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
- 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.
- 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.