It was just a vanilla P&I loan on standard, variable rates, I've never touched IO. I had saved up a decent 20% deposit though $30k (20k from living at home saving up until age 20 + $10k borrowed from my parents which I paid back in the next 2 years). And because of that, I didn't need LMI. Interest rates were something like 5.5% from memory and I also got the FHB grant back then which I think gave me $7000 and a discount on stamp duty, although I don't fully remember how much it added up to. But anyway, with all of that considered, after I'd handed over the deposit, the fortnightly repayments were pretty much on par with renting. You might be right and it was still *slightly* higher than renting, but I specifically remember that there was bugger all in it. The hardest part was just getting that initial 20k deposit because I wasn't earning much. Even without the extra 10k from the parents, I still had enough for a 20% deposit into a cheaper suburb which I was going to do anyway.
Look, my main point is that resi property just doesn't represent "great value" any more. Sure, competition is tougher all the time, the rising tide happens and I have never doubted the theory that property just eventually gets more and more expensive over time. But I am just saying, I am not compelled to race out and load myself up with ridiculous amounts of debt in the current market. There is no reason to rush and there is just nothing that you're missing out on. I am not compelled to buy. I believe my efforts are much better focused elsewhere. I am just grateful that I did pretty well because I made sure I got in early enough when times were good and I was exposed to some of the best growth years ever. I believe I am best off by leaving my equity just sitting there as a nice buffer for now and coming back when the situation changes a bit more. There is just no rush any more, you're not missing out on anything by sitting on the sidelines during this year.
I have also previously purchased during a local market peak in 2003, sunk $30k on landscaping and fittings on a stupid house and land package while the market went nowhere for 3 years. Financially, I would have been totally better off renting for those 3 years. I was lucky to exit out at break even and made 0 profit after loads of sweat and hard work. I bought at the stupidist time in a peak and I sunk money into a stupid property that was mostly depreciating building and not enough land content. But the biggest factor was that the market was going sideways. Enough said. If I had just rented, I would have at least saved something or perhaps gone on more overseas trips or *something* anyway. But a great learning experience and reminds me not to be compelled to buy in these local peaks when the value isn't there. You can seriously be better off renting during certain periods and this is another one of them where I see the exact same thing happening all over again, except this time I reckon its even more of a stagnant/cooling period. Maybe you can rent for the next 3-5 years and come out better off. A great time to focus on health, income and wellbeing, getting yourself into an even better position for when property becomes better value later.