BUY OR RENT
One of the main problems of the Israeli housing market, according to Prof. Elia Werczberger of Tel Aviv University, is that few new house is built for renting. It results in a situation where there is an increased demand for apartments to be rent but not enough apartments in the market, which will push up prices as people are forced to rent on the private market which is unregulated.
"There is a significant house renting stock that now is vacant. A lot of apartments have been bought by people as an investment or weekend housing," Werczberger said.
He added that if the treasury would be willing to provide tax exemptions for people or corporations that are willing to rent, allowing them not to pay tax on their income from renting, then that would provide a very significant addition to the housing stock.
However, current regulations favor owning over renting, Werczberber said, "In order to solve the housing problem you would have to have a complete change in the housing policy."
He doubted whether Netanyahu or anyone else would be interested in imposing a housing policy that would lead the prices to decline and the property to lose some of its value.
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