What 1 million New Canadians Mean to Your Investing

The recent Statistics Canada report that over 1 Million new Canadians arrived in 2022 will have a significant impact on your investments. Here are the changes coming because of this influx. Are you ready?

1. Government failure. In most cases new arrivals are not required to live in any specific part of our country. As an investor you need to look at where they are likely to live. Government failure in managing the influx is key here. Lower housing costs and opportunities for their families will be key. Here are the cheapest places to live in Canada. Yes, you can still buy a house for $169,000 in Canada. The government failure means you as an investor can predict based on market conditions where the demand will be.

 2. Online training and certification programs. Companies that focus on helping with second language and re-certifying healthcare workers and other professions will be in demand.

 3. Creative financing. It is very difficult for new arrivals to get financing to buy a house or invest. Companies that provide financing as part of the sale of real estate will thrive. One of my companies is doing a trial of sorts with a tiny home for $159,000 including a 1.5-acre lot where we provide 80% of the financing for 5 years at 5%. I’ll let you know if there was any demand for this type of product. Other second tier lenders and private financing groups will also thrive if they see the need and develop new products for this population.

 4. Immigration lawyers. We will need many to sort through the applications.

 5. Specialty food shops. You never forget the foods of your country. Finding ways to bridge that gap through catering and other theme offerings will be popular.

 6. Higher Taxes. Someone must pay for all of this. You will need a great Accountant to help you legally look at ways to minimize your income taxes. You will also need to seek out lower property tax jurisdictions for your real estate investments. Property taxes are set to rise all over the country as towns and cities cope with the need to provide more government services.

7. Rental Housing. There aren’t many great opportunities right now in the Canadian REIT sector as in my opinion, they are over-priced. Buying a value duplex still makes the most sense if you are wanting to get started in housing rentals. I would never invest in Ontario however due to the restrictive property taxes and tenant favorable climate.

We all welcome new Canadians to our country because at some point in our own family history we were new arrivals. The key is to understand the needs created by this influx and invest in solutions that are in demand.

Listen to my free podcast, Invest Like a Honeybee, wherever you get your podcasts.