How to get rid of 2.4 million houses on the US market and put an end to US housing crisis ? Give Greencards to foreigners who buys these US houses say this WSJ post. The condition proposed is to become temporary resident initially when they buy houses and only after five years they become permanent residents. It is similar to EB-5 visa type except that investment is in houses.
How many potential foreigners are there who can invest in US houses –
Merrill Lynch estimates that in 2007 there were 10.1 million individuals in the world, 7.1 million outside the U.S., with at least $1 million in financial assets that totaled $29 trillion. If new immigrants bought the 2.4 million excess houses at today’s $184,000 median price with funds from abroad, they would bring untold billions. The immigrants would also buy consumer goods, pay taxes, and start many new businesses.
Does this solution work or create more immigration problems ?
Isn’t this the same model that financial brains invented in housing boom times to achieve the current painful recession. Grouping all the houses as mortgage backed securities and selling it to the investors (either foreign or local). Everyone is happy when house prices increased and when their value fell, the century old investment banks (Bear & Stearns, Lehman Brothers) disappeared from the papers.