Investor 2 category changes cause dramatic drop in applicants
What is Investor 2 visa category ?
The Investor 2 visa category is a visa based on an applicant willing to invest substantial amounts of money into the New Zealand economy.
Previously under the investor 2 program, points were awarded for business experience, level of funds being invested and age. It was a demand driven system with only 300 approvals per year. The type of investments that were acceptable were wide and all had the same standing.
Demand for this visa type meant the minimum investment amount was increased By IMNZ from the legal minimum of $1.5 million to $2.75 million. The previous policy yielded substantial foreign investment in New Zealand.
Demand for residence using this method was substantial and the category began to become oversubscribed.
Previously we predicted that the changes to the investor 2 category may have an adverse effect on “the market”. The previous iteration of the policy was the most successful we have seen in our 20 years of experience.
Investor 2 Visa | NZ immigration Law changes 2017
In May 2017 this popular and successful migration program was dramatically altered. All applicants now have to invest a minimum of $3 million, but greater credit is given to investments outside Government Bonds. Bonds were under the old system the most preferred form of investment because of its safety.
In an effort to drive more value out of investor category applicants, the Government is giving more points if an investor category applicant places a portion of their funds into higher risk investments.
Investing in higher risk areas also provides the ability for the investor applicant to reduce the level of time they must spend in New Zealand during the investment period.
The first under the new rules took place on 1 June. It was advertised that the top 25 scoring applicants would be invited to apply for residence. However no one expressed an interest in applying for residence by this category. No draw took place.
The 2nd draw on 15 June also stated the top 25 scoring applicants would be invited to submit a residence application. Only 5 people expressed an interest in applying this way.
The next selection will take place on 29 June. At the time of writing there are only 2 people expressing an interest in applying for residence by this method.
That does not bode well.
Did the Government get too greedy?
Or did somebody in Wellington forget the old adage: if it ain’t broke don’t try and fix it…