3 Major Miami Impacts from the New EB-5 Changes
By now, you’ve probably heard that the most popular green card program known as the EB-5 Visa is getting a major facelift. For decades, this visa has allowed wealthy foreign investors to inject cash into the U.S. economy in exchange for a 2-year conditional Green Card. The recent changes increase the amount of the investment and where that money can be invested. Specifically, the investment requirement nearly doubled from $500,000 to a whopping $900,000. Because a lot of our clients are international investors, we’d thought we’d shed some light of how these changes will impact the Magic City.
- Less Cash Flowing in to Miami’s Real Estate Market
It’s no surprise that Miami’s international population has impacted the real estate market at every level: from the luxury high rise towers in Downtown, to single family homes in Doral, to designer shops in Brickell. Our city sees lots of cash investments coming from Central and South America. Now with the increase of costs for the EB-5 program, Miami may be seeing less foreign investors picking up the tab for these fancy new real estate developments.
- Only the Ultra-Wealthy Can Invest in Miami
While some believe the increased price tag of the EB-5 program is a way to keep up with inflation, others see it as a way to limit international investment in the U.S. and by who. Apparently, the changes send a message that we don’t want money from foreign investors who are just well off; no, no, we only want investments from the super wealthy. Those who are not willing to invest the extra $400,000 under the new EB-5 rules will most likely decide to invest in other counties instead of in the U.S.
- Wanted: More Jobs in Miami
A condition to the EB-5 visa is job creation. Each EB-5 investor is required to create at least 10 full-time jobs in areas with high unemployment. Now that the EB-5 is being sold at a higher price point, it is likely have a negative impact on the national job market as a whole. But areas like Miami that particularly depend on international investors to hire U.S. workers will most likely feel a particular strain on the job market.
The good news is that these changes won’t take effect until November 21, 2019. So investors who can kick it in to high gear and apply before then can obtain their Green Card and save $400,000. Those investors not ready or not willing to pay the extra costs, may have other alternatives to obtaining a Green Card. Explore other paths that lead to a Green Card by talking to an immigration and business expert today.