Thank you very much for taking the time to reply. I presently reside overseas in Japan where I have been looking at the property market in Brisbane with interest, with the intention of perhaps buying another investment property. However, with the recent weakening of the yen and fear of taking on more debt despite being offered pre-approval on another loan, I am quite cautious about taking the next step. In my case, living overseas has made me a non-resident for taxation purposes too in the eyes of the ATO. This also affects my PPOR since the announcement in the budget of 2012.

Thank you again for confirming my assumption that the basic mathematics holds true in having to pay $1000 a month on an investment property after rental income in mortgage repayments essentially and unrealistically means the property would need to make a capital gain of at least $12,000 per annum over the long term in order to make a profit. I guess though that this does not take into account the 'forced' savings mechanism.

Yes, your point about reducing out of pocket expenses holds true, depending on the individual's circumstances.

Again, thank you. Much appreciated.