Lure to Foreign Buyers: Buy a
Home, Get a Visa?

Daily Real
Estate News | Friday, October 21, 2011

A bill recently  introduced in the Senate proposes that foreigners who spend $500,000 or more on
a residential property should be eligible to obtain a visa that will allow them
to stay in the country.

Several stipulations would be attached to the offer, however. Foreign investors would
need to purchase a primary residence of at least $250,000 but spend at least
$500,000 on residential real estate (another property could be a rental) — and
through cash purchases only. The property would also need to be purchased for
more than its appraised value, and the buyer would need to agree to live in the
home for at least 180 days each year, which means any foreign buyer would be
required to pay U.S. income taxes on any foreign earnings too.

The visa could be renewed every three years, but it would not serve as a way toward
citizenship.

“Many people want to come and live in the United States,” says Sen. Charles
Schumer, D-N.Y., who introduced the legislation this week with Sen. Mike Lee,
R-Utah. “They will be here spending money and paying taxes, and the most
important thing is they’ll sop up the extra supply of homes we have right now
compared to demand, and that’s what’s dragging our economy down.”

Some brokers say that a visa incentive to foreign buyers could potentially even triple sales
in their markets.

“California, Florida, New York, Colorado, Hawaii, and Texas — those states will see a huge
increase in demand,” Sandra Miller, a broker at Engel & Volkers in
Santa Monica, told the Los Angeles Times.

Source: “Bill
Would Encourage Foreigners to Buy U.S. Homes,” Los Angeles Times (Oct. 20, 2011)