I don’t think this is a win-win policy, as some have said. For one, it will create upward pressure for house prices, so that less and less Americans will be able to afford houses.
Foreigners who want to buy houses in the US are already doing it, so this “extended tourist visa” proposal is not likely to increase the existing foreign demand noticeably.
And why do we need foreigners? There are plenty of cash-rich American investors ready to come in, buy houses, fix them up, and then rent them out at affordable levels. All we are waiting for is for Congress and the White House to stop doing everything they can to keep housing prices artificially inflated.
Once house prices come down to reality, investors will come in and buy. Families that are upside down or at risk of default will be able to stay in their houses, simply by changing their status from overextended debtors to renters, and problem solved. Years later, as these families accumulate savings and build a credit history, they’ll be able to buy the houses back with 20% down loans.
