tag:blogger.com,1999:blog-20257999.post2819550757021794500..comments2024-03-29T06:05:20.562+03:00Comments on Life in Israel: Kahlon wants to control the private rental marketRafi G.http://www.blogger.com/profile/00699851287106903971noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-20257999.post-49821423775741751902015-05-21T11:41:13.212+03:002015-05-21T11:41:13.212+03:00On a country-wide scale, supply may go up if there...On a country-wide scale, supply may go up if there is no rent control, but the situation in BS shows that it doesn't help established neighbourhoods at all. Now that Gimmel is in full swing, prices in Aleph are sky-rocketing. 2-3 room apartments going for 3500+. As little as 2.5 years ago, when I made Aliyah, prices were much better. 3-4 room apartments in the 4000 range.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-20257999.post-64113471800007203182015-05-21T09:44:55.320+03:002015-05-21T09:44:55.320+03:00I think Rafi is right in that the ultimate goal is...I think Rafi is right in that the ultimate goal is to provide incentive to sell properties owned for additional income. As to the side effect of reducing new building, in state-controlled Israel it should (could) be easier to get new housing projects going at the same time. That, to me, seems to be Kahlon's plan - will it work or not...?Shlomo Gorennoreply@blogger.comtag:blogger.com,1999:blog-20257999.post-15171903477687005492015-05-20T21:41:13.747+03:002015-05-20T21:41:13.747+03:00They tried this for decades in NY. While it helped...They tried this for decades in NY. While it helped a few individuals, it also reduced the incentive for people to build new apartment buildings, thereby reducing the supply, and raising the overall rents for everyone. A good idea on the surface,, but with unintended consequences.Ari E-Bhttps://www.blogger.com/profile/07719469110086487727noreply@blogger.comtag:blogger.com,1999:blog-20257999.post-16692541812985980002015-05-20T21:39:58.574+03:002015-05-20T21:39:58.574+03:00I really thought that the one and only good thing ...I really thought that the one and only good thing about Kachlon was that he understood how the economy works, I guess I was mistaken. Hope that he enjoys his party's single term in office (however long it will last)Michael Sedleyhttps://www.blogger.com/profile/02684514303911193073noreply@blogger.comtag:blogger.com,1999:blog-20257999.post-48591157749678773252015-05-20T17:37:22.075+03:002015-05-20T17:37:22.075+03:00Rent control has been tried many times in America....Rent control has been tried many times in America. There is broad consensus from both liberal and conservative economists that rent control does not work as it winds up decreasing housing supply as their is less incentive to invest in constructing new buildings or repairing old buildings. When housing prices are high that means that there is too little supply in relation to demand. What is needed is to increase supply, but rent control decreases supply. There are many liberal politicians that for political reasons are for rent control - but even the liberal economists say that rent control does not work.<br />The only real solution to the housing crisis in Israel is to increase supply by encouraging the building of new apartments and houses. An increase of supply in relation to demand will decrease housing prices - that is simple supply and demand economics.<br />chaim yankelAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-20257999.post-9969563231535422482015-05-20T17:07:33.715+03:002015-05-20T17:07:33.715+03:00it seems to me the housing index is an average of ...it seems to me the housing index is an average of some sort, in a local market a landlord might be able to do much better than the overall index.Rafi G.https://www.blogger.com/profile/00699851287106903971noreply@blogger.comtag:blogger.com,1999:blog-20257999.post-47785076945112092992015-05-20T17:04:49.908+03:002015-05-20T17:04:49.908+03:00In my non-expert opinion, tying the allowable rent...In <i>my</i> non-expert opinion, tying the allowable rent increase to a housing index would address (if not perfectly) the issue of not being able to raise rents despite rising housing prices.yoni r.noreply@blogger.comtag:blogger.com,1999:blog-20257999.post-17720950530900962462015-05-20T16:03:23.479+03:002015-05-20T16:03:23.479+03:00I agree - not to mention that, since the demand fo...I agree - not to mention that, since the demand for apartments is so high, there is virtually nothing stopping the landlord from raising the rent under the table. As far as taxing rental income, however, that proposal seems to ignore the rather common situation of someone who owns a single apartment and for whatever reason rents it out and rents somewhere else. In this case the rent is not really income - I wonder if the proposed law makes an exception for such a case?dlzhttps://www.blogger.com/profile/08269900740743979382noreply@blogger.com