..:: Foreign Real Estate Buyers May Get Visas w/ $500K Purchases ::..

[xx name brand xx]

This Bill could be a much needed boost for the housing sector. Like the video said, it's a small fix, but it's a fix. I also like that the $500,000 doesn't have to be spent all on one property. The reporter said if you buy a house you'd "only be employing a landscaper". It's actually much more than than just a landscaper; the Seller is paid, utilities are paid, the brokers are paid, escrow & title companies are paid, insurance companies are paid, the moving company is paid, the buyer/tenant is going to be spending money at local businesses, etc. This is good, for everyone.

 

[coldcity]

p4l

 

[lazyj10]

What exactly needs to be fixed in the housing sector? And more importantly, why?

 

[thunderchunk69]

how does credit work overseas 

20% with great credit is enough?

EDIT:

 nvm, thought it meant leaving 

 

[xx name brand xx]

Originally Posted by LazyJ10

What exactly needs to be fixed in the housing sector? And more importantly, why?

There's positives and negatives to the current housing market. It's definitely a positive for investors, funds and REITs but almost everyone else is getting the short end of the stick.

-There are a lot of distressed properties, REO's and Short Sales that are keeping home prices down. This also ties into the unemployment rate.

-This is good for a lot of people who now can afford home ownership rather than rent a property. Prices are the lowest they've been since 2001

-This is bad for those who have mortgages on properties where values have declined 15% to 50% in some areas. They have zero or negative equity in their properties and banks are reluctant to refinance. If they short sell their property or let it foreclose they won't be able to qualify for another mortgage for a minimum of 3 years, unless they pay cash.

-Large financial institutions received TARP funds but have barely loosened borrower requirements. The only thing that's in the borrower's favor is the low interest rates. There are 0% to 3.5% down payment programs available which is what I try to make buyers aware of. Borrowers still have to have a good amount of cash reserves, good credit and good employment history to qualify.

-There's an oversupply of newer housing developments across the country that are sitting empty or have halted construction.

-The shadow inventory of REOs that banks are holding is crazy. For example in Elk Grove, CA there are about 1000 bank owned homes in the city but only 250 are on the market. At some point in time the bank is going to have to sell these properties. This is the case in many cities throughout the country.

You asked why this needs to be fixed?
-Banks are making unprecedented profits even with an inundation of short sales and REOs. The millions of foreclosures could be repositioned to help those who have lost their homes. What more is a bank going to do once they have all of our money and all of our property?

-Real estate development is pretty slow right now. When the economy and real estate market improves, developers will be inclined to build again. These projects can employ hundreds at a time when developing a residential community, retail center or office property. Contractors, architects, suppliers, brokers, and the city all benefit from development.

One sector that is doing well is real estate investment related to sustainable energy (solar and wind). Even Google is doing it.

 

[coldcity]

good info name brand

 

[xx name brand xx]

Originally Posted by ColdCity

good info name brand

Thanks. The market is slowly correcting itself. This new policy would help even more.