Joulus Gazit & Co.


“When the Tax Is Raised, Solidarity Will Dissipate”

The populistic cries recently sounded in the media to raise the purchase tax on investment apartments overlook today’s prevailing situation, where there is simply no supply of real estate for construction. They also ignore the bureaucratic effect of the planning proceedings on housing prices, and attribute their rise to the purchase of investment apartments. In this opinion paper, Adv. Joulus compares the investment in residential real estate investment (perceived as a conservative investment channel) with investments on the capital market. This consequently further drives up residential apartment prices, in overlooking the financial security that this channel provides to many middle class families, particularly given the zero interest bank rates.
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