More than half the properties in Australia are cheaper to buy than rent.

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With extremely low interest rates driving the property industry we are seeing the result that it is cheaper to buy a home than to rent one.

The REA latest Insights-Buy/Rent-Report shows conditions are perfect for buyer’s despite of the increasing property prices.

The REA report which is based on current prices and a 10-year analysis of all the costs associated with buying and renting concludes that it’s cheaper to buy than rent 56.8% of dwellings in Australia.

REA’s economist Paul Ryan said, “low mortgage interest rates mean many Australians can actually save money by buying rather than renting a property”.

“Interest rates can currently be fixed below 2% per year and the Reserve Bank of Australia has committed to maintaining low interest rates until at least 2024, the certainty that mortgage costs are not going to increase rapidly provides comfort to buyers borrowing larger amounts” - Mr Ryan said.

The REA analysis also shows 51.2% of houses in Australia will be cheaper to buy than rent over the next decade, the average period homeowners hold on to their properties.

The results are even higher for units, with 72.7% cheaper to purchase over the same time period.

The REA analysis compares the total costs of renting and buying, accounting a combination of mortgage repayments, stamp duty, selling costs and ongoing costs such as maintenance and strata or council rates.

The only hiccup for many Buyers with this analysis, is that it assumes buyers already have access to a 20% deposit, which Mr Ryan said remains the biggest hurdle for many would-be buyers.

Mr Ryan said the report findings suggest property price growth will remain strong as buyers continue to take advantage of favourable conditions.

Homes are now selling at record speeds as unprecedented buyer demand far outstrips the supply of properties for sale.

Some leading economists have forecast prices will jump by 20% or even more over this year and next, with the pace of growth to start slowing down in 2022.