Thanks Shadow - the properties will be to give to my kids as a fallback position should they ever come across hard times. (divorce, job loss, other hardship)
I am happy (yes happy) to drop 30K p.a. * (pre neg gearing) in addition to the rental income into the repayments to make housing affordability and security a non-issue for them.
So if they get great 20 year capital appreciation (with accordant rent rises) - no worries the'll be positively geared sooner and my kids wont be locked out.
If they go no-where over a 20 year period (as some are suggesting) then the'll be able to afford something of their own and these will just be a bonus
I see it as a long term inter-generational lifestyle and security hedge (that i'm happy to pay for) than as "speculating" or a "get rich quick scheme - this is one of the benefits of housing investment over shares - If everything turns to crap at least your kids have a place to live for a few years to get back on their feet - they cant live in a share portfolio.
And if you put them in a testamentary trust they cant be taken in a divorce
* some people drop more than this much on 12 years private schooling