Two U.S. Senators are preparing to introduce a bipartisan bill which provides non-U.S. citizens residence visas if they purchase homes within the country. According to a new report from the Wall Street Journal, the bill is designed to help the suffering housing market and encourage foreign investment in the United States.
Bill Will Grant Visas to Home Buyers Spending $500,000+
The housing market has been fighting to recover for several years, but faces difficulty getting back on track due to continued foreclosures, low homeownership and citizens’ reluctance to buy new or existing homes in the weak economy.
Senators Charles Schumer (D-NY) and Mike Lee (R-Utah) are looking to push the housing market toward recovery by proposing a bipartisan bill foreign home buyers to jump into U.S. homeownership.
Foreign buyers will be required spend at least $500,000 to purchase U.S. residential real estate– a single-family house, condo or townhouse– with cash in hand. To further promote more home sales in the housing market, applicants will be permitted to spend as little as $250,000 on a residence, then use the remaining $250,000 to purchase another home to act as a rentable, residential property.
In return, foreign home buyers will be granted U.S. visas as incentive to invest into the housing market.
Supporters Believe Bill Can Boost the Housing Market
With U.S. home buyers hesitant to invest into major purchases at the moment, supporters of the bill say it can help boost the housing market in the short-term, until residents regain confidence in the economy.
International buyers already account for a growing share of home purchases in the Arizona, Southern California and South Florida housing market. Canadian and Chinese buyers, in particular, are taking advantage of the declining housing market, low U.S. home prices and reduced competition from Americans.
Favorable foreign exchange rates are also encouraging foreign buyers to invest into U.S. real estate properties, which is why supporters believe many buyers will jump at the opportunity to obtain U.S. visas.
However, some remain skeptical about the impact visas will have on foreign investors. Residence visas provided due to a home purchase would still require foreigners to undergo the standard process of obtaining work visas to gain employment in the U.S. Also, while buyers are permitted to bring a spouse and any children under the age of 18 into the country, they wouldn’t be able to stay in the United States legally on the new visas if the properties are sold.
This bill is a part of a larger package of immigration measures and will complement existing visa programs that allow foreigners to enter the U.S. if they invest in new businesses that create jobs. The bill is being prepared for introduction to the Senate today.
The biggest problem with this is that the foreigners would be subject to income taxes on their worldwide income by becoming US residents. Wealthy people, the target of this program, would generally be foolish to fall into this trap.