"justis..Banks are now lending up to 95% lvr so it is happening...

"justis..Banks are now lending up to 95% lvr so it is happening right now.."

Yes but as I asked who who puts down $50k on a $500k property? Not your average first home buyer.

"But it has a huge detrimental effect on your borrowing capacity going into the future as your equity has diminished"

In the short term yes but some one borrowing 90% or so for a property is not or should not be raking up further debt.

AS for advancing business ideas, that is something you can do once you have decent equity in property. Another great feature of owning property, you go and try borrowing against shares. Not much joy with that