PA Real Estate Blogs

A bill is on the table being supported that would offer visas to foreigners who spend $500,000 buying homes in the States.

The bill was co-authored by Sen. Charles Schumer (D-N.Y.) and Sen. Mike Lee (R- Utah) and includes several other immigration measures to attract more foreign capital into the United States, the Wall Street Journal reports.

The concept of giving out visas in exchange for foreign cash investments isn't anything new, but none of the programs currently available target home buying. One existing program allows foreigners to get U.S. residence visas if they invest a certain amount in job-creating ventures in the United States. The required minimum investment varies from $500,000 to $1 million, depending on the area. Commercial and residential developers have been all over these programs to fund construction of projects since lenders tightened their belts after the real estate crash.

But many foreigners, who are eager to invest in the States Under this bill, the foreign investors would be allowed to buy vacation homes and investment properties. But they would not be allowed to work without getting a standard work visa. The investors would be required to spend at least half of the $500,000 in a home where they would reside for a minimum of six months. The National Association statistics stated for the twelve months ending April 2010, foreign purchases of U.S. residences totaled $64 billion! This is almost twice the $36 billion in foreign transactions that took place during the twelve months ending April 2009. The percent of dollar volume represented by foreign transactions increased from 4.3% in 2009 to 7.1% in 2010. Would this bill if passed increase these numbers and help out economy?

Foreign investors of real estate support our economy starting at the closing. Each properties that is sold puts money into local economy from home inspectors, service companies, title insurance firms, Realtors, transfer taxes paid and property taxes which supply local municipal government much needed cash flow to support jobs and services to its residents The communities will prosper again since many of the vacant, maintenance deferred properties would be absorbed by the foreign investors.  After the closing the foreigner owners are likely to repair remodel the homes using the local trades, and support jobs by purchasing goods such as flooring, paint, appliances etc.

Most of the foreign purchases in U.S. residential real estate were located in four states – Arizona, California, Florida and Texas. These states accounted for 54% of all international purchases. Low interest rates, a weak dollar, and attractive prices in traditional vacation areas should continue to attract foreign investment but would increase significantly if the visa bill is passed in Washington…. Stay tuned

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