2) Rent. There is an unnecessary stigma about renting in this country. At this point it is a very attractive proposition and people should consider it. Financing through a bank is 8%. Financing through your friendly landlord is 4%.
Fully agree. If you aren't in the position to buy yet, then do something about it! As YM said, invest your money, have it work for you (heaven forbid some people may even choose to buy an IP before a PPOR).
Unfortunately, this is not in the mindset of the majority yet, because Aust. up until now has still been a place where generally anyone can buy their own home (even if that does entail some hardship). If in fact prices continue as they are, then perhaps it will become a reality for more people that they no longer have the automatic choice of buying or renting. But until that is more widely accepted, prepare to hear a lot of whining.
Look at cities throughout Europe etc. - renting is the norm, owning is unusual, and in a lot of people's lives not even considered. And I'm not talking about big capital cities, I'm also talking about smaller industrial cities in regional areas etc. too. Why do people feel this can't happen here?