Some foreigners choose to take on a US investment. Sometimes they see it as a more secure way to earn money. In other cases a US investment of a significant amount, usually half a million or more, will secure a place for that investor and his family in the United States.
A large US investment by a foreigner can allow the foreigner, his or her spouse and any children under the age of 21 to legally live in the United States for as long as the investment has been made. One of the biggest types of US investment completed by foreigners is property investment or real estate investment.
Some countries are more likely to make a US investment in real estate than other countries. The US Department of Commerce keeps track of which countries make the biggest US investment in real estate. The most recent numbers say that of the top seven countries that invest the most in US real estate, Germany is at the top and the Netherlands is at the bottom.
Of he total amount of significant holdings in US investment in real estate, Germany holds 13% as does Latin America. Australia holds 11%, Japan holds 10%. The UK also holds 10%. Canada, the United States closest neighbor, ties for last place with the Netherlands and holds about 6% of the significant real estate investment in the United States.
The American economy encourages foreigners with money to make US investments. This is because it benefits the country as a whole, but also provides benefit to the foreigners. A NAR study says that US investment by foreigners is so crucial to the American economy that without these foreign investments, lending rates for long term loans could be significantly higher than what they are now. Estimates of rate increases of as much as 4 percentage points have been estimates. Such a drastic increase in lending rates could significantly impact the US property market and be devastating for many Americans.
There are other benefits of US investment to the States. It can create more jobs and helps increase the demand and value for US property market. Some studies suggest that foreign investment might be responsible for creating as many as 2 million jobs in the US.
The impact of foreign US investment plays a major role in the United States economy. When the investment is real estate related, it also plays a significant role in the real estate market. The Joint Center for Housing Studies at Harvard University says that foreign real estate investment is responsible for bringing in 1.2 million immigrants into the United States every year.
Some would argue that more people coming to the United States takes away jobs from people currently living in the country. This is one way to look at the consequences of US investment. Another look is that with so many new people coming into the country, more jobs are needed to supply and service these people with what they need.