Prospective home buyers with a secure job who have saved a 20% deposit are better off buying than renting in most of the capital cities, shows research from RiskWise Property Research.

Calculations by the property risk assessors show that principle and interest repayments are lower than rent in all the capital cities except Sydney and Melbourne. The research also found that interest-only repayments for both owner-occupiers and investors were also lower than the annual rental cost in most areas.

In many areas, rent money is dead money, says RiskWise CEO Doron Peleg.

“When it comes to houses, the preferred dwelling option in most areas of the country, in many cases it is cheaper to buy than rent,” Peleg says.

“If you buy a house you can start building equity, particularly when you take a long-term strategic view, and if you are in a good position to negotiate well and buy a ‘Grade A’ property that will serve your family for many years to come.”