Rental returns increasing due to credit availability and casualisation of workforce?

[Mooze]

Increasingly in regional areas we're seeing a casualisation of the workforce - not necessarily part time or casual hours (although there's plenty of underemployment) but often work (even govt at any level) is via contract of 1 -2 years. I'm not as familiar with what is occurring in metro areas (anyone? I do know Canberra went heavily into contracting in the past ten years), but with this happening in conjunction with restricted credit growth (those that were marginally approved for a loan previously would now fall outside the parameters and be declined) surely the number of renters would be being driven up, increasing returns as people are restricted to renting for longer rather than purchasing.

It maybe a lack of coffee this morning - but just wanted to put the above theory out there and find out if it's just my region or wider spread and what others thoughts on it are.

 

[Terry_w]

Yes, that is happening across Australia. And it could mean it is harder to get finance, but a lot of lenders are lending to casuals. The lending restrictions on casuals are slowly easing.

 

[Rolf Latham]

Casual or contract isnt really a problem per se unless you have no real history per se.

At least one lender will do a 97 % lvr with a min 90 day casual stint, that is deemed to be ongoing.

Rather than a lender credit issue per se, I see the reluctance of such borrowers wanting buy as a good thing in many cases.

ta
rolf