Google Street View sparks security concerns

Plans to photograph Israeli cities for Google's Street View platform has sparked security concerns amongst various officials who fear the data could be exploited to help terrorist organizations plan attacks. "We already have problems with Google Earth, which exposes all kinds of facilities," retired Lt. Col. Mordechai Kedar told the Associated Press.

Nevertheless, a team of Israeli cabinet ministers - headed by Intelligence Minister Dan Meridor - recently kicked off a collaborative effort with Google to find a safe way of implementing the feature "as soon as possible." To be sure, the team has been tasked with walking a fine line between increasing visibility for tourist sites, while simultaneously ensuring public safety and protecting personal privacy.

As such, if Israeli cities are added to Street View, it is quite likely that significant restrictions will be placed on filming security installations such as army bases and other defense related facilities. Although Israeli ministers declined to comment, a Google rep emphasized that the company hoped "to offer the benefits of street-level imagery to users all around the world."

White City Residence Off the Ground

Construction on the site is moving ahead and the main tower is now off the ground. Delivery is slated for end of 2013, so there is still a lot of work ahead but progress is encouraging.

Real estate tax law changes approved by the Knesset

The Knesset has formally approved several tax law changes affecting the real estate market in Israel, with the intent of cooling off the country's skyrocketing real estate prices. The tax law changes at this point, will be for 2 years as the Government attempts to slow down Investor purchases which over the last few years have accounted for nearly a third of all real estate transactions in Israel. The idea is to increase the supply of existing apartments and buildable land for new apartments. We mentioned the betterment tax changes in a previous article. Here are all of the changes brought by the vote:

1. The Purchase Tax on apartments purchased for investment, has been increased. The new purchase tax brackets will be 5% on properties to NIS 1 million, 6% on properties costing NIS 1 to 3 million and 7% on properties costing more than NIS 3 million.
2. Reduction of the Purchase Tax for individuals purchasing their primary residence. The new law exempts those who buy a property up to NIS 1.35 million from paying any Purchase Tax at all. Those who purchase in the NIS 1.35 to 1.6 million price range, will pay 3.5% and purchases over NIS 1.6 million will be taxed at 5%.
3. The Betterment Tax, which applies to the Capital gains achieved when selling a property that has appreciated, will be modified so that apartment owners who sell a property within 4 years of purchasing, will be exempt from the Tax. Previously, an apartment owner had to wait 4 years from the time of purchase before selling, in order to be exempt from the Betterment Tax. Also, those landowners, who sell land which they purchased prior to 2001, will pay a reduced rate of tax, 20% as opposed to 45%. Land sold for NIS 2.2 Million or less, will be exempt from the Betterment Tax.

The Knesset also decided that these changes would not be retroactive to January 1st of 2011 contrary to what had been previously suggested.

Source BPII

Migdal buys Rothschild One

Globes is reporting that Migdal Insurance and Financial Holdings Ltd. has bought the Rothschild 1 Tower luxury residential and office building in Tel Aviv for NIS 40 million from A. AMN Investments Ltd., which bought it from Habas HZ Investments Ltd. a year ago. Migdal did not buy the building's 650-square meter commercial floor.

In August 2010, Bank Leumi rented 3,000 square meters in the building. The space was reportedly leased at NIS 70-100 per square meter in a four-year contract with two three-year options to extend. Habas sold the Rothschild 1 Tower to AMN for NIS 58 million in December 2009. Habas nevertheless remained responsible for leasing the property in order to maintain the building's character by choosing the tenants.

The 32-storey Rothschild 1 Tower has 37 apartments. Gross proceeds from the apartment sales were NIS 800 million. Eitan Wertheimer, the richest man in Israel, and a foreign businessman bought the last two apartments, each 700 square meters in area, on the 28th and 29th floors, for NIS 46.5 million in May last year. That's $12.6 million each which translates into a cost per square meter of $18,000.

Knesset passes bill to eliminate betterment tax

"I loudly reiterate - the threat of earthquakes is at our doorstep now. We must act as soon as possible," said Minister of Interior Eli Yishai yesterday, after the Knesset passed the first reading of a bill to renew the exemption from betterment tax on retrofitting of buildings in line with National Outline Plan 38 for reinforcing structures against earthquakes. Yishai submitted the bill on Sunday.

The bill also upgrades National Outline Plan 38 from a directive, which has to be periodically renewed, to a law. The directive for National Outline Plan 38 expired in November 2010. Yishai added, "From the Knesset dais, I call on Israeli citizens who live in old building to act expeditiously to retrofit these buildings. I will seek easements on fees and taxes for people who retrofit their homes against earthquakes. The warning signs in the form of small earthquakes have already been felt. The Ministry of Interior will do what it can to lift the barriers against retrofitting buildings against earthquakes. It is not worthwhile waiting for a commission of inquiry about protecting the home front against earthquakes. We should act immediately to retrofit buildings now."

In 2007, the Knesset passed the Planning and Building Law Encouragement for Strengthening Structures Against Earthquakes (Directive) (5767-2007). The law cancels the betterment tax for retrofitting carried out as part of National Outline Plan 38. The amendment related to the exemption from the betterment tax expired in November. The new law will reduce the betterment tax for retrofitting buildings by 90%. The Knesset's approval of the bill came after months of pleading by developers about the expiry of the exemption and worries about its renewal.

Source Globes