Vancouver’s Chinese community seemed to harbor wealthy real estate investors that would gain citizenship and move their family here even though they would still reside and do most of their business in China. In early February, 2014 the Federal Government
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In early February, 2014 the Federal Government of Canada decided to reform its immigrant investor program. Ian Marlow from the Globe and Mail reported on Tuesday, February 11 that many Canadians criticized the program as a way for wealthy foreigners to purchase citizenship without residing here. Vancouver’s Chinese community seemed to harbor wealthy real estate investors that would gain citizenship and move their family here even though they would still reside and do most of their business in China.
The immigration investor program granted foreigners with a net worth of $1.6 million or more, residency and possibly even citizenship. The applicant would have to first lend the Canadian government $800,000, which would be reimbursed within 5 years without interest.
Ryan Rosenberg, a local immigration lawyer noted that Vancouver has turned into a “bedroom community for the world,” where foreign investors generate the majority of their income and pay taxes in in other countries although their families are here. And some of the families even qualify for social assistance. “They would drive to their free ESL classes in their $80,000 Mercedes,” said Mr. Rosenberg.
Vancouver Point Grey real estate authority Sam Huang said, “Many people are afraid the cancellation of Canada’s investor program will mean rich immigrants will no longer come to Canada. The fear is that this will translate into less demand in high-end real estate, like Point Grey homes.” Point Grey is one of Vancouver’s oldest and most renowned neighbourhoods. The neighbourhood is widely sought after by foreign investors and immigrating families for its safety, peaceful atmosphere, and convenience to both downtown Vancouver and the University of British Columbia.
“There may be a short term effect on Point Grey real estate,” says Huang, “but if there is a dip in the market it will come from weakened confidence rather than an actual decrease in demand. Certainly there will be less immigrants coming and buying less real estate. However, the effect will be minimal. From my experience, wealthy individuals don’t necessarily to have immigrant to Canada to buy real estate. High net worth individuals often have properties in many counties, for example, Hong Kong, Canada, and the United States. In the long run, the price of real estate in Point Grey and Vancouver will continue to rise in spite of the cancellation of the immigration investor program.”
PRWEB