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.....or you could go and rent a caravan somewhere and use your 1.2m to buy a shed or office paying you $ 2,000 per week clear rent.

Sam, I suppose the two statements don't mesh too well, and so it is hard to give a sensible answer. The western suburbs require a bit more moolah than 1.2m to get in. You're competing against mining co CEO's and silks and well established business owners. They sneeze and 1.2m falls...

One of me neighbours down the road is selling off half of his back shed down the back of his block where the chooks used to be. Why don't you save up a few more years then pop an offer in.....you never know, you might just get (c)lucky. :)