Price for the public is already here

First of all, to correct a common mistake, "Price for the resident" Ena New program. About a year ago, I even assisted a couple with a mortgage who purchased an apartment in the "Price for the Young Couple" program in Rosh HaAyin. On the website that the Ministry of Construction established for the "Price for the Resident" program, the program is called Price for Housing in its new format.  What's new with the new format? The Housing Minister and the Finance Minister are new. After all, not

It is conceivable that a program implemented by previous ministers would receive credit for its implementers. Therefore, there is New approach To the new ministers, may Zion be redeemed.

What is Price for Preferential Housing?

Price for Housing is a different land marketing method than the common one. In the common method, the state, which owns the land, sells it to the contractor who offered the highest price for the land. In the Price for Housing method, the land is not sold to the contractor who offered a high price, but the opposite: the state sets a land price lower than the market price. The contractor who wins the bid to buy the land from the state is the one who offers to sell the built apartment to citizens at the lowest price, while maintaining the minimal construction specification set by the state.

The state, for its part, subsidizes the development costs of the lots in addition to the land price.

In other words, under the "Price for the Resident" program, apartments will be sold below market price to the target audience defined by the Ministry of Housing.

Target audience for the "Price for the Resident" program

• Married or common-law couples
• Individuals over 35 years old.
• Single parents with one child in their custody.
• Disabled

Additional conditions that the target audience must meet

• Did not own an apartment or part of an apartment in the previous six years. An exception to this condition is someone who owned an apartment but was forced to sell it as part of a divorce agreement.
• Without rights in an apartment under construction
• Without rights on a farm

Characteristics of buildings in the "Price for the Resident" program

Price for the Resident is intended for dense construction. Price for the Resident buildings must include at least 6 apartments on two floors or more, and at least one apartment on each floor.

Apartment specifications for "Mechir Lemishtaken" (a government housing program)

Since the competition among contractors to win land was about who would sell the apartment at a lower price, there is a concern that contractors will build with substandard specifications. The Ministry of Housing published minimum specifications for "Price to the Resident" apartments. These included, among other things, double-glazed windows, a specific number of outlets in the kitchen, three-phase electricity, types of flooring, and more. The full specifications can be read Here

Sample projects

The prices refer to a 100 sq m apartment + 10 sq m balcony, storage, and parking.

Let's take Rosh Ha'ayin as an example. New apartments of a similar size are sold for about one and a half million shekels. This means the "HaMishtaken" program offers a discount of about half One million shekels.

That's not all yet...

 Additional benefits

In the periphery, location grants will be given in an amount dependent on the land value:
Value from 0 to 50,000 – Purchase grant of 60,000
Land value $50,001 – $100,000 – Purchase grant of $40,000

Mortgage for a "Price for Resident" apartment

For a standard apartment (as a first home), you can take out a mortgage of up to 75% of the property value. The property value used to calculate the loan-to-value ratio is based on the contract price or the bank’s appraiser’s valuation, whichever is lower. The Bank of Israel has established an important caveat for “Price for the Resident” apartments. The price used to determine the loan-to-value ratio will be based on the appraiser’s valuation or Market price And not the apartment's price.

Let’s take the apartment in Rosh HaAyin as an example again. If the market price for a similar apartment is 1,500,000 NIS and the apartment was sold under the “Price for the Resident” program for 975,856 NIS. The mortgage the family can obtain is not 75% * 975,856 = 731,892 shekels, but rather 1,500,000 * 75% = 1,125,000 shekels. In other words, the actual mortgage as a percentage of the apartment’s actual price will not be 75% but 90% (Set by the Bank of Israel).

So, what have we got so far...

People without housing can buy an apartment at a low price, with a grant and a mortgage at 90%.

"Price for Occupants" apartments cannot be sold for 5 years, but they can be rented out.

Bring me 2 or how do I register?

To register, you need an eligibility certificate. Currently, it has not been published how to obtain an eligibility certificate and how to register. In Israel, as in Israel, every minister thinks the government might fall next month, and no one will remember what he did. Therefore, the "Price for the Resident" marketing campaign did not include these details, which were probably not decided upon. The Ministry of Housing is content with an announcement: pay attention to publications. Well, this is a good opportunity to sign up for my mailing list to receive updates.

Not everything is rosy

"Mehir le'Mashkon" has excellent terms. It is likely that demand will exceed supply. The selection among all families wishing to purchase in a specific project, should there be more families than apartments, will be made through a lottery. The lottery will determine which families will be permitted to purchase in a specific project and the order in which the various families will select their apartments.

Update 2/22/2016

The first lottery for "Mechir Lemishtaken" apartments will be held for apartments in Afula.

To participate in the lottery, you must obtain an eligibility certificate. Obtaining an eligibility certificate is done at one of the public housing companies:

• Amidar – Phone: *6266
• Word mill – Phone: 1599-563-007
• M.G.A.R. – Phone: 1599-500-301 (You can fill out Online questionnaire On the Alonim Center website

You must coordinate an arrival time using the phone numbers above, and then arrive with 240 shekels for the fee and the following documents:

• Identity verification: original + copy
• Married couples will be required to present a marriage certificate
• Divorced individuals whose personal status is not updated on their ID card must provide a divorce certificate.
• Widowers whose personal status is not updated on their ID card must present a death certificate of their spouse.
• Single parents (one-parent families) need to provide: divorce certificate; divorce agreement that has been approved by a court order; Declaration of residence without a known spouse.
• A well-known couple needs to fill Declaration Form for a Couple Regarding Being Known to the Public and to sign it in front of a lawyer. If the couple holds a"Certificate of Non-Marital Partnership"On behalf of the "New Family" organization, there is no need to sign the form before a lawyer, but only before the branch manager, and to present the certificate and a copy of the affidavit signed at the "New Family" organization before a lawyer.

A certificate of eligibility is valid for one year from the date of its issuance.

Update 2/24/2016 – Lottery Registration

You register for the "Price for the User" lottery On the website:

Login to the site is performed with an identity number and eligibility confirmation number as the initial password.

Important note: 

website The Treasury's Internet and the Ministry of Construction website for the "Price for the Resident" system do not contain a large part of the above information. It certainly gives the impression that government ministries are more interested in making noise in the media than in helping potential clients or, in their accepted term, citizens. The above information was collected from various sources. Official information should be obtained from the Ministry of Construction. I would be happy to receive comments on inaccuracies, if any exist.