CNN quotes Wei Min in Foreigners Scooping Up U.S. Homes
Posted by Wei Min Tan on September 21, 2017
Publication: CNN Money
Summary: CNN article about a bill being introduced by Senator Charles Schumer (D-NY) that would provide a U.S. visa to foreigners spending at least $500,000 on U.S. real estate. This program is better known as the EB-5. If passed, the bill could further increase the number of foreign real estate investors in the U.S. Proponents argue that this program would provide needed capital for real estate projects in the U.S. and hence create jobs and benefit the overall economy. However, the other side would argue that this makes U.S. permanent residency for sale.
Foreigners spend $82 billion a year on U.S. real estate according to the National Association of Realtors. The source of foreign buyers moves with economic changes in the foreign countries. For example, the wave of European buyers of U.S. property was followed by buyers from Asia.
Wei Min’s comments in artAll Media Articlesicle: Wei Min Tan comments that demand is strong for Manhattan property because foreigners perceive Manhattan as a safe haven. Wei Min explains to clients that property prices in Manhattan would not appreciate as fast as Hong Kong or Shanghai, but Manhattan property is not as volatile either. Clients are buying in Manhattan for the stability that Manhattan provides.
Note: Maybe this only developed after the bill was initially introduced. But not mentioned in the article is that the EB-5 program does not apply to foreigners who buy real estate directly. For example, when buying a condo or single family house. The EB-5 is applicable only when the foreigner contributes equity to a larger project, eg a $500 million project that would create numerous jobs.