US Real Estate

What’s the biggest economic problem facing the US today? I’m sure we could debate that for some time but we’d probably agree that high unemployment and the disastrous real estate market are near the top of the list.

Housing prices have collapsed, leaving lenders with trillions in bad loans, owners with properties that they can’t sell, and which are worth substantially less than they paid for them - and often more than they are mortgaged for. And with this glut of properties available, new home construction and the jobs it creates, are in the doldrums. Nothing the US has tried to solve the problem has worked to solve the problem.

Thinking outside the box, here’s one solution I present for your consideration.

On the northern border of the US you have 33 million Canadians who are not having the same economic problems as Americans. Many of those Canadians are of the baby boom generation and they are retiring and seeking a nice warm spot to spend their winters or longer. In addition the Canadian dollar is currently about on par with the US dollar making it significantly cheaper than ever for Canadians to buy property and consumer goods in the US.

Americans aren’t buying and American banks aren’t lending. Shouldn’t you, Captain America, be making it easier for people who HAVE cash to buy US property and live in the US? People like your Canadian neighbors?

In 2009 and 2010, US real estate is estimated to have lost almost 3 trillion dollars. So are the US government and the various state governments making it easier for Canadians and other well-off foreigners to help clear up some of their real estate glut? Not at all. Federal tax rules make it difficult for foreigners to own property.

States like Florida make non-residents acquiring real estate pay higher realty taxes than full time residents. So as part-time residents, foreigners in Florida pay MORE for using LESS of the state’s services than full time residents. That may have been beneficial during boom times, but it does nothing for you during the current lean years.

We all know the beneficial trickle down effect of home buying. It leads to renovations and remodeling, sales of furniture and appliances, real estate commissions, increased sales tax and property tax revenue and most of all JOBS, jobs and more jobs. So in one move you can help the real estate problem by making property more attractive to millions of prospective new buyers, AND create work for your resident population. Seems so simple and logical does it not?

I’m not talking about opening up your gates to migrant workers. I’m talking about opening your arms to welcome people with money to spend. It seems obvious that if tourists spend money, then foreigners who stay for months will spend even more money.

What are you waiting for Captain America? Isn’t it TIME to think outside the box?