My thoughts were houses (not units) in suburbs around the Melbourne median – which was $550K in Dec 2012.
Key factors in these suburbs: High private rental% vs Gvt rental; high weekly household income; growth over the past 5 years and within 10km of the CBD. In the North/Northwest – Yarraville, Seddon, Kingsville, Preston so far ……

$600K each with $200K deposit each.
$500k to invest in property in SMSF – the rest is shares