{"id":5904,"date":"2016-02-02T22:16:26","date_gmt":"2016-02-02T22:16:26","guid":{"rendered":"https:\/\/www.investmentimmigration.com\/?p=5904"},"modified":"2019-02-12T13:52:31","modified_gmt":"2019-02-12T18:52:31","slug":"chinese-investors-reject-australia-revamped-significant-investor-visa","status":"publish","type":"post","link":"https:\/\/www.investmentimmigration.com\/chinese-investors-reject-australia-revamped-significant-investor-visa\/","title":{"rendered":"Affluent Chinese Investors Reject Australia\u2019s Revamped Significant Investor Visa"},"content":{"rendered":"

Australia’s revamped Significant Investor Visa program that sought to discourage investment immigrants from investing in Australia\u2019s real estate sector has completely fallen out of favor among affluent immigrants. As opposed to 50 applications per month under the old rules, the revised SIV has received just 47 applications between July and December 2015.<\/p>\n

The biggest deterrent is the new requirement where investors must allocate 10% of the minimum investment of $5 million into venture capital funds and an additional 30% into listed small cap companies. The balance can be invested in corporate and other investments, although direct purchase of real estate is prohibited. Even investments in other types of property funds cannot exceed 10% of the balance requirement i.e. $3 million.<\/p>\n

Fund managers have now begun lobbying for relaxation of inflow of investment immigration funds into the residential real estate sector in the country. The government is being asked to introduce measures to prevent passive investments by affluent immigrants. It is being pointed out that cutting off large construction projects from SIV funding has affected the growth of the infrastructure sector in the country.<\/p>\n

The SIV rules were revamped to achieve the strategic goal of bringing in investment in fund-starved sectors with potential for rapid growth and significant contribution to the national economy. However, the fact that the slump has lasted for five-six months has led to concerns that demand from Chinese investors may not rebound anytime in the near future.<\/p>\n

Although fund managers support the idea of pushing investments into small cap companies and venture capital funds, they feel the government may have erred by removing residential real estate sector investments from the SIV program.<\/p>\n

With a recent Productivity Commission calling for the cancellation of investment immigration programs like SIV, the government has defended the existing policy and has indicated that it expects demand among affluent investors to revive over time.<\/p>\n

Authorities have highlighted that the SIV program does not bar investors from investing in commercial or industrial real estate. Applicants merely do not have the option of investing in residential properties\u2014directly or through managed funds\u2014and claiming the same as a qualifying investment under the program that offers Australian permanent residence in just four years.<\/p>\n

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