I am not trying to hijack the thread, but I would say if you can comfortably spend one third of your gross income on interest repayments, and assuming rental return of 7%, interest rate of 6%, interest only loan, $10K costs, and no outgoings you should be able to afford $222K worth of investment property.
Thank you for your feedback everyone !!I am relatively new to Property Investment and need to learn HEAPS more yet.
I have just subscribed to API magazine and am currently reading Jan Somers new book.
Hopefully my knowledge will increase enough to make a wise decision on my first IP.