With migration forecast at 180,000 per annum, the population in 2056 is expected to reach 35 million. Get ready for a housing bonanza!

Move over! Australian cities are destined for massive increases in population in our lifetime. ABS projections based on the ‘medium’ migration assumption of 180,000 per year would see cities like Sydney and Melbourne having to grow to accommodate 7 million people each. How is this possible, when both cities are congested as it is? It’s food for thought. Will you join the stampede to coastal regional areas to avoid living in the “big smoke”?

Where will everyone live? Over 4 million new homes will be needed if we assume three people per family, per home. 60,000 new homes a year will be required simply to house the immigrants, while our housing backlog of 200,000 is increasing by 30,000 a year.

If ever there was an investor’s dream, investment property in Australia has to be it! The writing is on the pre-fabricated wall, as the country simply has no other option to maintain economic growth other than to continue the migration policy so that we have the required numbers and skills to develop further.

Naturally, when migrants arrive, they need jobs and accommodation. Most will initially be renters, adding to the pressure on availability and rental prices that has led to bidding auctions and vacancy rates of between 1 and 2 per cent. Bear in mind that these vacancy rates are actually more like zero per cent, because at any one time properties will be empty for reasons of sale, renovation, or simply awaiting tenants to move in.

One can only speculate that property prices will be forced upwards as demand outstrips supply. Owning property will become increasingly difficult for the current population and even more so for new arrivals. As is the case in many countries around the world, property ownership will become a privilege, particularly in our capital cities.

In the context of this massive influx of people, and the provision of accommodation to house them, investment property is set to deliver tremendous long-term returns in both rentals and capital growth.

If worrying about finding tenants has been holding you back from investing in property, get over it! The implication for future demand for rental accommodation is clearly spelt out in these population forecasts. There is a clear picture of open-ended demand for accommodation. One of the keys for a successful entrepreneur is finding a hole in the marketplace and then filling it. Why don’t you become one of the entrepreneurs who will fills this hole? Why not you and why not now?

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