Invest $500,000 in US real estate and get a US visa.
The influence of foreign investors and their potential to help the housing market has not gone unnoticed by lawmakers, with senators reportedly introducing a bill that would grant visas to any non-US citizen who spends at least $500,000 in residential real estate. in the United States, which they believe will help boost demand.
“Senators Chuck Schumer of New York and Mike Lee of Utah have proposed a new provision to an immigration bill already under consideration by the United States Senate last week that would grant immigrant visas to foreign buyers who spend a $500,000 minimum to purchase homes owned in the United States
The ‘Resident Visa’ provision of the immigration bill was written for the purpose of boosting and energizing the sluggish US housing market by encouraging foreign nationals to purchase real estate in the US if accepted , this provision would complement other proposed foreign visa actions in the bill that would encourage more capital spending and investment by foreigners in the United States.
There are some stipulations. Here are some of the highlights:
At least $250,000 must be spent on a residence and the balance would be allowed for residential rental/investment properties.
Foreign buyers must pay for their purchases in cash, pay US taxes, and spend a minimum of 180 days in the US.
Foreign buyers with visas would not be able to work in the US without obtaining a work visa through normal and proper channels.
Foreign buyers may bring their spouse and children under 18 with them.
The ‘Residence Visa’ would expire when the property/properties were sold.”
Florida attracts foreign investors
Known as ‘The Sunshine State,’ Florida is once again attracting buyers who are finding bargains galore. Although the US claims to have been out of recession for the last 12 months, another dip is possible due to weak consumer confidence and strict lending criteria. But in the long run, Florida is bursting with opportunity.
Florida was booming at its peak, but now homeowners are finding their property values 50% lower than they were five years ago. For example, a four-bedroom pool villa in the Orlando area, 20 minutes from Disney, is now on the market for £111,000.00. You could buy a property like this with a 30% down payment plus expenses. So an investment of around £41,000.00 could see you earn a return of around 6%. The current thinking is that in the worst case scenario in today’s market you could break even with just the capital to show your investment, but the market is expected to improve, but without a crystal ball, as mentioned, it is possible another fall in the market.
Opportunity has an unfortunate side, at least 50% of homes for sale are the result of a foreclosure or short sale, which is the process leading up to foreclosure. Regardless of how you feel benefited by the ill-fated business of foreclosure, it does help those who are in the short sale stage and the banks are happy to sell you. These transactions can be complex, so we recommend that you seek personal legal advice. It would be advisable for you to visit Florida and see these properties for yourself, as some may be in disrepair and need more work than you are willing to take on. A good buy would be near golf courses, of which there are hundreds to choose from, the stunning beaches on the Gulf of Mexico coast, as well as the beaches on the east coast. Of course, a popular place to shop is near the amusement parks in and around the Orlando area.
All of the most popular areas have excellent transport links from Europe to Miami, Tampa and Orlando.
Miami leads the revival of sales in the Sunshine State. Data from the Miami Association of Realtors shows that sales of existing single-family homes in the Miami Metropolitan Area increased 47% in July, and sales of existing condominiums increased 33%. Buyers are targeting homes in just five locations: Tampa Bay, which includes St. Petersburg, and Clearwater. Miami, Miami Beach and Fort Lauderdale. Orlando and Kissimmee. Naples and Marco Island. Cape Coral and Fort Myers, all in the southern half of the state and were hit particularly hard by the housing slump. Inventory fell more than 6 percent between the second and third quarters of 2011, driven largely by foreign investment, experts say. Canadians led sales overall, accounting for almost a quarter of foreign homebuyers, followed in smaller numbers by China, Mexico, India and the United Kingdom.
For those Investors in the enviable position of having cash at their disposal, real bargains can be found with banks that prefer to sell to cash buyers at discounted prices, rather than a lender willing to pay the asking price.
Let’s look at some of the main points to consider when taking those steps to buy a property in the sunshine state.
1. Choose your location wisely. This is an important first step.
2. List the help of a reputable real estate agent (property agent) who knows the area and will guide you through the process.
3. It is prudent to allow approximately 5% of the property’s value to cover costs such as notary fees, title insurer, and any other legal costs.
4. Once the ideal property has been found and the price has been negotiated, it is usual for the buyer to deposit a deposit. At this point, a formal offer follows, accompanied by a purchase contract. Once signed, the sale is binding.
5. One of the most important criteria when buying a property in the US is time. Contracts usually have a specific date and must be fulfilled, or you risk losing your deposit.
6. Financing is possible in the US as a foreign buyer and US mortgages are available from 70% – 80% loan to value.
7. Obviously, it is up to the individual to fully understand all the visa requirements, which will be necessary for various lengths of stay in the country. All information about it can be found at the nearest US Embassies, Consulates and Diplomatic Missions in your country.
