Bill offers visas to foreign property buyers

A controversial plan on Capitol Hill would let most foreigners who invest at least $500,000 in U.S. residential real estate automatically get the right for themselves and their families to live here.

Q. Is it true that Congress is working on a bill to give automatic residence visas to foreigners who agree to buy a home in the United States?

A. Yes. The controversial plan is part of a larger package of immigration proposals that's being championed by Sens. Charles Schumer, a New York Democrat, and Mike Lee, a Republican from Utah, both of whom say it would be a good way to lure more foreign investment into America and help bail out our nation's housing market without spending billions of dollars more in U.S. taxpayers' money.

Schumer, Lee and other proponents of the bill claim it includes several provisions that would prevent the new program from being abused by wealthy immigrants who hope to speed the lengthy visa-issuing process. One is that they would have to spend at least $500,000 for a house or condo here, or at least split the money up into separate homes or rental properties.

Another is they wouldn't be able to work here, and thus take jobs away from native-born Americans, unless they also obtain a regular “work visa” through the typical (and longer) federal process.

Those arguments don't make much sense, opponents of the measure say.

Sure, they note, rich immigrants who could utilize the law by investing at least $500,000 for a home to get an instant resident visa would be unable to apply for U.S. jobs until they finally got an additional work visa — but that means they could conceivably be eligible for various publicly provided aid until the work visa is granted. The cost to taxpayers could be amplified because the new visa program would allow them to bring over their spouse and any of their children under the age of 18, too.

Another concern: The $500,000 minimum-investment requirement could encourage foreign investors to pump their money into high-priced housing communities rather than into more affordable areas that are struggling even harder against the devastating effects of sagging property values and rising foreclosures.

It will take weeks or even months to see if the proposal becomes law, but I'll keep readers posted of any major developments.

Q. On Halloween night, a young trick-or-treater tripped over the steps on our front porch and injured his ankle and wrist badly enough that he had to be taken to the emergency room. His parents are now threatening to sue us for reimbursement of the medical expenses, and perhaps even damages for the boy's “pain and suffering.” Will the company that provides our homeowners insurance pay for the costs?

A. Probably, after you first pay any deductible out of your own pocket.

Injuries or accidents suffered by trick-or-treaters, much like those that could be experienced by other visitors or your local letter carrier, are typically covered under the liability portion of your homeowners or renters insurance policy if the injured person sues you. A standard policy also includes no-fault medical coverage, which allows the visitor to simply file the medical claim with your own insurer and avoid the need for a lawsuit to recover a doctor's or hospital's expenses.

Haul out and review you current policy, then call your insurance agent for details.

Q. I recently received a fairly large inheritance from my father and would like to use part of the money to buy a small vacation home for my family. Do you have any buying tips?

A. Sure. For starters, don't be afraid to drive a hard bargain with a seller. Many second-home markets across the nation have suffered even sharper price drops than full-time communities, and cash-rich buyers like you are in an especially good position to get the best deals.

Remember to be practical. That includes looking for a second-home spot that's no more than a three- or four-hour drive away from your full-time residence, or an inexpensive and short plane ride away, so you can spend more time having fun at your getaway spot instead of traveling to and from it.

Also visit the area at least two or three times, in different seasons of the year, before you make an offer. Spending a few days in sunny Palm Springs in the dead of winter sounds great, but going there in the summer — when temperatures often top 115 degrees — might not be as fun.

Finally, realize that vacation homes with the best resale potential are usually near a lake, ocean or a mountain that doubles as a ski resort, or close to some other type of natural amenity. Resort developers can always build another golf course or swimming pool, but they can't replicate Mother Nature.

Ÿ For the booklet “Straight Talk About Living Trusts,” send $4 and a self-addressed, stamped envelope to David Myers/Trust, P.O. Box 2960, Culver City, CA 90231-2960.

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