Immigration is back in the headlines, and, again, the country is divided. Some say it’s straining housing, healthcare, and infrastructure, while others argue it’s fuelling growth and prosperity. Whether you like it or not, immigration isn’t going anywhere.
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For investors, that leaves only two choices: push back against the change and risk being left behind or lean into it and turn it into an opportunity. If you’re in the camp that wants to seize the upside of Australia’s immigration boom, here are the key ways you can position your portfolio to profit:
1) Housing and property
More people mean more demand for shelter, rents will keep climbing until construction catches up, and that’s years away. That puts REITs like Stockland (ASX:SGP) and Mirvac Group (ASX:MGR) in the box seat. By holding them, you’re tapping into rising rental yields and the long-term appreciation of scarce property.
2) Banks
Population growth is oxygen for the banks. Commonwealth Bank (ASX:CBA) and Westpac (ASX:WBC) stand to gain from more mortgages, savings accounts, and personal loans. Owning bank stocks exposes you to rising credit demand and dividend flows that tend to fatten in boom cycles.
3) Staples
Every new migrant must eat. That makes Coles (ASX:COL) and Woolworths (ASX:WOW) defensive winners. Their earnings grow almost automatically as shopping baskets multiply. For an investor, that means stable growth stocks that act as a hedge when markets wobble.
4) Retail and Discretionary
When new households are set up, they buy furniture, electronics, and appliances. That explains why Harvey Norman (ASX:HVN) is already hitting record highs. Adding a discretionary retailer to your portfolio can capture the demand from household formation.
However, here’s the twist. Immigration doesn’t just lift prices; it can also create deflationary benefits. More tradespeople entering the workforce reduces service costs, while supermarkets with bigger volumes can negotiate better supplier deals. That boosts margins, and higher margins often mean stronger share price momentum for investors.
The bottom line is this: Immigration isn’t a problem or a solution, it’s a permanent reality, and the smart money isn’t stuck in the debate. It’s quietly adjusting portfolios and loading up on the companies set to benefit from this wave.
For now, good luck and good trading.
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Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au.
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