Kahlon calls for upping tax on residential real estate investors

Incoming Finance Minister Moshe Kahlon confirmed that he intends to significantly increase taxes for investors on residential apartments.

"Some 25% of those purchasing second apartments are investors, We need to extract them from the market," Kahlon said in a Channel 2 interview that aired Saturday, the first since he signed a coalition agreement to join the government coalition on Wednesday.

The logic behind a tax increase is to make it less profitable for investors from buying apartments and renting them out, thus keeping more apartments on the market for people who want to buy them. The tax would not apply to those buying homes they intend to live in.

Source: http://www.jpost.com/Israel-News/Politics-And-Diplomacy/Kahlon-calls-for-upping-tax-on-residential-real-estate-investors-400863

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