Is it time for the Federal Immigrant Investor Program of Canada to be revived?
2019-11-20 –Canada will suggest reviving the discontinued Canada Immigrant Investor Program as the US lifts contribution thresholds for the EB-5. Considering that the US is proposing a huge 80 fold jump in minimum contributions for the EB-5 scheme, it is time to question the reasoning behind Canada’s decision to ignore investment immigration fully.
When it was launched in June 2014, the Canada Immigrant Investor Program was one of the most sought after investment visa programs in the world.
High demand from wealthy investors included the explanations for its termination.
Due to the influx of foreign funds into the market, real estate prices rise.
For these reasons, investment immigration consultants programs were criticized for a long time. on the other hand, there are additional than 65 countries contribution wealthy investors some form of fast-track route to enduring residence or straight citizenship.
In 2019, the earth is much different from 2014, and Canada has convincing reasons for seriously bearing in mind reviving its Immigrant Investor Program.
Immigration Hotspots Stand Apart
There are countries belligerent to attract depositor awareness despite offering only $100,000 in a second passport. And countries like the US are likely to remain the preferred destination despite the investment hike for wealthy investors and ambitious professionals.
The EB-5 is one of the few investment immigrationprograms that require investors to create jobs.
Given the belief that shareholders prefer all other alternatives to passive assets, demand for the US EB-5 has gradually increased over the years.
The revised Significant Investor Visa from Australia prohibits direct investment in residential real estate and further requires investors to allocate a fixed percentage of their $5 million investment to venture capital and start-up-cantered funds.
The SIV system has not failed and appears to attract interest from investors, contrary to doomsday predictions.
Canada is such a popular option that it can enforce difficult criteria and conditions and attract investors.
The H-1B Factor
The U.S. H-1B program, fully dominated by Indians, is a program of work permits aimed at skilled and highly qualified foreign professionals. The program has been the target of negative administrative decisions and adverse legal rulings over the past few years, especially after the election of President Donald Trump. The uncertainty surrounding the H-1B visa is considered a major factor contributing to an increase in Indian professionals ‘ applications for permanent residence in Canada.
Indian investors ‘ EB-5 requests growing as the H-1B uncertainty developed. Today, after China and Vietnam, India is the third country facing the retrogression of the EB-5.
Wouldn’t Canada benefit an alternative path to Canadian permanent residence by providing these highly skilled and affluent professionals? In order to create real value benefits for the Canadian economy, the revived program could be tailored to focus on active investment in business.
Canada stands to gain all and risk nothing by reviving its development immigration consulants program with the American dream turning sour for refugees. When demand remains weak or the incentives do not materialize, it is always possible to shut down the program again.
Immigrants Are Burning Canada Short Sellers
Attracting talent from all over the world has helped prevent the country from sustaining economic damage.
Since then, Canada has been a key target of short sellers. The main reasons are the very expensive housing of the nation, particularly in Toronto and Vancouver, and the rate of consumer debt among the highest in the world.
Canada also has a large private mortgage market that provides credit when banks are not supposed to. The vulnerabilities are hard to argue. And yet the housing market in Canada has not crashed.
We were a very outspoken Canadian short seller, and we are not prepared to officially declare the deal, even though the stock market has reached new heights and the local currency has been improved. But we do understand the big reason why the exchange did not work as planned: immigration.
Canada’s immigration policy is very progressive and does not seem as divisive as it would be in the U.S. Canada requires 250,000 to 300,000 people to lawfully enter the country each year, around 1 percent of the population.
Society is incredibly diverse, no matter where you go in the world. Complaints such as those of Don Cherry, a popular football analyst, are quite uncommon. Immigration is efficient, and it’s an enormous economic force. Gross domestic product is output in the simplest terms, and if you have more people working at a constant productivity level, you will have more output.
Canada, of course, has some economic problems in addition to a heated housing market. In a kind of perma-recession, it’s most critical sector, oil. The government refuses to allow pipelines to be constructed, and a carbon tax by Prime Minister Justin Trudeau is a drag on development. Nonetheless, population growth — mostly through immigration— is high and has compensated for the negative effects. Different economic studies have shown that low growth and low inflation in countries where the population is declining. By comparison, there is faster growth and favorable unemployment for those with growing populations.
Canada’s question of consumer debt is a completely different issue. Canadians have a level of comfort with debt that Americans no longer do, so after the global financial crisis they have never really deleveraged.