In Israel, homebuyers are facing pressure to sell their old apartments to avoid paying a high purchase tax. After purchasing a new apartment, they face a selling deadline, and if they do not sell in time, they risk losing the tax benefits intended for single homeowners. In light of the situation, many are considering compromising on the price to expedite the sale, with some willing to drop 50,000 to 100,000 shekels from the asking price. The concessions granted to homebuyers aim to facilitate the transition between apartments, but the war and stagnation in the real estate market are causing delays in sales. Data from the Ministry of Finance shows that about 23% of homebuyers are unable to sell their apartments on time, leading to concerns about further economic consequences, including capital gains tax. Some clients are also exploring options such as transferring the apartment as a gift to their parents, but this move requires consideration of tax implications.
The deadline has arrived and the price is dropping: apartment sellers are compromising to avoid a tax of hundreds of thousands
Source Globes
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