International travel and migration is not a thing of the past. The strategy of social distancing and self-isolating for 14 days is working in Australia. The Covid19 infection rate has fallen dramatically and the curve is flattening.
When this crisis passes, many businesses will benefit from the unprecedented fiscal stimulus and a population ready to engage in commercial and social activities in Australia and other countries.
Opportunities for investors
Any person interested in a ‘golden visa’ such as the 188 Investor Visa or Significant Investor Visa now has the greatest opportunity in years.
Your minimum required investment in a government bond is AUD$1.5M for the Investor Visa, utilising funds that you have previously invested and managed for several years in real estate, stocks, bonds, term deposits, gold, silver and so forth. For those unfamiliar with these government bonds, the State government pays you interest for your investment and at the end of 4 years gives you back your money.
It is AUD$5M for the Significant Investor visa. The AUD$5M you bring to Australia to make your complying investment for a 188 Significant Investor Visa can be from previous investments or an inheritance or gift from parents or grandparents.
The Australian Dollar fell to five year lows against most currencies
At the time of writing, the Australian Dollar (AUD) had fallen significantly against the US Dollar. Many currencies including the HK Dollar, the Chinese Yuan, Thai Baht, Malaysian Ringgit, Vietnamese Dong and the Singapore Dollar have appreciated against the AUD.
The AUD at these lows presents a discount, a good opportunity for investors to transfer their funds to Australia at favourable rates. Alternatively, it is time to think of locking in an exchange rate through a Forward Exchange Contract or just convert money by transferring funds to an AUD Term Deposit at your bank. Should you transfer your funds to a bank in Australia, the Term Deposit rates I have seen available today are between 0.85% to 1.70% p.a.
Australian stock market
The Australian stock market has fallen sharply as a result of the Covid19 pandemic.
China now appears to have contained the Covid19 virus and is on a path to restarting its huge economy. China’s recovery will eventually help power an Australian recovery. Australia exports beef, dairy products, health supplements, seafood, wine, coal, minerals and wool to China, just to name a few exports.
The selloff in the Australian stock market has produced a buying opportunity for Significant Investor Visa applicants who must invest AUD$5M. We do not know when the Australian stock market will bottom, however, history tells us that in all probability the crisis will be over in the near future.
This is a good opportunity for investors looking to diversify their investments in Australia. You could move your invested funds to Australia to continue your investment activities here.
Should you start an investor visa application now, it could take about 10 to 12 months, that is potentially 12 months of growth in your investment portfolio. You would be ready when invited by the Department of Home Affairs to make your designated investment, that is the final step in the process prior to granting you and your family your Australian 188 visas.
” The AUD$5M you bring to Australia to make your complying investment for a 188 Significant Investor Visa can be from previous investments or an inheritance or gift from parents or grandparents.