Posted on
August 11, 2011
by
Bob Sethi (RE/MAX Westcoast)
Posted in
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Changes to Canadian Immigration Rules
On June 24, the federal government instituted rule changes related to new applications under the Federal Immigrant Investor Program (IIP), the Federal Skilled Worker Program (FSW) and the Federal Entrepreneur Program. The changes are as follows:
- Federal Entrepreneur Program: A temporary moratorium on new applications.
- Federal Immigrant Investor Program (IIP): A cap of 700 new IIP applications will be considered for processing each year.
- Federal Skilled Worker Program (FSW): A cap of 10,000 new FSW applications, without an offer of arranged employment, will be considered for processing each year. Within the 10,000 cap, a maximum of 500 new applications per occupation will be considered each year.
BC, and Vancouver in particular, has been one of the primary recipients of immigrants under the IIP, accounting for half of total Canadian investor class immigration. From 2005 to 2010, over 30,000 investor class immigrants have located in BC, an average of about 5,000 per year. This number relates to roughly 2,000 households per year.
Implications
The Government's stated reason for instituting the application cap is to reduce a backlog in applications and to shorten wait times. In 2010 there were 3,223 applications approved under the IIP and the government has indicated that it has received applications well in excess of that number in recent years, creating a large backlog of applications. It has not indicated that it wishes to lower the number of immigrants processed under the IIP, but simply to reduce the current backlog.
Therefore, as old applications are still being processed, the implementation of the new rules may not have an impact on the number of immigrants entering under the IIP and therefore may not have a material impact on BC housing markets.
All information subject to verification by independent legal advice.
Posted on
May 31, 2011
by
Bob Sethi (RE/MAX Westcoast)
Posted in
agricultural land reserve, ALR, apartments, BC, BC Real Estate, high density housing, Immigration, Mainland China, Metro Vancouver, MV RGS, Regional Growth Strategy, Richmond, Schools, towhomes, Vancouver
Think housing in Vancouver is too expensive? That Metro Vancouver is becoming a market only for the rich or foreign investors? Seems local housing experts don't think so and they've got the numbers to back it up.
Tuesday's Globe and Mail interviewed Vancouver multi-family real estate marketer Bob Rennie and housing consultant Dale McClanaghan regarding Rennie's argument that Vancouver real estate is not expensive. Rather, as the stats prove, its prices in Richmond and Vancouver west side that are skewing market perceptions. With 30-year old single-family homes in Richmond selling between $800k-$1.3m and similar homes in Vancouver's west side selling for more adding those sales into the local stats is creating the perception that all of Metro Vancouver is expensive. Blaming foreign investors for driving the prices up is also not accurate. Rather, the buyers are new immigrants looking for the best homes for their families. With safe streets, plenty of schools, government supported medical system plus all the other reasons you and I choose to live here, who wouldn't want to live here?
Both Rennie and McClanaghan do agree that Metro Vancouver does need to do more to ensure a supply of mid-priced housing. This goal is the same shared by other large cities except Metro Vancouver's policies are not allowing for room to grow or a supply of land for housing.
Metro Vancouver's Regional Growth Strategy (MV RGS) has met heavy resistance from housing affordability experts and the housing industry. The MV RGS is designating where and what type of housing can be built. In most cases that means high-density multi-family apartments or townhomes with little allowance for new single-family homes. The MV RGS also locks away buildable land for the next 30 years continuing to drive up the cost of land and the (multi-family) homes built on it. The majority of these lands include ALR properties - lands that are not viable for farming due to small size, poor soil conditions or proximity to residential/industrial properties but more than suitable for housing. While these policies may win Metro Vancouver politicians points with special interest groups they are failing to address the current or future needs of homebuyers by limiting the supply of land to build single-family homes. After all, if buying a house is just attainable for current homebuyers how will future generations buy a home?
Read more of the interview at http://www.theglobeandmail.com/news/national/british-columbia/busting-the-myths-of-vancouver-real-estate/article2033738/ (The Globe and Mail, May 24, 2011)
If you have any questions or comments feel free to contact me directly.
Curious where home values in your neighborhood are going? Click here to find out.
Bob Sethi, BComm RE/MAX Westcoast o. 604-273-2828 f. 604-273-0685 e. bob@bobsethi.com
w. www.bobsethi.com
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