The complying investments for a significant investor visa are made up of at least 500,000 Australian dollars in venture capital and growth private equity funds, at least 1.5 million Australian dollars in approved managed funds investing in emerging companies, and a "balancing investment" of 3 million Australian dollars into managed funds, which may include annuities, Australian-listed securities, eligible corporate bonds or notes, and real property. However, the investment in real property is subject to a 10 percent limit on residential real estate. It is advisable to consult a fund manager who is a financial adviser with a thorough understanding of the investment framework required for an SIV.
How can investors use their investment in real estate to participate in the SIV program?
I am an experienced hotel developer that is looking at potential hotel developments in Perth and Melbourne. I would invest more than 5 million Australian dollars of my own funds in these projects. How can I make this qualify for the SIV program or any other Australian residency program?
In order to apply for a significant investor visa, the client will need to make a complying significant investment of at least AUD 5 million over four years in the following proportions: at least AUD 500,000 in venture capital and growth private equity funds which invest in startups and small private companies; at least AUD 1.5 million in approved managed funds investing in emerging companies listed on the Australian Stock Exchange; a "balancing investment" of at least AUD 3 million in managed funds that may invest in a range of assets, including ASX-listed companies, Australian corporate bonds or notes, annuities and commercial real estate. Direct investment in residential real estate continues to be prohibited and indirect investment in residential property through managed funds is now strictly limited. Investments must not be used as security or collateral for a loan. Pertaining to your circumstances, you may also wish to consider other options under the 188 visa program, such as: business innovation stream, for people with business skills who want to establish, develop and manage a new or existing business in Australia (applicants must be nominated by a state or territory government); investor stream, which is for people who want to make a designated investment of at least AUD 1.5 million in an Australian state or territory and maintain business and investment activity in Australia (applicants must be nominated by a state or territory government, or possibly a business talent visa, subclass 132).
Australia has tight controls against foreign real estate investments under the SIV. Using real estate investments for migration purposes may be heavily frowned upon. All in all, you will need a skilled professional in framing legal arguments and transactions to support your visa application so you can commence your business in Perth.