Thanks for all your responses

Lucy – Good to hear someone in a similar situation taking the dip and now I'm slight more confident in taking the plunge. When did you buy your first property and how much did it cost you?

LA Aussie – I have no idea what Capital Gains Tax is as yet but I'm sure I'll will find out about all that jazz when I'm in a position to lease . At the moment my short term goal is to get a loan and buy a property

Tatts – Yes I do intend to get the FHOG which I believe is $7000 at the present time and I'm sure I won't rent it out until I've lived in it for 1 year

Foundation – You are certainly right about getting the cheapest property possible and I don't intend to spend extacly 300k. However I did a little research and found that a 2 bedroom property (~30 mins from CDB) nowadays costs between 250K and 300k. I could opt for a single bedroom one but I don't think that has much resale value because I think most house buyers are either couples or families (correct me if I'm wrong). In regards to 100% financing and LMI I'm certainly intending to avoid that if I can to reduce cost.

By the sound of things so far it looks like I'll have to continue saving until I have 60k to take out a max of 300k loan. I estimate that this will take me to mid July 2008, do you guys think property prices will double by that time? That's what I'm scared off which is why I'm pushing to buy now rather than 1 year later. Are there any other options? If LA Aussie is right then all I can really get that's within 30 mins to the CDB  for 125k is a single bedroom apartment/townhouse. Hmmm decisions decisions

Kenzel