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How Canada’s new immigration rules could slow high end real estate sales

How Canada’s new immigration rules could slow high end real estate sales

Canada’s luxury housing market has already been impacted by changes to immigration policy and could be in for rougher times as foreign investors are lured to the United States.

‘I know what our campaign commitments are and I stand by those commitments,’ Tony Clement said. Echoed Jason Kenney: ‘We made a platform commitment’

CIBC Deputy chief economist Benjamin Tal said now that the federal budget released Tuesday has closed a loophole offering a shortcut to wealthy investors, he thinks it could have an even greater impact on housing markets in Vancouver and, to a lesser extent, Toronto.

“They basically had stopped the program,” said Mr. Tal, about the Immigrant Investor Program which fast-tracked permanent residency for people who could come up with $800,000. The money ultimately served as a interest-free loan to the government that was paid back to the immigrant in five years.

A story in the South China Morning Post found there are 45,000 wealthy Chinese immigrants, with a combined worth of least $12.9-billion, waiting to get into Canada under the program. The number of applicants is six times higher than the number for similar programs run by the U.S., Britain and Australia, the newspaper said.

“There is also little evidence that immigrant investors as a class are maintaining ties to Canada or making a positive economic contribution to the country,” the government said, adding immigrant investors pay significantly lower taxes over a lifetime than other categories of economic immigrants.


Source: www.financialpost.com