I know nothing about the AU housing market, so interest only loans at this size had be literally shook! 

Can't miss a pay cheque, can't miss a rental cheque, can't afford to have your property dormant for too long, can't have too much cost in repair, can't afford property taxes to go up, there's just so much risk here, and clearly mispriced 

I get the person thinks they getting rich on paper, the agent gets commish and the banks pocket interest so everyone thinks they're winning but leverage is a funny old thing, its force multiplier going up and down

I guess you're right though Aussies know housing can never go down if they're willing to sign up for x10+ leverage without blinking