Thanks. Yes to both, however I’m still not clear on the best path. Alice Springs had 17% growth in the past 12 months. I would consider buying an investment property here, but none seem to be positive geared, that is unless I pay a substantial deposit to make it positive geared. Rental returns are reasonable good 7% and more. I had thought it might be a good idea to rent what we live in and purchase an investment property as there may be advantages in expenses I could claim on an investment property. I’m not sure if this then means I am negative gearing though, which is not what Steve’s wealth creation philosophy is about.

I have just moved to Alice Springs for a 2 year work contract, and am wondering whether it is best to buy or rent the house we will live in. What will this decision do to my intention of building up a portfolio of properties? The houses I am looking at cost $350/$400 per week to rent, and to purchase cost around $350K plus Stamp Duty of around $15K. Deposit would be $22K with a loan of $334K repayments $515 pw over 30 years. I own one house in Sydney which is currently rented out at $310 per week and providing positive cashflow of $30 per week or $150 depending on whether I pay principal and interest or interest only.