G'day Maxi80,
                    I'm in the same boat and saving away to buy a house next year to renovate with my father.  I believe saving is all about planning and discipline as well as minimising everything that costs you money right now.  I also like to set myself small bite sized goals and write them all down such as $1,000 saved by Australia Day, credit card paid off and cancelled by Feb 28th, $5,000 saved by Anzac Day etc etc…

Work out how much you need and count backwards how many pays you have to achieve it then pay yourself first ie put that money away in a separate account on payday and don't touch it (not withstanding catastrophic emergencies of course).  It's amazing how you can cut back on things when you simply don't have any money left in your spending account.  I also give myself little gifts or bonuses for hitting milestones (ie credit card paid off new ps3 game (well new means 2nd hand or ordered online), first $1,000 motorbike improvement (seat repaired).

I'm on an average wage of $65k pre tax and my big goal is $20,000 saved by January 2012 starting from zero this year, I do however get extra work a couple of weekends a month as a scuba instructor.  I saved about $16k before I went to live in Thailand for 6 months and I'm working on the plan towards a property right now.

If you provide some more information about your circumstances and your finances I'm sure some more experts can help.

Good luck and keep us posted.

I understand your point on paying tax on the interest earned on term deposits but you pay tax (CGT) on your property once you liquidate as well plus you pay land tax each year, rates, insurance, electricity, water, maintenance, property agent and other holding costs and there is no guarantee a more "modern" expensive home isn't going to have a major expensive failure either.

I also don't like the analogy of house prices doubling every 7-10 years.  Sure on a macro economic scale it may appear that way with the median price per suburb increasing but over 10 years what used to be a daggy or outer area suburb turns into desirable "inner" locations and over ten years people add value to their own homes with renovations plus land invariably rises due to government manipulation of supply based on an archaic british model inherited from our first fleet descendants.  There is no rule of thumb that a particular house (remembering you are only buying 1 or 2) is going to double in value even though the suburb median may do so.  It's the difference between macro economics and micro economics which people don't seem to realise.

I don't want to sound like the devil's advocate and I think you should just go for it anyway if your incomes are as exceptional as you say your risk is minimal due to the obvious fat that could be cut from your budget.  Best case scenario you get extremely rich, learn a lot of good lessons and have a great time doing it and retire in 5 years.  Worst case you have to work for 10-15 more years and are rich anyway.

oh and every rented house is cash flow positive once it's paid off, hahaha, but you sunk $xxx,xxx of capital into it while that was happening which carries a huge opportunity cost.   

You'll have to excuse me for butting in as a newbie and still saving for my first property but wasn't the whole point of McKnight's book regarding negative gearing that you will never achieve a good income from it because you have to make a loss (large) to gain a tax advantage (small) so therefore there is an absolute limit on the amount of properties you can own before you have to make personal financial cuts regardless of how much money you and your partner earn?? If you earn that much buy silver and dump the remainder into term deposits at 6+% per annum.  The net present value and opportunity cost of your on-going loss making strategy would outweigh any future accrued benefit although obviously I don't have any figures so take that as you may.  Any loss to save on your tax bracket woudl have to be substantial and a loss is a loss (ie all negative).

If you want to gain financial freedom and why wait 10-15 years??!!?? (ie no job/retire) then it is a loss making strategy.

Personally I believe it to be a manipulative government rort which distorts the market, why can't I negatively gear my small business for example and reduce my personal income by the loss I make each year as an ABN holder?  It is also the reason as McKnight says in his book that of all the so called investors less than (10%?? don't have 0-130 at hand) own more than 3 properties.