Best conditions in a decade for renters to buy

The current property market is showcasing the best conditions for property investment in more than 10 years and could present renters the ideal time to become home owners.

A report released by QBE LMI shows that by June this year, the cost of renting in Sydney and Melbourne will be closer to the cost of paying off a median priced house than at any other time in the last decade.

According to QBE LMI weekly, median rents have passed 66% of median home loan repayments.

Conditions in the other capitals will be even more promising with weekly median rents expected to approach 80% of median home loan repayments in Canberra, Brisbane and Perth.

The differential between rental yields and interest rates is also estimated at 2 per cent. QBE LMI expects this to result in escalating investor interest in property through 2009/10.