Makybe -property hasnt gone up unabated, it declined on average during 2008 already and no one here believes property "has gone up in a straight line" or "believe that property will keep rising unabated". It never has and never will. I assume you are saving a deposit of say 10% at least? Over your life that first PPOR leveraged with that 10% will be the best investment you'll ever make.
Santa -long term interest has NOT been 8-9%, it has averaged 6.5-7% for over 15 years. It has been only 9% twice during that period, the last being VERY brief in 2009.
If we go back to 30 year averages (long term avergaes), Australia will have average prices of $640,000 in 2016 (from $468,000 presently). A slower growth than last 10 but I did the maths on another thread and it still looks like a great LT investment...especially for you Makybe with limited funds.
