Thread: New law has Latinos skittish about buying homes in Georgia

http://hispanictips.com/2006/06/23/new- ... n-georgia/

New law has Latinos skittish about buying homes

06/23/2006

By Chris Megerian
Staff Intern
chris.megerian@gwinnettdailypost.com

NORCROSS - Fewer Latinos are buying homes in the Atlanta area because of Georgia's new immigration law, one of the strictest in the country.

Some Latino Realtors in Gwinnett County, which has the highest concentration of Latino residents in the region, have felt the crunch as Hispanics grow increasingly nervous about their future in the state.

Felipe Bernal, a Realtor based in Norcross, said he's seen a sharp decrease in the number of Latino homebuyers in Gwinnett, Cobb and Rockdale counties. Instead of closing deals on about seven homes a month, he's only selling three or four.

He said more than five people pulled out of contracts after their loan was approved, sacrificing about $1,000 each in down payments.

"They told me, 'I don't care. My wife is not legal, my brother is not legal,'" Bernal said. "They're afraid most of them are going to lose their jobs."

The Georgia Security and Immigration Compliance Act, signed by Gov. Sonny Perdue in April and scheduled to go into effect in July 2007, requires verification of legal residency in order to receive many public services in Georgia.

It also aims to discourage employers from hiring illegal immigrants, preventing employers from receiving state income tax benefits if they hire undocumented workers and requiring them to verify their employees are legal residents if they are working on a state contract.

While the law does not directly affect homebuying by illegal immigrants, the confusion and uncertainty it has created among Latinos in Georgia has changed the way they look at long-term investments, such as buying a house.

Some Latino Realtors said people are more afraid of the new law than they should be, their fears spurred by word-of-mouth reports and media hype.

"They feel that people are just going to come and take away their homes," said Alina Arguello, a Re/Max Realtor based in Marietta. "Once things calm down a bit and they get better details of what is going to happen, that will put them at ease."

Arguello, whose customers are primarily Latino, said her business has dropped off significantly in recent months. Because calls from Latino homebuyers have plummeted from 10 to two a day, she's resorted to cold-calling potential customers and handing out business cards in front of the local Wal-Mart to stoke interest.

"I have the inventory," Arguello said. "But the inventory doesn't do me any good if I don't have the buyers for it."

Even legal residents have reconsidered their future in the Atlanta area. Norcross Realtor Diego Castaneda said one potential homeowner held off on buying a home in Gwinnett because his business - wiring money to and from other countries - caters mainly to Latinos, and he was unsure if his customer base would be moving out of the area.

Gwinnett has enjoyed a booming housing market in recent years. The county has added 33,600 single-family units since 2000, more than twice as many as any other county in the region, according to the Atlanta Regional Commission.

"Gwinnett is the main source of our business," said Alex Morfin, general manager of the real estate company EMTI Investments in Duluth, which serves mainly Latino customers.

Latinos have been purchasing more homes in the Atlanta area in the past few years - from 3,500 in 1999 to 8,500 in 2004, according to data from the Home Mortgage Disclosure Act.

Not all Realtors have taken a hit because of fear stemming from the new law. Carlos Hernandez, a Keller Williams Realtor based in Duluth, said only a few of his primarily Latino customers expressed nervousness over buying a house in the area.

Miguel Hawkins, assistant vice president at HomeBanc en Espanol in Atlanta, said two of his clients, a husband and wife, were unsure about investing in a home, but once they learned more about the new Georgia law they felt comfortable about going through with the sale.

Teresa Palacios Smith, vice president of business development and cultural initiatives at Prudential Georgia Realty, said despite discouragement over the new law, Gwinnett in particular remains very attractive because of low housing costs and its growing Latino population.

Isaias Gonsalez recently purchased a duplex in Norcross. He left his rented apartment in Los Angeles four months ago, drawn to Gwinnett by low costs and the growing economy.

Realtor Roberto Olortegui said some of the uncertainty in the Latino community stems from the turmoil over immigration legislation in the U.S. Congress.

"There is something in the air that makes the potential buyers just hold off," he said.

The House of Representatives and the Senate have each passed separate bills, with one key difference between them - the Senate bill would allow illegal immigrants who have been in the country for at least five years to apply for citizenship.

It is unclear what impact federal legislation could have on the national housing market. Gary Acosta, founder of the National Association of Hispanic Real Estate Professionals, recently estimated that homebuying by illegal immigrants pumps $65 billion into the overall first-time homebuyer market, about 12 percent.

But homeownership has grown easier for illegal immigrants, with more lenders accepting individual tax identification numbers, which are assigned by the Internal Revenue Service to allow illegal immigrants to pay their taxes, instead of Social Security numbers. In addition, Latinos are projected to comprise 40 percent of first-time homebuyers in the U.S. by 2012.

As Congress ponders which direction it will take, potential Latino homeowners remain uncertain of their future in the country, Atlanta and Gwinnett.

"They don't know what the future holds for them," Smith said. "If they were ever nervous about buying, they are now."

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In addition, Latinos are projected to comprise 40 percent of first-time homebuyers in the U.S. by 2012.

Which I guess leaves the rest of us renting our re-posessed homes.

Originally Posted by crazybird

In addition, Latinos are projected to comprise 40 percent of first-time homebuyers in the U.S. by 2012.

Which I guess leaves the rest of us renting our re-posessed homes.

You said it perfectly, Crazybird.

In addition, Latinos are projected to comprise 40 percent of first-time homebuyers in the U.S. by 2012.

Not if we can get our federal government to do their job and enforce the immigration laws!

recently estimated that homebuying by illegal immigrants pumps $65 billion into the overall first-time homebuyer market, about 12 percent

They should be able to buy a house.....since they avoid taxes, get free health care, wic cards, etc. We struggle to buy a home and they have programs that make their down payment for them and get lowered interest rates. It would appear that all those construction jobs and building is just building houses for themselves. It's hard not to think that there is a deliberate effort to integrate the entire country of Mexico into the USA. I can't even imagine the next 20 years if something isn't done. We won't be here as the Nation, we are today, I'm afraid.

Originally Posted by chris megerian

recently estimated that homebuying by illegal immigrants pumps $65 billion into the overall first-time homebuyer market, about 12 percent.

$65 BILLION? If this is true..... What percent of illegals are homeowners? Most illegals are diseased dirt-bag criminals.

Basis to run the numbers.....

Percent of illegals who are homeowners
includes single household and head of household of multi-family dwellings.

Mean price of illegals' single and multi-family homes.

If the mean price is oh, about, $65,000.
Then 65 billion / $65k = 1 million illegal alien homeowners.

If the average illegal alien family size is 4, then that means that
4 million illegals are under the roof of a homeowner owned house.

Therefore, hmmmm. Then roughly 18 percent of illegals reside in a homeowner owned dwelling. However,

If we estimate that half of those actually live in multi-family dwellings, hence, 6 million illegals are under the roof of a homeowner owned house, then 27 percent of illegals reside in a homeowner owned house.

If the estimate that there are 40 million illegals living in the US is the basis, then the percentage of illegal alien homeowners and families is roughly 10-20 per cent.

The solution: We need federal legislation requiring US citizenship for property ownership (homes and motor vehicles). AND invalidate all illegal alien property ownership. This means EVICT and DEPORT .

I can see it now. Get out the crying towels. We'll be expected to feel sorry for mortgage companies and realtors. Well boo hoo!!!

How likely is such legislation at the federal level? The Trilateral Commission would veto it. .

All you illegals out there, if you don't like what I post, then call your friend, Teddy Kennedy. You have this in common with "your" senator - vehicular homicide!

I'd like to see the number of illegal aliens buying homes in this area drop down to ZERO! If that realtor is expecting our pity and compassion, he has a LONG WAIT.

Originally Posted by PintoBean

I'd like to see the number of illegal aliens buying homes in this area drop down to ZERO! If that realtor is expecting our pity and compassion, he has a LONG WAIT.

Hi Pinto Bean,
Well said!!!

Realtors and Loan officers may discover that evicting non-paying illegal tenents will be extremely difficult. La Raza will play the race card and keep the dirtbag in the house (for free) for months or years while they tie it up in litigation.