Tuesday, September 23, 2014

What? Better Financing For Non-USA Residents?

It is bad enough that millions of U.S. residents who have faithfully made every mortgage payment for years are "rewarded" with a significant drop in the value of their property to the point where they can't sell to break even. It is bad enough that lender restrictions toughened up to the point where many consumers are not able to qualify for a mortgage even if they had enough to purchase a home.

Yet, while this is going on, it turns out that some international buyers are now able to get BETTER financing for purchasing U.S. properties at a discount. Shouldn't residents of this country have an advantage?

New research shows a recent 46% increase in real estate purchases by foreign buyers. 

I'm sure that some will argue that these international buyers are helping the economy by pumping millions and millions of dollars into real estate. Normally, I would not have an issue with that. Where I do take issue is the fact that, at the present time, these foreign buyers have a significant advantage over U.S. residents right here in our country. 

If I was in charge, there would be an additional 15% "Foreign Buyer" county tax added to every U.S. property purchased by a non-resident. Why a county tax? Because that money should go into the local county property tax fund and go toward reduction of the local property tax costs for every U.S. home owner within that county. 

In addition, these purchases would serve to RAISE the sale prices of these properties. At 15%, a $400,000 property would cost a foreign buyer $460,000 instead. This would serve to increase area property values locally.

I had better not hear the argument of "That would be wrong to increase property values because of this". Why? If foreclosure and short sale prices have been used to reduce property values for everyone else (when the sale amount is to satisfy a loan and not reflect the current value), then an additional tax should count in the same manner.

This is something that should become a political issue, and be lobbied by the National Association of Realtors immediately. 

Just in case you have not yet read the story about this, here you go:


Let's force these international investors to "Buy American"!!

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