Investors learning about the San Diego real estate market become excited when they investigate the low prices in combination with strong rents. Foreign investors are no different. They are looking all over the world for a deal that can give them cash flow. I show you homes today, that at current market value will rent for more than the mortgage (including taxes, hoa, mello roos...all combined). This is because of threemain reasons, interest rates are very low and prices have come down considerablely and people need a place to live. After selling their house, short sale the Smith's needed to rent a house. They realized their rent payment to for something comparable was $2900 a month. They pay the rent, on time and are happy to have been releaved from their debt burden through short sale.
Foreign investors are always asking me about the introduced legislation... here is a reprint below from one of the co-authers, Mike Lee (R-UT), in his own words.
If you are a foreign investor or homes buyer interested in San Diego real estate and you would like updates on this bill click here.
Oct 20 2011
My office has been contacted by constituents with several concerns that were not properly addressed in recent news articles written about this bill. I would like to set the record straight.
First, every foreign investor who would like to purchase a home in the United States will continue to be required to meet the same basic requirements as every other visa applicant, a process that has been enhanced over the past few years. Those with criminal records, connections to drug cartels, suspected ties to terrorist organizations, or other problematic activities will not be able to take advantage of this legislation.
Second, this is not an immigrant visa, and is not a work visa. The visa this legislation enables is similar to a travel visa. It will only last for three years at a time and will not allow for recipients to obtain an American job or get on a path to citizenship.
Third, those who buy a home through this bill will not be granted any government benefits. They will not be eligible for Social Security, Medicare, Medicaid, or any of our other entitlement programs.
Fourth, buyers will not be allowed to purchase a home by taking out a mortgage. They must pay up front and in cash in order to qualify. They will not create additional risk in our financial system, nor will they create a stream of interest payments to our major banks.
Fifth, this bill does not create a new market that did not exist previously. Foreign buyers accounted for roughly $82 billion of American real estate purchases in the most recent year tracked by the National Association of Realtors. A full quarter of those buyers came from our neighbor to the north, Canada, with whom we share the world’s longest open border.
The purpose of this bill is to support a free market method of increasing demand for housing at a time when so many working-class Americans are underwater on their homes, are desperate for prices to rise again, and big-government programs have failed to work. I am sponsoring this bill because I know that it makes economic sense while protecting American citizens.