Jamie – He did try to explain why variable was better than fixed  in my circumstances, but it just didnt seem to add up, I will get further advice with another broker or perhaps a financial advisor. The broker advised me that for me to obtain an interest only loan my LVR had to be below 90%. I wil try do some more research into this, thanks for your reply.

Jac – Im in the western suburbs but wouldnt mind driving out too Blackburn to check out the APN meeting, looks like the next one is the 4th of June. Might catch ya there!

Derek – The property will be finished in 2014 but I am not considering it anymore. For a start I cannot obtain a large enough loan for it and from the research Ive done and the comments on this forum it doesnt seem like a smart move.

xdrew – How do you forsee a rise in inflation? How do the public police the rate of money printing in Aus?  Still trying to get my head around economics……..my area of expertise is chemistry/eng, just a tad different.

Thanks for all your comments,

Haha, no I am not dissapointed but on the contary appreciative for the good advice. As I mentioned, I am new to property investment so my main objective at this point is to get out there and learn as much as possible.  My attraction too this particular property  was its prime location….."location, location, location" one thing I remember from watching/reading all those realestate adds. 

Kristin – A positive cash flow would be desirable but in reality I think I would be negativaly gearing. I would much appreciate your advice on investment oppurtunities around melbourne. My next move is pre-approval from a broker. Thanks for your reply. 

JacM – Maybe I need to look further from the city as all the houses with gardens within 15 km of the city is way out of above my price range. I never considered the body corporate increasing in the future, thanks for that..Any idea on how body corporates usually increase in price? I am def keen to check the knowlege sharing seminars, so thanks for sharing that.

Jamie and Ballerina – When you say current environment, what do you mean? Is it a bad or good time to buy in Melbourne? Is it wise to secure a fixed interest rate as the rates are low at the moment? I am speaking with a broker tonight and will hopefully get preapproval for a loan…….then I will continue scoping the local market. Thanks

So high rises with body corporates are not the best investments? I was told that apartments in NYC appreciated rapidly with an influx of population……..are we not seeing something similar in Melbourne? 

Thanks again!