Population Crisis Part 2: The Good News

Hopefully you read Part One of this article where I discuss the Canadian government’s delusional (and incredibly damaging) immigration strategy. With no meaningful plan to absorb 500,000 newcomers per year, we’re looking down the barrel of a number of crises to come: a jobs crisis, a healthcare crisis, an infrastructure crisis, and of course, a housing crisis.

Housing supply is already in a dire state. Exponential population growth is only going to make matters much, much worse. Trust me, I get it. It’s easy to look at the problem and feel completely helpless. My take? This doesn’t have to be a problem for you at all. In fact, it can be a great opportunity.

How To Turn Bad News Into Good News

You’re probably thinking to yourself, how is it possible that any “good” news could come out of a disaster like the one we’re in? If you play your cards right, there’s definitely a way to swing things in your favour. It all starts by getting in the market if you’re not in already. 

That’s right. Buy a home. There might never be a better time to do it again – at least not for the foreseeable future. If things are tight financially, buy a home where you can rent out part of it to help pay for the mortgage and any monthly expenses. People have been doing it forever. My  parents did it back in the late 60s and early 70s with zero formal education. All they had was a strong work ethic, which they thankfully passed down to me. Then I did the same thing in the 90s. It’s not sexy – but it’ll get your foot in the door. Demand for rentals is high right now, and you might even find yourself making some pretty good money.

Another thing you can do to make it work: put in some good old fashioned elbow grease. Yup. Owning a home will take some of your personal time, money, and effort. You may have to do some repairs yourself, or learn to fix things you’ve never had to fix before. You can do it. We all can. Start by getting friends or good referrals to skilled trades. Then watch and learn.  Maintaining a home isn’t rocket science.  It just takes time and effort.  If that’s what it takes then that’s what it takes. Just do it. If you’re willing to learn and you work hard, it will no doubt pay off.

Social Housing Is Never a Solution

Don’t get sucked in by politicians promising low cost social rental housing programs. These programs never end well, and there’s data to prove it. Disrepair, crime, and generational poverty always follow. Show me a social housing project that hasn’t ended up this way. I’ve yet to find one. Sorry folks, hate to break it to you but the government isn’t going to take care of you. Only YOU can take care of YOU!

The Bottom Line

Do whatever you have to do to get in before it’s too late. Get a second job. Do a DIY reno. Rent out your basement. Whatever. You don’t want to be in a situation down the road where you get evicted and you find yourself in a housing market where rents and asking prices are double what they are today. And trust me, with our population swelling like it is, it’s an inevitability.

Things might be hard at first, but they’ll get easier over time. You might find yourself in a better position sooner than you think. Typically, it takes the average first time homebuyer around four years for their home to appreciate enough and for the mortgage to decrease enough where they are in a position to buy up. Or keep that home, rent it out fully, and buy another. That’s right. It’s fully possible to buy another if you know what you’re doing.

But that’s in the long term. In the short term, you have to take the plunge ASAP. It’s a sure bet that will no doubt pay off if you’re patient. If you don’t know where to start, speak to a mortgage professional who can help you map out how to make it work. Trust me, you’ll thank yourself for it later.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis: 416-224-0114; steve@canadamortgagenews.ca