Blind67 – firstly, congratulations! I am always happy for people who can tackle their principle mortgage (at such a young age!) and also maintain a good cashflow.

There is some fantastic advice posted above, and my only added advice – is to keep getting advice! There is nothing like making an informed decision and based on your current figures, you have many investment options to consider.

In terms of "opinions", and not to be taken as advice as this depends on each individuals situation, but I know what I would be doing and that would be using existing equity to continue duplication. That could mean finding 2 or 3 properties in the below-median range that are great potential for growth to secure retirement.

I agree with your comment regarding negative gearing, and believe any investor should only use it as a 'tool' for growth – not for specifically targetting tax back. I always target neutrally geared/positively geared properties, but if the leverage causes me to go negative – and the potential mid term growth outweighs the gearing, then I go for it (I ofcourse take due diligence in property type, location, median price for suburb, owner occupied ratio, age of property)

Regardless, its a very exciting time for you – good luck.

There are many different schools of thought here, but I will provide my 2 cents worth. Your intent here I presume is maximum growth as its an investment (with no intent to move in later at some point)

Have a look at some historical growth data in the area – previous sales, suburb trending etc, and you will likely find that % growth tends to be greater when buying in the median to below-median range of residential property. You will also find when buying in the upper range for investment in North Lakes, your rental yield will not be as attractive as when buying say 450-500.

Additionally, stick to the standard investment rules – land appreciates, buildings depreciate (so a larger block size for a fair price is always great!)

Good luck!

John