46,000 wealthy immigrants invested in Toronto’s and Vancouver’s RE market even though they were supposed to settle in QC

Image credits

GlobalNews.ca has published a very intersting article regarding the 46,000 wealthy immigrants that took advantage of the Quebec Immigrant Investor Program (QIIP). Read the original article here.

Here is what wealthy foreigners had to do to gain citizenship:

  • Have a net worth > $1.6 Mil
  • Make an interest deposit of $800,000 for 5 year

Here is the problem

  • Quebec government gets the investments
  • Other provinces (mostly Ontario and B.C., see chart below) had to shoulder most of the financial burdens of these imigrants

 

 

Image credits: globalnews.ca
  • Here is a breakdown of the 57,935 investor immigrants that came into Canada through Quebec’s program as of 2016:
    • 28,000 of them (48.3 per cent) were living in B.C.,
    • 22,000 (37.9 per cent) were living in Ontario, and
    • only 6,050 (10.4 per cent) were living in Quebec.
  • Why would foreign immigrants have such a large impact? Simple. The chart below illustrates the rift between the average net worth of an immigrant and that of an average resident in the two popular provinces, Ontario and B.C.
Image Credits: Globalnews.ca
  • What impact does this have on housing? There is no way of nailing down a number, but it is easy to imagine that once these wealthy immigrant purchase homes in expensive neighborhoods, residents gets booked to the next best neighborhoods, and so on. Eventually creating an environment were rental prices have shot up drastically.
Image credits: cutwatersolutions.com

 

Hadi is Honours civil of engineering graduate with solid project management experience in the construction industry. Solutions-focused, results-oriented with strong business acumen and entrepreneurial spirit. Currently, he is working as an assistant site-superintendant with Darcon Inc. at one of Vaughan's biggest developments, Centro Square.

Leave a reply:

Your email address will not be published.

Site Footer