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Monday, May 5, 2014

New Home Sales Down 10% in March : Israel

New home sales were down 10% in March, as it appeared that Israelis were holding off on buying while the government formed legislation around Finance Minister Yair Lapid's plan to eliminate value-added tax (VAT) payments for first-timehome buyers. Only 1,790 homes were sold in March, compared to 1,980 in March 2013.

During the first quarter of 2014, sales were down 7% over the same period in 2013. Between January and March of 2014, a total of 5,720 homes were sold.
According to Lapid's plan, value-added tax (VAT) would be eliminated for first-time apartment buyers. Families who get the discount would have to hold onto the apartment for at least five years. This measure is intended to prevent couples from buying apartments for the purpose of trading in them. VAT is currently 18%. Lapid's plan would provide the discount to Israelis who had at least one family member who served in the IDF.

Along with slower sales, prices for homes have been falling as well, as buyers have been holding out for what they hope will be a better deal. As a result, builders are offering discounts of as much as 15% on new homes in many parts of the country.

with thanks : israelnationalnews : LINK : for detyailed news.

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