Real estate is less of a 'liquid asset' than shares: with legal costs, and stamp duty charged on every property purchase, it can be costly to buy and sell, infact most financial advisers suggest that when investing in property, you should think long term. This means not selling your investment property for 5 to 7 years, the average length of the housing cycle. Well-selected residential property should double in value over this time period. But you must always consider your assets, including your cash reserves and the proportion of your current home you own.

What impact might the birth of a child have on this investment plan?

Does it mean a lot to you to have an overseas trip in several years time?

To make the most of your investment, you should aim to borrow some or all of the purchase cost. This is called leverage: using the 'lever' of credit you can make a much more substantial investment and, in the end, reap much greater rewards.

Financial advisers may recommend that you follow a long-term goal of building up a property portfolio, where the rewards from your first investment are ploughed into buying a second investment property, and so on until you own a substantial amount of property.