VIC Advice needed - smaller house in a better location or a bigger n beautiful house further away

hey guys,

We live in Melbourne and we've found two houses that we are seriously considering but now we are sort of confused.

One of them is in Eltham - https://www.domain.com.au/property-profile/21-harlington-avenue-eltham-vic-3095
Its a great area, the school this house is zoned for is really good (I think Eltham east primary which has a rating of 98), and Eltham is comparatively closer to the city. The thing is that we don't love love the house but just that the location is good and we usually don't find anything in this area within our budget.

Now the other option is in Diamond Creed - https://www.domain.com.au/12-james-cook-drive-diamond-creek-vic-3089-2017314844
This house we really like but its further away from the city (15/20 mins of extra train journey), the schools are not that great just okay and just that in terms of pure investment and return we think Diamond Creek might not be as good in terms of getting rent if we had to move in 3-4 years time or even if we wanted to sell. But then we really liked the house itself.

So we are confused if we should buy the house that we like more or the one we don't like so much but is in a much better location.

Would love to get all your seasoned eyes on it and any advise/thoughts are welcome.

 

Which one did you buy?

 

I think he's gone again. Done two posts. The above, and another in May.