increase your rents now!, page-42

you are right regarding the blanket "median" quarterly data

but over a year, a 1% rise from 100 sales doesn't point to the declines you mention.

A 6% loan will cost you more than rent/ incl rates and insurance but not much more at stated $440k buy vs $460pw rent.

When you consider the move costs, security and abilty to improve your home and do what you want. you'll probably be able to lock in 5.5% in late 2013.

$360 @ 6% $21,600
$80k @ 3% net $2,400 (opportunity cost)
rates/ins $2,400

$26,400k/ 52 = $507pw

so you are out around $2400 pa or need 0.6% cap gain to make it up over long term.

Wouldn't take more than 3% average pa gain to be making 12.5% tax free gain for life on your $80k deposit.

Upside is when you get surge in market sometime in next 10 years.