Canada’s real estate market | Armonk Real Estate
Last month, the Canadian government announced the termination of the Immigrant Investor and Federal Entrepreneur programs. This canceled the applications of approximately 65,000 individuals who were on the waiting list backlog for these two programs.
Given that 70 percent of these applicants were from mainland China, and given the importance of Chinese investors to the Vancouver property market (especially in the high end), many analysts have predicted that this change in government policy will have a significantly negative effect on Vancouver-area real estate values.
Before assessing what the true impact will be, let’s consider how these programs functioned, and where they had the most impact.
The Canadian government introduced the Immigrant Investor Program in the mid-1980s in order to promote immigration by business people and their families. Quebec subsequently negotiated with the federal government to have its own, parallel program.
The programs enabled qualified investors to obtain permanent resident status in Canada and put them on the pathway to full citizenship. To qualify, applicants needed at least two years of business management experience, have minimum net worth of $1.6 million (Canadian) and be willing to make an investment of $800,000 in the form of an interest-free loan to the government for five years. They also had to meet certain health and security requirements.
- See more at: http://www.inman.com/2014/03/17/canadas-real-estate-market-will-take-demise-of-millionaire-visa-program-in-stride/#sthash.jh5Mr0iY.dpuf
Given that 70 percent of these applicants were from mainland China, and given the importance of Chinese investors to the Vancouver property market (especially in the high end), many analysts have predicted that this change in government policy will have a significantly negative effect on Vancouver-area real estate values.
Before assessing what the true impact will be, let’s consider how these programs functioned, and where they had the most impact.
The Canadian government introduced the Immigrant Investor Program in the mid-1980s in order to promote immigration by business people and their families. Quebec subsequently negotiated with the federal government to have its own, parallel program.
The programs enabled qualified investors to obtain permanent resident status in Canada and put them on the pathway to full citizenship. To qualify, applicants needed at least two years of business management experience, have minimum net worth of $1.6 million (Canadian) and be willing to make an investment of $800,000 in the form of an interest-free loan to the government for five years. They also had to meet certain health and security requirements.
- See more at: http://www.inman.com/2014/03/17/canadas-real-estate-market-will-take-demise-of-millionaire-visa-program-in-stride/#sthash.jh5Mr0iY.dpuf
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