Senators propose bill to stimulate housing market in exchange for visas

KPCC

 67  

james.thompson/Flickr (cc by-nc-nd)

A new senate bill offers foreigners a visa if they purchase homes in the United States in an effort to spur the housing market.

 Download 

A new law proposed by Senators Chuck Schumer (D) from New York and Mike Lee (R) from Utah would award a three-year residential visa to foreigners who spend at least half a million dollars on residential real estate. That could be one home at a minimum of $250,000, and additional property that could be rented out, totaling at least $500,000.

The bill – cleverly dubbed the Visa Improvements to Stimulate International Tourism to the United States Act (VISA-USA) – is designed to stimulate the moribund housing market and could be an incentive for cash-flush buyers from China, Canada and elsewhere to invest in residential properties in the US. Foreigners and recent immigrants spent $82 million dollars on real estate in the U.S. during a one year period ending in March, up considerably from the previous year.

This bill is similar to an already existing program that gives foreigners who invest heavily in American businesses and job creation a fast track to a green card. But the authors of the bill point out that this is not a path to citizenship for foreign nationals. There are numerous restrictions on the program: Buyers would have to pay cash for the entire purchase and would have to live in the house for at least six months in a year. They would be subject to U.S. taxes but would not be eligible for government benefits such as Medicare, Medicaid and Social Security. And a separate work visa would still be required for those who want to work.

Schumer and Lee, however, believe that the concept has potential to lift the sinking housing market, stimulate the economy and fill up foreclosed properties. 

Real estate broker Sandra Miller told the Los Angeles Times that if this bill becomes law, states like California could see a huge increase in sales to foreigners. There are also a number of other provisions in the bill that are designed to lower barriers to travel and obtaining visas for foreign nationals. Could this idea spell welcome relief for the housing crisis?