Yechiel came home from a wedding last night concerned that all his friends who have gotten married in the last year are having to rent even though rental fees have increased drastically.
After living his whole life in rentals his biggest fear is not being able to buy a home when he gets married. Unfortunately and realistically the young Israeli Couple face many challenges in the purchasing of a home due to the housing shortage and the Mortgage terms that are harder then they were 20 years ago.


The Israeli Government gives subsidized mortgages to certain groups in society in order to encourage home ownership. The amount of the loan and its terms are determined by a “point system”. The point system takes into consideration Army Service and the size of the family etc.which will increase the number of points a person receives and thus determines the terms of the loan.

In the past, Government Loans were considered to be the best terms to take a mortgage, but today this is no longer the case. Banks will give better terms to stable/good clients above those who qualify per points.
The banking system is in the loan business for a profit and today most mortgage banks demand that you open an account with them through which you will repay the mortgage. This way you will bring your other business to the bank, which increases the fees and interest they will receive from you.  
 
In order to qualify for a Mortgage you need to have a 40% down payment of the total cost of the property and a good salary. Being that the price of housing is so high, it is difficult for young couples to save the down payment. They typically do not have a good salary because most young couple are working towards getting a higher education, receiving a late start due to Army service. The bottom line is that they can't buy a home unless they can afford it.
Lately we have seen many news articles discussing the housing shortage and the fact that the young Israeli is having difficulty purchasing a home. Shas has even threatened to quit the coalition over the housing shortage.

 
http://www.globes.co.il/serveen/globes/docview.asp?did=1000628068&fid=1725
We have also seen articles about issuing government loans to young Israelis who choose to purchase homes in the country's outskirts.

 
http://www.haaretz.com/mortgage-demand-down-as-housing-grants-approved-1.362202

It is Yechiel's generation that is taking the brunt of our lack of planning ahead.
Tenants & Landlords Together will work towards solving this problem and are strongly motivated in giving our children a better future.

Yael Platzky
Tenants and Landlords Together
Founder/General Manager