Government has just allowed first home buyers to get a mortgage on a 5% deposit. While that sounds great, it's obviously just encouraging more debt to flood the market and drive up prices.
And of course the government doesn't give a shit about housing affordability. The standard practice here is to get at least two mortgages: one for the house you want to live in, and one for an investment property that you'll eventually sell to pay off your other mortgage.
Sounds stupid right? Well, not when the government gives massive tax benefit handouts to property investors:
1. 50% capital gains tax discount.
2. Negative gearing: basically the losses on your investment property can be claimed as a tax offset against your other income.
[1] https://en.wikipedia.org/wiki/Capital_gains_tax_in_Australia
[2] https://en.wikipedia.org/wiki/Negative_gearing_in_Australia