Canadian canceled investment immigration, China wealth steering to Australia
Date：2014/07/24
[Worldjournal.com] Canada cancel the federal immigrant investor program on February this year, and more than 60,000 backlog application invalid. In contrast, Australia introduce of new immigration investment fund, although up to AUD 5 million, but still attracts more than 1000 application, most are from China. Immigration agency believe that these rich people could bring 10 billion investment fund each year, additional with investment on real estate market.
Australia recently launched a ‘Significant Investor Visas’ (SIV), investment amounted of AUD 5 million. According to the regulations, investment immigration will be require to purchase government bonds or qualified capital construction, real estate or agricultural funds.
This 5 million investment for a time limit of 4 years. Getting of permanent resident after continue 4 years living in Australia for minimum of 40 days/ year. Currently there are at least 60 foundation qualified for SIV has locked target to China wealthy who have the intention to immigrant.
By ended of June, more than 1,000 application, 91% from China and 4% from Hong Kong.
Partner of Australia Baker & Mckenzie Limited Liability partnership (LLP) Mr. Bill Fuggle pointed out, SIV plan could bring 10 billion investment fund. Following with Canada cancel the investment immigration, and accelerate the approval of the Australia funds, the firm expected that will be more China wealthy will select SIV.
Nonetheless, an annual increase of 10 billion fund, plus with newcomer’s real estate purchase fund, still not reached with AUD 1 trillion and 700 billion Australia retirement annuity. Ended last June, Australia foreign investment amounted to 135.7 billion, foreign purchaser of real estate reached 17% in Melbourne, Victoria State, Sydney ratio of 12%.
Last year a survey showed, for wealthy who have net asset of RMB 10 million or above, 6% have immigrated or intention to immigrant, These people with non- oversea investment, half of them plan to carry out. For those foreign investors, 60% considered to raise the stakes.
Bill Fuggle noted that, every application of investment immigrant that he handle are bring into more than 5 million funds, they are willing to bring more than 20 million. Although funding for purchase of real estate cannot be counted into 5 million investment fund, but he said vast majority of immigrant will invest in local real estate market.
Statistic show last June, the funding of China investor to purchase Australia real estate has increase of 42%, amounting to AUD 5.9 billion. China has surpassed the United State, being the largest foreign purchaser of local real estate market.