Some important things to consider if immigrating to the USA is on your mind

To use the age old adage there is a right time and a wrong time to do things and for those planning to grasp the opportunity to retire or live permanently in America via the EB5 visa now may be the time, whilst next year may be too late.

There are several reasons to believe that this may be the case and they are not simply due to the fact that the EB5 investment visa pilot programme which allows permanent residence, work or retirement anywhere in the USA is due to end in September 2008, after all there is the chance it may be extended.

It is also not down to the fact that those planning such a move with older children i.e. those approaching 21 who need to act decisively before the children age out, as this process is referred to in the words of the US immigration service!

No, there are other equally pressing reasons why those planning to relocate in the next few years may need to act sooner rather than later.

For a start there are practical issues associated with finance and timing which are so often identified once it is too late.

To begin with the cost of the investment visa is $500,000, although nearer $550,000 by the time administration and legal costs are added. At the time of writing when the dollars woes are very much headline news this equated to 250,000 Pounds, 350,000 Euro, 550,000 Canadian Dollars or 4.000.000 Rand or Hong Kong dollars.

However a few years ago that $550,000 investment would have cost the emigrant 370,000 Pounds, 550,000 Euro or 660,000 Canadian Dollar which meant those emigrating then paid a whole lot more for exactly the same result.

There are many leading economists who take the view that it’s only a matter of time before history repeats itself with the dollar bouncing back against other currencies meaning you would again have to pay considerably more to make the move.
Many immigrants will want or need to sell their home before retiring or making a permanent move to the USA. Currently the US housing market is on its knees and the country seems poised to go into recession, so much so that it is possible to buy property at 20% plus off prices; which seem a steal particularly against UK and European prices.

However it should be remembered how suddenly this downturn occurred in The USA. 2005 was a record year for house sales before the market fell of the cliff. Since then many house builders have stopped building and inevitably what goes down goes up – so in two years time you could pay far more for your piece of America. (Bear in mind visa applications are likely to take at least a year) This is particularly likely if you are eying prime waterfront property which was previously absolutely unaffordable for many but presently unbelievable deals are being agreed.

Then of course there are price trends to consider with your own property in the UK and Europe where experienced commentators including the international money fund are forecasting greater falls than America has experienced.

Add to this currency scenario the impact of the various big ticket items you will need to buy when relocating to the USA from car to house furnishing and the present favourable currency scenario again presently works in your favour.

©Stephen Parnell