Foreign buyers see big bargains in U.S. real estate

Foreign investors are finding plenty of real estate deals in the U.S.  and those international investors are flocking to key states to buy their next property. And who is at the top when it comes to purchasing real estate in the U.S.?  It is Mexico, according to a recent study by Credit Sesame, which used National Association of Realtors® data for its findings.  This is true especially for California and Texas, two states that are among the top in having foreign real. estate investors Florida, also among the top, has most of its foreign buyers from Cuba, Haiti and Columbia.

MSNBC reported the following breakdown in the three top states:

 1. Florida: Thirty-one percent of all home purchases are made by foreign buyers, with most coming from Cuba, Haiti and Colombia.

2. California: Twelve percent of all home purchases, with most coming from Mexico, the Philippines, China, India and Vietnam.

3. Texas: Nine percent of all home purchases, with most coming from Mexico, India, Vietnam, China and the Philippines.

Many Americans consider homeownership a key part of achieving the “American dream.” But no group values homeownership more than foreign-born U.S. residents: those who have come to the United States seeking a better life. Did you know that nearly 80% of foreign-born U.S. residents owned a home in 2009 while the national homeownership rate at that time was much less :65.4 percent. (it is currently 66.3%).

What is the makeup of each state when it comes to foreign-born residents? The image below will show you which states are most popular among foreign homebuyers and investors. (Note that these stats refer to the overall population, not homeowners alone.).



Use CreditSesame.com to find the best mortgage rates based upon your complete financial profile!

Buy a house and get a U.S. Visa?

According to the Wall Street Journal, Sens. Charles Schumer (D-N.Y.) and Mike Lee (R-Utah) have proposed a new type of resident visa for foreigners who spend at least $500,000 to purchase real estate in the United States. The proposal states for at least $250,000 to be spent on a residence, while the other $250,000 may be invested in other real estate--the entire amount must be a cash investment.

The provision, part of a larger package of immigration measures, would complement existing visa programs that allow foreigners to enter the country if they invest in new businesses that create jobs.  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.

The provision would create visas that are separate from current programs so as to not displace anyone waiting for other visas. There would be no cap on the home-buyer visa program

Over the past year, Canadians accounted for one quarter of foreign home buyers, and buyers from China, Mexico, Great Britain, and India accounted for another quarter, according to the National Association of Realtors. Supporters believe the initiative would help absorb a glut of housing supply – especially in markets like Arizona and South Florida, where foreign buyers have represented a rising share of home buying activity.  

Source: Wall Street Journal (10/20/11)