Two U.S. Senators will introduce a bipartisan bill on Thursday that would bestow a residence visa to foreigners who spend $500,000 or more on a house in the U.S. Senators Charles Schumer (D., N.Y.) and Mike Lee (R., Utah) proposed the bill because they think it will lead to obtainment of more foreign investments, and make up for the lack of real-estate sales among Americans.
The new visa would not allow the foreign homebuyer to work in the U.S. unless they hold a regular work visa, according to The Wall Street Journal. Buyers would be allowed to bring along their spouse and any children under the age of 18. If the property were ever sold then the visa would be deemed invalid.
The Wall Street Journal reports that foreigners have contributed to a growing number of home purchases in South Florida, Southern California, Arizona and other areas that were hit hard by the failing economy.
The details of the proposal, as outlined by The Wall Street Journal, are that “any foreigner making a cash investment of at least $500,000 on residential real-estate—a single-family house, condo or townhouse. Applicants can spend the entire amount on one house or spend as little as $250,000 on a residence and invest the rest in other residential real estate, which can be rented out.”
The new measure, if passed, would coincide with the already existing visa program that grants foreigners passage into the U.S. if they invest in new businesses that create jobs.
Schumer said in an interview with The Wall Street Journal, in regards to his proposal, “'This is a way to create more demand without costing the federal government a nickel.'”
Foreign buyers account for about $82 billion in U.S. real-estate sales for the year, ending in March, an increase from $66 billion in sales in the previous year, according to the National Association of Realtors.
The proposed bill does have many supporters, and those in favor think it could change the outlook on the housing market.
Critics on the other hand do not think foreigners need more encouragement to buy U.S. homes, and think that real resolution to the real-estate woes is to fix the problems with our economy, not to provide visas to more foreigners.
