FOREIGNERS may soon be given green cards in exchange for buying US houses in a bid to kick start the nation's reeling economy.
US senators are preparing to introduce a bill next week that would hand visas to foreigners who spend at least $500,000 on residential real-estate - a single-family house, condo or townhouse.
The move is part of a larger package of immigration measures designed to spur foreign investment in the US.
"This is a way to create more demand without costing the federal government a nickel," supporter of the bill, Senator Charles Schumer said.
Pictures: US properties for sale
While foreigners would not be able to use the proposed visa to work in the US or stay in the country legally after they sell their properties, it will further fuel offshore demand for bargain houses in hard-hit areas such as Detroit and Atlanta.
Foreigners have accounted for a growing share of home purchases in Florida, California, Arizona, Michigan and Georgia spending $82 billion last year, as overseas buying of US housing doubled.
Emboldened by the soaring local dollar, Australians also invested heavily - about $600 million - in US property last year, according to the National Association of Realtors.
"Hundreds of millions at risk"
But experts say Australians should be wary of being lured into the market, where investors risk losing hundreds of millions of dollars.
They warn that swaths of properties for sale are in bad neighbourhoods, where it would be almost impossible to get a tenant, and even harder to get your money back if you later decided to sell.
Many investors are being conned by agents promising unrealistic rental returns of up to 20 per cent.
Property pundits point to a number of other potential pitfalls including buying over the internet sight unseen, ensuring the property is in a location that potential renters like, local tax laws, and a tough market which might make it impossible to recoup your money.
Consumer advocate Neil Jenman earlier this year predicted thousands of Australians will lose their money after unwittingly buying undesirable property in the US.
"Some of the properties being offered are in ghettos and you need a bullet-proof vest and an armoured Humvee to collect the rent in there,'' Mr Jenman said.
Meanwhile in other property news, US house sales dropped in September following a spike in August, a major industry group said in a report highlighting the depressed market.
Sales of so-called existing homes fell three per cent to a seasonally adjusted annual rate of 4.91 million, from an upwardly revised 5.06 million in August, the National Association of Realtors said.
US senators are preparing to introduce a bill next week that would hand visas to foreigners who spend at least $500,000 on residential real-estate - a single-family house, condo or townhouse.
The move is part of a larger package of immigration measures designed to spur foreign investment in the US.
"This is a way to create more demand without costing the federal government a nickel," supporter of the bill, Senator Charles Schumer said.
Pictures: US properties for sale
While foreigners would not be able to use the proposed visa to work in the US or stay in the country legally after they sell their properties, it will further fuel offshore demand for bargain houses in hard-hit areas such as Detroit and Atlanta.
Foreigners have accounted for a growing share of home purchases in Florida, California, Arizona, Michigan and Georgia spending $82 billion last year, as overseas buying of US housing doubled.
Emboldened by the soaring local dollar, Australians also invested heavily - about $600 million - in US property last year, according to the National Association of Realtors.
"Hundreds of millions at risk"
But experts say Australians should be wary of being lured into the market, where investors risk losing hundreds of millions of dollars.
They warn that swaths of properties for sale are in bad neighbourhoods, where it would be almost impossible to get a tenant, and even harder to get your money back if you later decided to sell.
Many investors are being conned by agents promising unrealistic rental returns of up to 20 per cent.
Property pundits point to a number of other potential pitfalls including buying over the internet sight unseen, ensuring the property is in a location that potential renters like, local tax laws, and a tough market which might make it impossible to recoup your money.
Consumer advocate Neil Jenman earlier this year predicted thousands of Australians will lose their money after unwittingly buying undesirable property in the US.
"Some of the properties being offered are in ghettos and you need a bullet-proof vest and an armoured Humvee to collect the rent in there,'' Mr Jenman said.
Meanwhile in other property news, US house sales dropped in September following a spike in August, a major industry group said in a report highlighting the depressed market.
Sales of so-called existing homes fell three per cent to a seasonally adjusted annual rate of 4.91 million, from an upwardly revised 5.06 million in August, the National Association of Realtors said.
