As Jamie M said its up to youWe currently have our mortgage set up (PPOR) with a 100% offset interest only set up. We put all our funds into the offset and then build it up so we can avoid Mortgage insurance eg 20% deposit plus funds to cover purchasing/renovation costs. Then we take it out- usually just write a cheque and then purchase an investment property. We pick cash neutral properties (usually ones we renovate and then rent out at a better price) so we don't reduce our ability to add extra payments/ and do it all again. We are currently on the look out for our next purchase in early 2012. We also will use our PPOR as an investment property in the future, and that is also why we pay interest only. You need to work out what you are comfortable with. Also do your research you may want to invest in your state first- in areas you know well.

mine doesn't automatically sign me in…… so I only sign in when I post.

Ours were great at getting a tenant, it was never vacant, rental return was best in the suburb for the house type, good price and the rent was always on time (as they made their clients use an electronic direct debt system).

BUT……..

poor inspections…….. where issues are under reported. Eg noted at the 3 month inspection there was some paint coming off the walls. We called and asked about it when we recieved the report. Manager assured us it was only minor superficial and would be fixed. When they left a year later……. it was 1m x  1m of paint missing on a wall….(????)……… our property manager then didnt want to put in a claim because they claimed we rented the house out that way…….we got our money back in the end but there were numerous issues that should have been dealt with during the inspections that was not dealt with. They did their inspection after the tenants left, and said everything was fine. We went and had a look for ourselves……. very shocked as their final inspection was so glowing of the condition of the house….. turns out they got the carpet cleaner to inspect the home (yes I was told the cleaners inspect the house- how would they know the condition of the house they had never even seen the house before). Anyway thank god for bonds (which covered all but a few hundred dollars of damage which was covered by insurance)…….. We learnt our lesson. 
 
AND

Communication is the biggest one for me though. I found it really hard when I wanted to find out something. Everytime I called it seemed there was a new manager of our house, and a different person for each issue which mean talking to people who didn't communicate with each other.

We are waiting for the right property, with the right price……. and we're being fussy. Hoping to get back in by early next year

It normal to be unsure of things, especially when your first starting out.

What level of risk are you willing to take on?
What can you afford?
Do you have DIY skills to tackle a small renovation?

These are good questions to ask yourself. Each person in property will tell you a different story on how they made their money, and each one swears by something else. However you need to take the time, and work out what you can afford and how much risk you are willing to take on.

Have a look at the market around, API magazine is good for the numbers on the shape of the capital city markets.

Nothing is guareenteed in property especially in this market. There is a strong movement towards positive gearing verses negative gearing mainly due to the fact most people believe that the market will not grow significantly in the next 10 years therefore the capital growth in "most" areas will not be worth it. Would you keep an underperforming asset if its costing you money?

You sound in a similar position as me. We recently sold our investment property after realising a profit of 80% over 4 years; but we realised that our investment was no longer performing and was losing us money; if we sold a year earlier we would have realised a almost 100% return (the decision to sell has been a sound decision it would turn out now worth even less). This asset was cash neutral/rent wise when we sold. We cut our losses and are now waiting for our next investment- which currently we are leaning towards another renovate and hold- and hopefully either positively or neutrally geared. 

Goodluck on your decision. At the end of the day maximise your own skills towards an investment that works for you.

Anyone else think it was generous of channel 10 rounding the prize to $100,000? I just thought why bother…….

I wonder what the other 5 contestants who went to auction really thought of the process. The show was so flawed, eg 24 becomes 6 who take their houses to auction, but only one keeps the so called profits……… I'm assuming the contestants were paid min wage during their time on the show; but to come out with nothing else. At least on the block they had a fair chance of getting something…… (or at least 3 of them did).

Anyway interesting….