significant glut in real estate sales in Turkey. The market,
especially in affluent areas such as Istanbul, Ankara and
Izmir, has been a buyer’s market. In the short run, when the
currency value drops this much, it reduces the buying power
of the prospective purchaser of the real estate. Therefore,
the value of the real estate falls even in lira terms. To make
things worse, the actual sale value of long-held properties
and their official records do not always match and therefore
creates a source of funds challenge for Turkish investors.
6
AFFORDABILITY VS.
INCENTIVE TO IMMIGRATE
As far as “affordability” is concerned, there is no question
that a considerable section of the population has been
affected adversely. The fixed income professional, the real
estate owner, and the middle to upper-middle class citizen
with lira-denominated savings in the bank, are all now less
wealthy. Therefore, the EB-5 investment is less affordable
for them. That said, the typical Turkish EB-5 investor’s
net worth in dollar has been $3 to 10 million. Even if that
number is now half, they could still afford the visa albeit at
a much higher percentage of their personal net worth.
While affordability plays a significant role, the primary
driver for immigration is the incentive to immigrate. Turkey
is no exception in this regard.
Push-factors include: Foreign currency control fears,
fear of further devaluations resulting in increased loss of
buying power, perceived political instability and potential
dissatisfaction of the ruling regime.
Pull fac tors include: Be t te r e duc ation oppor tuni t y
at affordable levels with potential to receive tuition
discounts through establishing residency in a state, better
job placement opportunity from compensation and level
of expertise to be gained perspective, better standard of
living, practical training to gain work experience to get a
better level of employment back in the home country after
a few years, and amortization of top college expenses
currently running at around $300,000 per child.
Turkish investors are of ten ver y patriotic. It is not
uncommon for investors to go back and visit or continue
to do business in their forme r home countr y. T his
motive is important as it highlights the main reason of
immigration to be “seeking a better opportunity” rather
than “desperation.” They do not come to the United States
as political refugees or asylum seekers. As such, they are
more affluent and their financial net worth is immune to
currency fluctuations and devaluations.
7
Independent of currency fluctuations, the behavior of the
Turkish EB-5 investor or investors from any other country
for that matter is affected by the following additional
factors:
• The uncertainty of the fate of the EB-5 program.
Investors are quite nervous since they do not know
if the program will be renewed passed the current
extension, now December 7, 2018 as part of the
Continuing Resolution.
• Many investors are nervous that they might not be
grandfathered from further increased minimum
investment requirements.
• Increased awareness of alternative visas to EB-5
even though they do not result in permanent
residency and eventually US citizenship.
• T h e d u r a t i o n i t t a ke s to g e t t h e p e r m a n e n t
residency status following I-526 approval through
the I-829 adjudication etc. pushes investors to
inves tigate other popular global programs in
Europe, Caribbean and other continents.
• The dif ficult y paused through the scrutiny of
source of funds process when compared with
other programs.
• Ta xation of worldwide inc o me as a resul t of
obtaining US permanent residency status.
EB5INVESTORS.COM
95