Buy a House, Get a Visa, an Incentive for Foreign Investors (Phoenix: real estate, buying)

[Captain Bill]

The incentive measure (click on this link to read) is part of a package of immigration measures co-authored by Sens. Charles Schumer and Mike Lee which is designed to attract more foreign investment in the U.S.

The bill would allow foreign investors who spend $500,000 on residential real estate to live in the U.S. but they can not work here. It is not a work visa.

According to the article they can buy one home to live in, and then buy other investment homes. It doesn't say how long they have to remain in the country each year. Perhaps they could use the home they occupy as a winter home.

I believe (don't know for certain) the Phoenix area has around 5-6% foreign property buyers; and the majority of investors I work with are from Canada. The California market tends to attract wealthy investors from China buying homes in the million dollar ranges.

This bill may attract more foreign buyers to the Phoenix area. It isn't expected to add more than around 1% in sales, but every little bit helps. And perhaps the investors who would come here to live, since they must spend at least $500,000, would be looking toward the higher end market.

I can't say how this will play out, so we'll have to wait and see how the final bill will read, if it passes.

[Stokes172]

I don't really see the difference from what is allowed already. Is there a limit as to how long I can stay in the US? I know there is a time limit set upon us by Canadian governments.

I don't work here...I just spend money

[sh9730]

Sounds like it is similar (except for the no-work component) to the EB-5 program that is being used for the "Phoenix Mart" project down here in Casa Grande. That program requires the person to contribute 500K in business investment and provide 10 jobs per visa. Currently they expect 300 Chinese to apply for the visa's thereby providing 150 million for the project and 3000 jobs.

This real estate program appears to have some of the same components, though not exactly the same of course.

[Ponderosa]

Originally Posted by Stokes172

I don't really see the difference from what is allowed already. Is there a limit as to how long I can stay in the US? I know there is a time limit set upon us by Canadian governments.

I don't work here...I just spend money

6 months without a visa.

[Captain Bill]

Originally Posted by Stokes172

I don't really see the difference from what is allowed already. Is there a limit as to how long I can stay in the US? I know there is a time limit set upon us by Canadian governments.

I don't work here...I just spend money

The article says you can live here, but can't work. It doesn't mention a time limit.

If you wanted to work, then you would have to apply separately for a work visa.

[Potential_Landlord]

[quote=Captain Bill;21572307]The incentive measure (click on this link to read) is part of a package of immigration measures co-authored by Sens. Charles Schumer and Mike Lee which is designed to attract more foreign investment in the U.S.

The bill would allow foreign investors who spend $500,000 on residential real estate to live in the U.S. but they can not work here. It is not a work visa.

I know wealthy Chinese are burning to leave their homeland and emigrate to the US for they know what's coming to them over there. In a crisis we like to tax the rich, but they like to burn them. And they are due for a MAJOR crisis that will let Japan 1990-present look like a walk in the park. STRATFOR has a number of articles on this.

[Rick Lee]

I think the poison pill in this proposal is that the new immigrants' foreign incomes would be subject to US taxes because they'd be required to live here for 180 days a year. I'm sure they'd not hesitate to get around that in some way. But it would be a deal killer for a lot of folks. It's much easier for wealthy Chinese to buy their Canadian citizenship.

[Captain Bill]

Originally Posted by Rick Lee

I think the poison pill in this proposal is that the new immigrants' foreign incomes would be subject to US taxes because they'd be required to live here for 180 days a year. I'm sure they'd not hesitate to get around that in some way. But it would be a deal killer for a lot of folks. It's much easier for wealthy Chinese to buy their Canadian citizenship.

The article did not say their foreign income would be subject to US taxes. My guess is it would not, because that could potentially outweigh the incentive.

It didn't say how long each year they would be required to live here. It does use the word "immigrating".

We'll have to wait to see IF the bill is passed, how the "live here" is defined. However, if they sell their properties that visa is no longer valid.

"Foreigners immigrating to the U.S. with the new visa wouldn't be able to work here unless they obtained a regular work visa through the normal process. They'd be allowed to bring a spouse and any children under the age of 18 but they wouldn't be able to stay in the country legally on the new visa once they sold their properties."

[Rick Lee]

The article I read, which I cannot get to format to print or copy and paste said they would have to live here for 180 days a year, pay US income taxes on foreign earnings AND they'd have to pay more for the house than it appraised for. Who the hell would swallow these two poison pills?

US bill proposes visas for people spending $500,000 or more on a house

[whodiman]

Actually this is big for retirees. One of my managers is retiring this year. He is only in his early 50s. He told me he would buy a place in Phoenix in a heartbeat if it weren't for the 180day rule since he would love to golf year round and can still do it. Well, this might influence his decision.