A newly proposed bill by two Senators would include a provision that would give away US residency visas for foreigners investing in real estate here.
This bill really aims to solve three issues all at once. Firstly, it will appease those seeking more relaxed immigration reforms. Secondly it will encourage more foreign investment in the US and of course lastly it aims to help provide a boost to the housing market.
This sounds like a great move for those in the real estate investing business. However, of course the catch is that investors will have to spend at least $500,000 on US real estate. This can either be all spent on one residence or at least $250,000 on a residence and the rest spread among investment properties. Certainly heavy promotion of this program by the government will surely have more foreigners lining up to purchase properties and get visas. However, it is important to note that there are already similar programs and visas in existence.
Still with foreign buyers accounting for 30% of all purchases in some areas of the country they cannot be ignored as an important and profitable niche for real estate investing companies. According to recent stats foreign buyers spent around $82 billion on real estate investing in US residential properties during the 12 month period ending in March. Though not only is this a huge market to tap into, it is also often a more profitable one for those flipping houses. In fact one California real estate pro has reported receiving at least one full price offer from Chinese buyers on every property she has listed, including one selling for 8% more than was being asked for.
So real estate investing companies should be looking at which countries are most interested in their local markets and finding ways to their properties in front of the foreign buyers quickly.