Senate offers plan to entice foreign investors into US housing market

Senators Charles Schumer, Democrat from New York, and Mike Lee, Republican from Utah, recently proposed a bipartisan plan to bring foreign investors into the U.S. housing market to purchase homes in exchange for visas.

The New York Times reported the provision is part of a bill that aims to nurture foreign investment in the U.S. economy, and will offer foreigners a three-year residential visa for an investment of at least $500,000 into the housing market. In addition, once a home is purchased by a foreign investor, he or she must remain in the home for at least 180 days each year. Schumer told the news source that foreign investors who participate in the program would still be subjected to the same in-depth screenings other people seeking visas experience.

The news source reported the foreign investors would be required to pay for the homes with cash, not mortgages, and pay taxes on the properties. The investors will have to apply for work visas to hold a job in the United States, but these visas would not grant them citizenship or allow them to vote.

According to the National Association of Realtors, while American consumers are hesitant, foreign demand in U.S. residential real estate has been growing. The NAR reported the sale of U.S. residential property to foreign buyers increased 24 percent to $82 billion between March 2010 and March 2011, compared to the same period a year before.
 

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