It's going to get even harder. Banks will no longer be providing loans at greater than 80% (APRA's making the call to all banks). So if you want to buy a $750K house you will need $185K cash (includes transaction costs). Message: get in property somewhere else where you can afford. It doesn't matter where (just no mining towns). But buy a rundown place that you can still rent out as it is. Smash the loan down for the first 2 years, kick the tenants out, spend $25K on a reno, increase the rent and go again. Don't be afraid of debt, just use to your advantage. If you borrow to the point that you have no disposal income after interest then you're playing straight in the bank's hands - mortgage for 30 years and maximised interest.
SteveK - you sound like a good bloke, but you haven't gone through any tough times bud (no one in your generation has). You're not battle hardened. Take my advice above, because if you don't, you will always be chasing your tail telling yourself "should have listened to that Red bloke on HC"
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It's going to get even harder. Banks will no longer be providing...
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