Senators introduce bill to incentivize foreign homebuyers

Miami /
Oct.October 20, 2011 02:00 PM

New York Senator Chuck Schumer and Utah Senator Mike Lee are introducing a bipartisan bill aimed at improving the housing market by offering an incentive to foreign buyers, the Wall Street Journal report. The senators want to offer residence visas to any foreigner that spends at least $500,000 on residential real estate in the United States. The measure compliments existing rules that offer visas to foreign investors that create jobs in America.

“This is a way to create more demand without costing the federal government a nickel,” Schumer said.

During the current downturn, foreign investors have become a growing part of the U.S. real estate market. In New York, buyers from China and elsewhere are increasingly shopping for condos, while in South Florida, Latin American and Canadian buyers are driving an otherwise stagnant market. In the 12 months ending in March 2011, foreigners accounted for $82 billion of U.S. home sales, compared to $66 billion in the trailing 12 months.

As a result, some opponents of the idea, including Realogy CEO Richard Smith, say it’s an unnecessary measure as foreign buyers have shown they don’t need incentive to make purchases. But restrictive immigration laws are hindering some would-be purchasers, real estate agents say, and any increase in housing sales could improve confidence in the market and in turn ignite a recovery. [WSJ]


Related Articles

arrow_forward_ios
Clockwise from top left: One Sotheby’s Jorge Uribe, Compass' Ida Schwartz, Fortune International Group's Edgardo Defortuna and Royal Palm Companies' Dan Kodsi (Illustration by Kevin Rebong for The Real Deal)
Slowdown hits South Florida’s hot resi market: Here’s what that means
Slowdown hits South Florida’s hot resi market: Here’s what that means
(Illustration by The Real Deal with Getty Images)
South Florida’s June resi sales drop by double digits
South Florida’s June resi sales drop by double digits
(iStock/Illustration by The Real Deal)
Miami again ranks as nation’s least affordable housing market, followed by LA, NY
Miami again ranks as nation’s least affordable housing market, followed by LA, NY
US HUD Secretary Marcia Fudge (Getty, iStock)
A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis
A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis
Residential sales fall in Southern Florida
Residential sales fall in April across South Florida
Residential sales fall in April across South Florida
10061 Southwest 60th Court in Pinecrest with Dr. Robert DerHagopian (Google Maps, Miami Cancer Institute)
Miami breast cancer surgeon Robert DerHagopian sells Pinecrest house for $6M
Miami breast cancer surgeon Robert DerHagopian sells Pinecrest house for $6M
2621 Flamingo Drive in Miami Beach with Mike Hezemans and Rita and Roman Shukhman (Compass, Wikipedia, Getty, LinkedIn)
Pro race car drivers sell Miami Beach spec house for $10M
Pro race car drivers sell Miami Beach spec house for $10M
Michael Dorrell, co-founder and CEO, Stonepeak Infrastructure Partners, in front of 235 Solano Prado in Coral Gables (The Jill Zeder Group, LinkedIn/Michael Dorrell)
New York investment firm founder pays record $34M for waterfront Coral Gables teardown
New York investment firm founder pays record $34M for waterfront Coral Gables teardown
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...