the lowest price to be
offered to those purchasing the apartments. Preference will be given to
allocating apartments for young couples, discharged soldiers and
national/civilian service graduates.
Reduced-cost rentals – The State will initiate the construction of
apartments for long-term rental at reduced cost, with a 100% discount on the
land. The discount will be given to the contractor that offers that lowest
price to renters.
Solutions for student housing – The state will provide free land for the
construction of 10,000 new dormitory units for students. Thus, rent for
students who currently rent on the open market will be significantly
reduced.
Reduction in public transportation costs for students – In order to open the
housing market to students outside city centers, an immediate 50% rail and
bus discount will be provided.
In addition to the foregoing, the Israel Land Administration reform and the
national building and planning committees law will be completed in the
coming week, thus providing for the large scale marketing of land and the
rapid and efficient planning of housing units throughout the country.
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IMRA - Independent Media Review and Analysis
Website: www.imra.org.il
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