Immigration is a topic that’s always been widely debated but probably not very well understood.
Whether you have a property portfolio or not, or whether you’re thinking about entering the market now or just getting started, immigration will play a pivotal part in your long term results.
As property and economic data demonstrates, we can comfortably see that immigration plays a rather important role in ensuring the continued healthy growth of our economy as well as our property market.
Without immigrants our population would grow only very slowly, impacting the overall strength of our economy. However, when you have rapid increases in population, you also have a rapid increase in demand which is then going to ensure that we have better long term capital growth performance. So, if and when you do enter the property market, you’re going to get long term benefits out of this.
We have long predicted that the Australian government will use immigration to help boost our economy following the end of the global pandemic. This means that once borders reopen, you could expect to see another explosion in property prices.
Historically this has always been the case. Whenever we have a major economic shock; for example, the Spanish Flu – after the borders reopened we had an influx of immigrants.
In the wake of the 2008 Global Financial Crisis, the Australian government increased the immigration quota which resulted in more than 400,000 new residents arriving in the country. This, as we know, led to one of the most profitable periods in the Australian property market, topped only by the recent 32-year record surge in house prices.
The Australian Treasury has already indicated that they intend to commence the gradual return of temporary and permanent residents as early as mid-2022.
As you can see immigration is an effective policy in terms of helping the economy recover really fast and I have no question they will do something very similar again this time around. When they do, that is going to give our economy, and consequently the property market, another huge boost.
My co-Founder, Scott Kuru, and I host a regular free online Masterclass where we discuss our predictions for the property market as well as how you can pay off your home in 10 years or less. We’ve spent the last decade accurately pin-pointing areas that every investor should be looking for to achieve substantial growth and returns, helping thousands on their journey toward financial freedom.
Lianna Pan is one of only 2,997 qualified Actuaries in Australia and is Founder & Director of Research at Freedom Property Investors.