Property Investment – Chinese Visa Surge
GOLDEN TICKET VISAS SURGE
Rich foreigners with the equivalent of $405 million investment applications for visas were approved in April and May.
The “golden ticket” visas were issued to eighty-one successful applicants, the most issued since the program started in late 2012. Of those, eighty-five per cent were issued to Chinese nationals. So far, 255 visas have been issued by the Department of Immigration and Border Protection worth $1.28 billion sine the launch of the program.
To be eligible for the program, foreigners must invest a minimum of $5 million in government bonds, Australian proprietary companies or ASIC-regulated managed funds. The visa allows the receiver and their family to migrate to Australia and after four years they can apply for permanent residency.
Compared to other migrant visas the recipient has no age limit or standard English language proficiency requirements. Majority of the visas have been issued to people investing in NSW and Victoria schemes.
The NSW government’s Waratah Bond program is among those to have seen an uptick in investment. $1.5 million is the minimum investment over a four year, fixed rate with foreigners apply to be part of the program granted they have obtained a NSW government sponsorship.
Chief executive of ASX-listed Centuria’s, Jason Huljich says, “The vast majority of money is going into bonds. Investors want to put their money into something they believe will 100 per cent preserve their capital base. They don’t care that much about low returns”.
There has been a significant growth in interest in the visa program since the cancellation of long-running Canada’s immigrant investor program. It was cancelled in February with a waiting list of 59,000 people.
Michael Burstin of Oliver Hume Funds Management said “We now have over $30 million committed to our fund and expect a further $20 million once current visa applications are approved later this year.”
Bonds are considered an easy alternative for investors who are either unwilling or unable to identify worthwhile private funds to invest in.
Prudential Finance has many property investment opportunities and Tech Startup investment opportunities, go to our Investment page http://www.pru.com.au/property-investment or call 1300 550 669.