B.C. immigration goes negative but wealthy migrants flood in

[Lockout Casualty]

B.C. immigration goes negative but wealthy migrants flood in

A recent dramatic drop in immigration to B.C. from other countries – which plunged to negative numbers for the first time in 10 years – will not slow the rich flow of wealthy foreigners into Vancouver real estate, analysts say.

In the fourth quarter of 2014, immigration to B.C. was negative 3,145 people after a net increase of 18,753 in the previous quarter and an average of 34,000 annually for the past decade.

“It’s all about the temporary foreign workers (TFWs) leaving Canada,” said Richard Kurland, a Vancouver immigration lawyer.

But an exclusive study of national data shows that hundreds of wealthy foreigners are using a backdoor to B.C. without showing up on immigration numbers.

The Conservative government set April 1, 2015 as the deadline for the temporary low-skilled workers to leave the country after changing the rules in 2011. Formerly, TFWs had only to re-apply, but new rules require them to leave the country for at least four years before re-applying.

The exodus from B.C. has begun.

“There are also no new temporary workers coming in”, Kurland noted.

In all, 6,900 of these “non-permanent residents” left B.C. in the last three months of 2014 and even more will likely leave in the first and second quarters of this year, said the partner of Kurland, Tobe.

There are an estimated 70,000 TFWs in B.C., third highest among provinces.

A 90-day provincial moratorium on applications under B.C.’s revised Provincial Nominee Program, that began March 31, will also choke the flow of middle-class immigrants.

“We will see less new immigrants this year [because of the PNP pause]” said Queenie Choo, CEO of SUCCESS, a non-profit immigrant settlement agency in Vancouver.

NET IMMIGRATION TO B.C., 2014

First Quarter: 8,691

Second Quarter: 9,561

Third Quarter: 18,753

Fourth Quarter: -3,145

Source: BC Stats

But Kurland said any loss of lower-skilled workers from B.C. is taken up with the “trampolining” of rich immigrants from Quebec. It is easier for immigrant investors to qualify for Canadian citizenship through Quebec's Immigrant Investor Programme, which has become more widely used since the death of a similar federal program last year.

Quebec plans to bring in 5,000 investor immigrants this year, a record amount.

Such investors loan the Quebec government $800,000 interest-free for five years and in return receive permanent resident visas for their family. The immigrant investor states they will reside in Quebec, but nearly all promptly relocate to B.C.

Kurland’s office paid for study that tracked the addresses of 5,120 Quebec immigrant investors who had arrived from 2000 to 2008. The study found that, within months of landing in Quebec, 91% of them had a B.C. address and most were living in the Vancouver area.

“That is literally 2,000 wealthy immigrants a year moving in –150 a month – who are not counted in B.C. immigration numbers,” Kurland said. “Can you imagine what 2,000 millionaires means to the high-end property market in Vancouver, as buyers?”

The scale of the influx is rich by any measure.

From 2005 to 2012, about 45,000 millionaire migrants arrived in Vancouver through the federal and Quebec immigrant investor schemes. To put this in perspective, the entire United States accepted less than 9,500 wealthy immigrants in the same period under its EB-5 immigrant investor program, representing less than 30,000 people.

https://www.biv.com/article/2015/6/bc-immigration-goes-negative-wealthy-migrants-floo/

So young people are leaving because they can't afford to start a family or buy a home, Quebec government gets interest free cash for five years while unloading its investors' families on BC, and rich migrants get to park their money and are pricing everyone out of the city. So much so, businesses have not only trouble of finding local talent due to it moving away, but also bringing in talent from elsewhere. Who is benefiting from this again? That same link also mentions that Vancouver has the lowest median income of any major city in Canada. No wonder people are leaving.

On related note, came across this tidbit as I was doing more reading:

Why is a Richmond B.C. neighbourhood with many expensive mansions also one of the city’s ‘poorest’?

Why does a Richmond neighbourhood with many expensive mansions also appear to be one of the city’s poorest?

The upscale neighbourhood of Thompson, where properties typically sell in the $1-million to $3-million range, ranks high for poverty, according to Statistics Canada figures.

But former Richmond Mayor Greg Halsey-Brandt said the predominantly single-family Thompson neighbourhood has “the most expensive homes and the second highest level of household poverty” in Richmond because many residents under-report their global incomes to Canadian tax officials.

More than six out of 10 Richmond residents were born outside the country, the highest rate of any city in the country. If many people who live in luxury Richmond houses are reporting low incomes to Revenue Canada, Halsey-Brandt is among those worried it means many are not paying their fair share of taxes for social services.

The former mayor said it’s revealing that the roughly 16,000 residents of Thompson, most of whom live in single-family homes, are second only to those who live in the downtown core of Richmond for reporting poverty-level incomes. Richmond’s downtown consists mostly of small condos and rental units.

“Those of us who live here know that this is nonsense. Since many of the families live in over $1-million homes. It is simply under-reporting of income that causes the problem.”

Overall across Richmond, 22.4 per cent of the population is listed as low income.

But the proportion of near-poverty-level households rises to 26.2 per cent in Thompson, which is in the northwest corner of Richmond, across the Fraser River’s Middle Arm from Vancouver International Airport.

Halsey-Brandt points out households in the less-luxurious neighbourhood of Steveston, which has the fewest immigrants in Richmond, report the smallest portion of low-income households, at 11.4 per cent.

Albert Lo, head of the Canadian Race Relations Foundation, is concerned residents with expensive assets in Canada, particularly houses, are earning most of their money outside the country and not reporting it to the B.C. and Canadian governments.

The Canadian Race Relations Foundation, which operates on a $24-million endowment from the federal government and ethnic groups, is urging the Canada Revenue Agency to more closely examine the earnings of immigrants who “park large amounts of money” in Canadian real estate and then “go back to work in China” or elsewhere, said Lo, a longtime Richmond resident and Realtor.

Jiun-Hsien Henry Yao, who ran for Richmond city council in 2014, is also troubled by the income-reporting problem. Normally, he said, “you would need a family income of $150,000 to $200,000 just to feel you can afford any home in Richmond.” But in high-end Thompson, most households report income well under $100,000.

Both Halsey-Brandt and Lo said even though the problem of low reported incomes seems most exaggerated in Thompson, it is also occurring in other parts of Richmond.

“Statistics Canada continues to show (the entire city of) Richmond as one of the poorest cities in British Columbia, with a very high child poverty rate,” says Halsey-Brandt, who also represented Richmond as a B.C. Liberal cabinet minister.

This is a “serious financial issue,” Halsey-Brandt said, “because of the demands placed on our health care and education systems by newcomers.”

Although people who live in expensive houses pay property taxes, Halsey-Brandt said, many appear to not be paying an appropriate share of provincial and federal income taxes, which fund highways, transit, universities, hospitals and much more.

The Metro Vancouver Housing Data Book says Richmond, on average, has the third highest prices for single-family dwellings of any municipality, behind only Vancouver and West Vancouver.

But that appears to contradict the reported poverty levels in Richmond, particularly among immigrant households.

The Housing Data Book says that, statistically, Richmond has the highest proportion of households maintained by immigrants who are, based on their reported incomes, judged to be in “extremely dire housing” situations.

Across Metro Vancouver, the Housing Data Book reports 51 per cent of the households that report spending at least half of their incomes on shelter, which is the definition of “extremely dire,” are maintained by immigrants. In Richmond, that figure jumps to 71 per cent.

Lo said the issue of low reported incomes relates in part to Richmond’s large number of so-called astronaut parents.

“If a family moves here, but the head of the family goes back to China or East Asia to make money, that means Richmond often ends up with the spouse and children. That family is not going to declare earning much money in Canada,” said Lo.

A federal government analysis recently showed that immigrants to Canada from China, as well as Taiwan and Korea, are most likely to declare the lowest incomes in Canada.

The 2014 analysis found recent immigrants from these countries are also more likely to be business-class investors who own significant unreported assets and might be “strategic” in telling government about their incomes.

University of B.C. geography professor David Ley, author of Millionaire Migrants, said the problem of under-reporting of incomes is one of the key reasons the federal government drastically cut back the immigrant-investor program in 2014.

Richmond’s Thompson neighbourhood is bordered by Granville Street, No. 2 Road, the Fraser River and Georgia Strait. Significant parts were developed by Milan Ilich on the site of Terra Nova farmland, which was controversially removed from the Agricultural Land Reserve in the late 1980s. More than six out of 10 residents of Thompson have an immigrant language, most commonly Chinese, as their mother tongue, according to the 2011 Statistics Canada General Household Survey.

Based on ethnicity maps created by The Vancouver Sun’s Chad Skelton, the portion of Thompson’s population that is ethnic Chinese has roughly doubled, to 70 per cent of all residents, since 1996.

David Yau, 69, interviewed in a mini-mall in the Thompson neighbourhood, said he believes many ethnic Chinese who have addresses in the neighbourhood have “big houses in Canada, but they make their money in the U.S.A. or Asia.”

Richmond Councillor Alexa Loo, an accountant, said the phenomenon of residents reporting surprisingly low incomes to tax officials reflects the “weird economy” developing in Richmond.

Many wealthy trans-national Chinese and other migrants maintain expensive, near-empty homes in Richmond, as well as elsewhere around the world, Loo said. “There’s a lot of $2 million homes,” she said, “and it doesn’t seem the people who might own them have jobs” in Metro Vancouver.

http://www.nationalpost.com/m/wp/news/blog.html?b=news.nationalpost.com/news/canada/why-is-richmond-neighbourhood-with-many-expensive-mansions-also-one-of-the-citys-poorest

So not only do we allow nearly 5 times more millionaires into our city of 2.5 million than the entire US of A does into its country of 333 million, they don`t even contribute beyond paying property and sales tax. The overt nature of this makes that much worse. It`s like those green lawns in Vancouver during a drought. Everyone can see it, but nobody is doing a damn thing about it.

[canucklehead44]

Our government is such a joke. Citizens and permanent residents who live, work, and contribute to the community are being priced out for rich immigrants who buy up our limited land, contribute little to our society, and cheat taxes. Is this really a hard problem to solve?

Unfortunately, because those in government are older and bought real estate long ago they just love seeing their net worth skyrocket. What motivation do they have to stop it?

[ILL BILL NECRO]

Our government is such a joke. Citizens and permanent residents who live, work, and contribute to the community are being priced out for rich immigrants who buy up our limited land, contribute little to our society, and cheat taxes. Is this really a hard problem to solve?

Unfortunately, because those in government are older and bought real estate long ago they just love seeing their net worth skyrocket. What motivation do they have to stop it?

I 100% agree.

[Standing_Tall#37]

Our government is such a joke. Citizens and permanent residents who live, work, and contribute to the community are being priced out for rich immigrants who buy up our limited land, contribute little to our society, and cheat taxes. Is this really a hard problem to solve?

Unfortunately, because those in government are older and bought real estate long ago they just love seeing their net worth skyrocket. What motivation do they have to stop it?

If y'all moved to the okanagan, Fraser valley and kootneys, it would drive demand down and real estate prices too, maybe that would drive them to do something.

[stexx]

We just sold our grandparents home in Vancouver, we sold it in june for 1.25million sale goes through september 1, since then it has been leveraged 3 times for profit. But you know there is no problem in Vancouver at all.

[ILL BILL NECRO]

If y'all moved to the okanagan, Fraser valley and kootneys, it would drive demand down and real estate prices too, maybe that would drive them to do something.

They do that all the time... Everything is crazy overpriced in b.c because what happens in Van has a trickle down effect on the rest of the province.... Who says y'all anyway? You American?...

also I live in the Okanagan. Kinda strange story but I just was at the Notary today signing papers on a 320k house. I'ts just a decent house built in 74 nothing new or fancy. First time home buyer with no help from family at all. Things are not easy...

[Jaimito]

Meanwhile the US political debate is about Mexicans stealing their jobs, criminals and rapists.

[TOMapleLaughs]

I assume they're still paying insane property tax? Or not?

[Ghostsof1915]

Because Canada is a nanny raising rich peoples kids on government expense. They buy a place. Get their kids in school. Mommy or Daddy (sometimes both) fly in and out of Canada to make thier money overseas. Their kids get a free education, access to medical care. And outside of property tax or maybe taxes on buying a BMW, or Mercedes, they don't help our economy, or contribute to our society.

Halsey Brandt is also a hypocrite, because in his tenure as mayor he was pro development, making Richmond a nightmare for traffic.

Canada clearly needs to make conditions to people who immigrate here. It should be not about what money you bring in, it should be based on your skills. Engineers, Doctors, technicians, the type of people who will create industry and jobs here.

And in your first 5 years of getting citizenship you cannot be outside of Canada for more than 6 weeks, and you should be required to prove it by your passport(s). China, Hong Kong and other countries have very strict rules for immigration. It's about time we did the same.

[taxi]

I assume they're still paying insane property tax? Or not?

Since when were they doing that? Our property taxes are peanuts to someone who pays cash for a million dollar home.

[TOMapleLaughs]

There is no way the 5,000 investment immigrants from Quebec are all legit. Why do you think they're coming from Quebec? It's because they're rules are more lax. So it looks like our low-income workers are still coming to BC, just through Quebec. So actual BC immigration numbers, including low-income, were still positive. So don't worry people, we're still bringing in our slaves. People we absolutely need here, but will still be complaining about because they're takin' our jerbs!

Still, there's no denying that real estate is inflated here. Duh. But I think this happens regardless of immigration. There will be buyers here because of the desirable location.

[Electro Rock]

Quebec loves soaking up immigrant entry fees knowing that so many of them are bound to move to another part of the country as soon as possible anyway.

Another example of how Quebec is a liability to the rest of the country.

[taxi]

There is no way the 5,000 investment immigrants from Quebec are all legit. Why do you think they're coming from Quebec? It's because they're rules are more lax. So it looks like our low-income workers are still coming to BC, just through Quebec. So actual BC immigration numbers, including low-income, were still positive. So don't worry people, we're still bringing in our slaves. People we absolutely need here, but will still be complaining about because they're takin' our jerbs!

Still, there's no denying that real estate is inflated here. Duh. But I think this happens regardless of immigration. There will be buyers here because of the desirable location.

Why is there no way they're c legit. Millionaires are lining up to get into Canada. Also how do you fake giving the Quebec government $800,000?

[Lucky Day]

Immigration is getting out of control, Greater Vancouver is surely becoming just for the rich, it has changed so much.

When are they going to slow it down.

[Lancaster]

Maybe just a lot of people from Vancouver realizes that Vancouver isn't really that great. Sure, the mountains are nice, there's the seawall, and clean air.... but that does not mean a crummy home in a normal East Van neighbourhood should be a million plus, or the bachelor suite in downtown be $1000+/month in rent.

I bleed Blue and Green, but even I am thinking of moving overseas (Japan). I mean, sure I'll miss my family/friends, the convenience of being able to just quickly walk my dog at Trout Lake, being able to run 1am along the seawall at Stanley Park.... but when property prices are double as Osaka.... an area of 10 million+ people.... something is way outta whack. I mean, I get rent a 3BR place in a quiet neighbourhood (Bentencho for those who have been to the city)..... with 3 supermarkets, 3 separate subway lines, a police station, post office, more than a dozen 24/7 convenience stores, 3 karaoke places, 2 bike shops, plus who knows how many bars, restaurants and other establishments within a 5-15 minute walk.... all for about $900 Canadian.... I'm surprised more people aren't flocking out of the GVRD.

Maybe we all need to realize that we really don't live in "The Best Place on Earth".

[-DLC-]

There is no way the 5,000 investment immigrants from Quebec are all legit. Why do you think they're coming from Quebec? It's because they're rules are more lax. So it looks like our low-income workers are still coming to BC, just through Quebec. So actual BC immigration numbers, including low-income, were still positive. So don't worry people, we're still bringing in our slaves. People we absolutely need here, but will still be complaining about because they're takin' our jerbs!

Still, there's no denying that real estate is inflated here. Duh. But I think this happens regardless of immigration. There will be buyers here because of the desirable location.

In Richmond, it's nothing to do with "desirable location" and more to do with "because we can". It's a lot of people investing in property, not necessarily living in it. Some are using houses as hotels and they're being advertised as such overseas...so they're making a buck at the expense of others.

If it was simply a matter of people wanting to live in a desirable location, they would. But so many homes are not lived in by those purchasing them...and they just knocked down a house that was less than 10 years old to build a bigger house on the lot. That's unnecessary if people just want to "live" here...move in. But many don't. They're using this place in a greed based motive that has the average family that does intend to make their home here suffering as a result.

It's all about money.