Discount Housing Buyers Can Sell Units Upon Key Handover

A housing development in Rishon LeZion, featuring 68 apartments under the "Discount Housing" program, is set to begin construction after Almogim company received a building permit. The permit was issued nearly four years after the Israel Land Authority initially marketed the land.

Almogim acquired the plot, spanning over 2.4 dunams in the new Hatzabim neighborhood, from another company, Binianim VeNativim, a year ago. Almogim paid NIS 37.7 million for the land, significantly more than the NIS 16.5 million Binianim VeNativim originally paid, plus NIS 12.6 million in development costs.

Of the 68 apartments, 54 will be subsidized under the "Discount Housing" initiative, with the remaining 14 offered on the open market. Almogim had already signed sales agreements with 50 buyers before receiving the permit, selling 47 subsidized units and 2 open-market units. An additional 5 purchase requests have been signed, including 2 for the open market.

Crucially, under the program's regulations, new homeowners will be permitted to sell their apartments shortly after moving in. This means buyers could potentially sell their units in 2029, around the same time construction is expected to be completed, allowing them to profit from the state subsidy without ever residing in the property.

The article notes that the "Discount Housing" program, which offers significant subsidies, has been criticized for resembling a lottery, particularly as recent tenders are being prioritized for reservists, potentially reducing opportunities for other eligible individuals.