"That means in February 2012, it takes 1.8 per cent less of your household income to afford the mortgage than to rent. Of course, this assumes you have saved the deposit to afford a mortgage, and that may well be another big barrier for many," the report says.
McDowell Professionals sales manager Phil Hereford said now was a good time to buy as mortgage rates were low and banks were lending more money to people who qualified.
"There are more first-home buyers in the market place today than there was, say, a year ago ... but not in huge numbers," Mr Hereford said.
"The first-home buyers that we've got there at the moment, they're noticing that our mortgage rates are low," he said.
"The banks are now lending back up around 90 to 95 per cent providing they qualify."
"It's an amazing time for anybody to buy, stepping into the marketplace."
He said rents in Auckland had increased up to an extra $150, but in Rotorua it was nowhere near that. In Rotorua the rents had risen an average of $20 to $30.
He said first home buyers were realising the differences between buying a home and renting was not a lot, and with a large amount of homes for sale in Rotorua, buyers were getting good value for money.
"There is still in excess of 1000 properties on the market."
A seller needs to seriously consider a buyer's offer, he says.
"It's good value for money at the moment".
Rotorua's Jessica Hathaway bought her home about two years ago and said she would never go back to renting.
She and her partner live in Lynmore and spend about $300 a week on their mortgage.
She says she knows people renting homes in the area and paying between $280 and $330 a week, so buying and paying a mortgage seemed a good option.
"We bought the house we were renting off my parents. They were wanting to sell and thought we would be better spending our money on something for us and our future, rather then renting another and paying off someone else's mortgage," she said.
Paying for her own mortgage had also made her more responsible as she had become wiser about how she spent her money.
WHY RENT:
It can be cheaper than a mortgage
You don't have to pay maintenance or worry about improvements
You don't have to pay rates or house insurance
You can move from house to house more freely
You don't have the worry of a mortgage/debt
WHY BUY:
Your money is going towards a worthwhile investment
It can be cheaper than renting
You can make money if you buy and sell wisely
You can improve your property
No landlords to worry about
