I'll be eligible for the first home owners grant - that'll just go towards fee's or paying off a bit of the mortgage.

As mentioned in earlier posts, location is always my main point of interest - a house can fall apart and be rebuilt, you can't changes its location though (well, not easily, but you get my point).

We'll see what happens and I'll keep you updated as we go.

As long as you are aware that the Aussie market is over valued and are willing to accept the risk then it is your decision. Good luck.

Oh I found this about aussie home prices http://www.dailyreckoning.com.au/reader ... 010/04/14/