FFFA! Spring is sprung!

Hey! Welcome back!

Its that time of the week again, Friday free-for-all time!

Time to do our end of the week news roundup and open topic discussion thread for the weekend.

-we need to add links here.

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

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it doesn't look good
Guest
it doesn't look good

“We want Chinese investors in Canada and the door is open,”

Our Federal pimps have have whored us out again.

http://www.vancouversun.com/business/Hong+Kong+audience+hears+plans+Canadian+immigrant+investor+program/9643664/story.html

Son of Ponzi
Guest
Son of Ponzi

The Canadian passport should be earned, not paid for.

Yellow Helicopter
Guest
Yellow Helicopter
A sign of things to come on the West Side and West Van? “Cash-strapped Chinese are scrambling to sell their luxury homes in Hong Kong, and some are knocking up to a fifth off the price for a quick sale, as a liquidity crunch looms on the mainland. Wealthy Chinese were blamed for pushing up property prices in the former British territory, where they accounted for 43 percent of new luxury home sales in the third quarter of 2012, before a tax hike on foreign buyers was announced. The rush to sell coincides with a forecast 10 percent drop in property prices this year as the tax increase and rising borrowing costs cool demand. At the same time, credit conditions in China have tightened. Earlier this week, the looming bankruptcy of a Chinese property developer owing 3.5 billion yuan ($565.25… Read more »
crabman
Guest
crabman

If, as the Immigration Minister claims, rich immigrants don’t drive up housing prices, then why is Spain trying to get it’s housing prices up by giving visas to rich immigrants?

http://www.prnewswire.com/news-releases/spain-approves-immigration-residency-visa-for-500000-euro-property-investment-225850701.html

Son of Ponzi
Guest
Son of Ponzi

#4
remember, it’s different here.

registered
Member
registered
@4: I can’t make sense of anything Alexander says. My impression of the IIP was that the applicant had to demonstrate person economic value to the country through a willingness to commit to business development and jobs. Instead it now appears to be a commitment to lend private fund managers…. “Alexander said the new fund would be privately managed and a competition would be held to select the managers.” …a longer, larger interest free loan to do it instead. If that’s the case it’s an even cheaper federal grift. Harper found a new and novel way to funnel money to financial industries. Who cares if that ‘investment’ sits with government selected fund managers (would love to see the management fees) for 10 instead of 5 years when interest rates are near zero. It still equates to an essentially free lifetime… Read more »
David Lee
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David Lee
@ it doesn’t look good and to the rest who believe hot money is a large part of the affordability problem: We need to do something about the “new and improved” IIP, but what? I will write to Chris Alexander and the Feds (as previously suggested), but I’m guessing that that won’t be enough (read “The Longer I’m Prime Minister”) and you’ll get what I mean (BTW, I’m assuming with our budding MSL (Mandarin as a Second Language) mayor and Crusty, it’s probably pointless to get anything done at a municipal or provincial level; they are in full pimp mode). It seems that democracy only happens every few years and those that have taken the cheap money to “get on the ladder” have a vested interest in keeping the laundry machine going. And it seems like there are a lot… Read more »
mac
Member
mac

It’s not that complicated guys, nor is this news. Just look at the AUS new 188 & 888 wealthy investor visas written specifically for the MC. It’s not like government bureaucrats are that creative, they just copy each other.

Van Coffee
Guest
Van Coffee

Who says it is a larger interest free loan? The SCMP article implies otherwise.

I believe they are introducing a program that forces IIP applicants to put up AT RISK funds. This is fundamentally different, and the uptake will be dramatically lower.

I don’t have my panties in a knot…..YET

VC

An Observer
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An Observer
One thing to keep in mind is that the proposed change to the IIP makes it more comparable to the US EB5 visa where investors give $800K of un-guaranteed funds to be used to directly create jobs which must be documented. The EB5 also requires you to be a resident of the US and if you leave for more than a certain period of time (I believe it’s a year) the Visa is revoked. Amazingly Canada currently does not know if these IIP people are currently living in Canada but they are in the process of implementing a system that will track everyone who enters and leaves the country. Again, ridiculous that this doesn’t exist and seriously how could this take more than a couple of hours to implement. Here Canada : if (Investor.Status == LeavingCountry) Investor.UpdateLocation(); Additionally, Canada is… Read more »
oneangryslav2
Guest
oneangryslav2

“The Canadian passport should be earned, not paid for.”

I’m not here to defend the IIP program (I think it was/is a scourge) but your comment just doesn’t withstand scrutiny. What did Stephen Harper do to earn his passport? What about Sidney Crosby?

would-be buyer
Guest
would-be buyer
Everyone, I think Alexander is speaking about the new immigrant investor Venture Capital program in that SCMP article: “Announcing stricter criteria for a new investor scheme to be launched later this year, Alexander told the South China Morning Post during an interview in Hong Kong that the required amount needed to qualify for the new immigrant investor venture capital pilot would be more than double that of the previous visa’s C$800,000 (HK$5.6 million).” We knew when the IIP was cancelled in February that it would be replaced by the new IIVCP. This is not new news or back-peddling by the minister. Am I wrong on reading this? The minister is making very broad changes to immigration policies to cut down on fraud and misuse. Consider some of these changes: 1) IIVCP will require that investor immigrants actually participate in business… Read more »
Brian Ripley
Guest
Brian Ripley
“why is Spain trying to get it’s housing prices up” said Crabman #4 My guess is that unemployment is very high in Spain and the middle class is occupied with repairing their balance sheets during the price deflation period. Banks want to clear their books of non performing loans and so government steps in with a subsidy (a visa) offered to people who want to own real estate. Detroit offers tax relief incentive plans: http://www.detroitmi.gov/Departments/PlanningDevelopmentDepartment/RealEstate/tabid/140/Default.aspx In Vancouver the blowoff top in SFD pricing occurred 2 years ago: http://www.chpc.biz/bull-horse-mountain.html … and the mojo to bid up strata prices evaporated then as well and this is all well before the announcement of the end of the immigration program. So perhaps prices were bid up to the spring 2012 peak before the market realized that the CA$ had changed trend in the fall… Read more »
registered
Member
registered

@11 oneangryslav2: “What did Stephen Harper do to earn his passport?”

We don’t give the government power to decide who of the native born retains citizenship for very good reason. We also give them power over who of the foreign born are granted citizenship for very good reasons under normal circumstances.

Skook
Member
Skook

Off current topic

I started a new VanPeak thread back on Mar 4th titled ‘Sunshine Coast Property: What do you think?’

Inspired by Observer’s excellent site ‘Vancouver Price Drop’ and the direction my posts were taking, I changed the thread title to ‘Sunshine Coast Price Drop: How low will they go?’ I have just added a new post and anyone following prices on the SC should find it very interesting.

http://vancouverpeak.com/attachment.php?aid=811

Skook
Member
Skook
registered
Member
registered
@12 would-be buyer: Of course he’s talking about the new program. What do you mean by ‘participate ‘ in point 1? In the article Alexander described it as a temporary contribution to a privately managed fund providing liquidity to start ups. That’s a very short term personal commitment to an IPVCP applicant in exchange for lifetime residence. No question there are some positive changes regarding proper record keeping, though the preceding clamp down in China can hardly be a coincidence. It was widely reported they weren’t happy about Canada enabling capital flight. We heard that same assurances after the Hong Kong immigration fraud revelations of the mid-Nineties so I’m not holding my breath. @9 Van Coffee: Here: http://www.scmp.com/news/china/article/1453230/chinese-welcome-canadas-new-investor-visa-stricter-rules-apply “Announcing stricter criteria for a new investor scheme to be launched later this year, Alexander told the South China Morning Post during… Read more »
M-
Member
While I wish the IIP had truly been scrapped (as well as the Quebec Nominee Program), I do see some improvements with the updated program: -Required investment is $1.6M, not $400/800K. -The previous applicants who thought they had an easy way in have been chucked off the waiting list. -The “investment” is no longer a GUARANTEED 0% loan to the government. -The $1.6M is in a pooled at-risk fund, so individual “investors” have little or no control over their investment. -The lack of individual control will prevent individual investors from gaming the system with sham investments. -Instead, it’s the fund managers that get to scam us. There will only be a few of them (not thousands of them), so perhaps they can be held to some level of accountability. -IIP investors won’t be able to borrow the “investment” funds from… Read more »
patriotz
Member
Active Member

@18:

The immigrant investor funds you’ve described match almost to a “T” the now discredited Labour Sponsored Venture Capital funds (LSVCC’s) with the difference being the latter gave the investor a 20% tax credit instead of a visa. The LSVCC’s have ranged from very poor performance compared to stock indexes to outright bankruptcy due to very high management fees and bad investment choices.

“Don’t let the tax tail wag the investment dog”, and it goes just as well with “immigration” rather than “tax”. There is no shortage at all of investment capital in Canada – that’s what high stock prices relative to earnings mean. When investment funds have a primary goal other than returns that means the managers have no incentive to minimize costs and make wise investments. It’s obvious, but governments never learn.

Son of Ponzi
Guest
Son of Ponzi

# 11
I meant should be earned by newcomers.

franko
Member
franko

Just a reminder. It’s just as easy to write to Chris Alexander as it is to post on this forum…Chris.Alexander@parl.gc.ca
and copy as many MPs as you can think of.
There is no better way to get the message out.

There is nothing wrong with immigration, but feds got it completely backwards by rewarding useless wealthy foreigners who are only interested in milking the system. They should instead be appealing to hard working refugees suffering from disasters and conflicts.

Any new version of the IIP should favour investments outside od RE flipping, unless they agree to settle in Yellowknife or Fort McMurray.

Unplugged
Guest
Unplugged

Do you find yourself thinking and spending in ways that mimic the banks and credit cards marketing jingles? Are you amongst the Walmart shoppers that spend like they’re rich while the rich are busy shopping like they’re poor? Figuring out what position in society your financial picture takes very little time but lots of common sense.. Unfortunately the majority of society suffers from a lack of the latter.

http://goo.gl/KKFdtA

Vanuser
Guest
Vanuser

I thought the government truly scrapped off the previous IIP for good. Unfortunately, a shame that Canada has this kind of government that does not know what is good or bad for the true Canadian residents.

oneangryslav2
Guest
oneangryslav2

“I meant should be earned by newcomers.”

Okay. That’s different, and thanks for the clarification.

It’s not just semantics either since it reminds those of us–especially the libertarian types–who were either born here (like Steve and Sid) or who were spirited across international borders as infants snuggled tightly in their mother’s embrace (like me) that, taken globally, what determines whether we’ll have a relatively comfortable life or one of uncompromising hardship is, for the vast majority of us, dependent upon something (citizenship) over which we have absolutely no control. Unless, of course, you can pre-determine out of whose womb you will crawl.

midnight toker
Guest
midnight toker

Here’s an interesting article about how this town is owned by the real estate industry

http://themainlander.com/2014/03/07/bob-rennies-25000-lunch-why-vancouver-is-unaffordable/

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