Do a calculation of price to rent ratio, this doesn't take in...

Do a calculation of price to rent ratio, this doesn't take in all factors, It kind of ignores the benefit of capital appreciation, however if you believe that in 5 years prices will be similar to today then it is a fairly good gauge of which is a more economical choice. At 3% yield the ratio is 33, they say anything over 21 and you are better off renting.

The house I rent is an eye watering 47, however this is skewed as it is a large block in a good area that could be developed into 3 townhouses, still I am pretty happy with what I get for the money verses buying in the area. I think the whole market is skewed at the moment and I am better off investing money elsewhere and buying when things have corrected somewhat.

Hope that helps.