This has been the case in Australia for decades now. Average house price is AUD$1M. Standard deposit is 20%. Government has just allowed first home buyers to g

This has been the case in Australia for decades now. Average house price is AUD$1M. Standard deposit is 20%. 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 https://en.wikipedia.org/wiki/Capital_gains_tax_in_Australia [2] https://en.wikipedia.org/wiki/Negative_gearing_in_Australia https://en.wikipedia.org/wiki/Negative_gearing_in_Australia