I'm looking at purchasing my first property next year. I'm on 75k/pa (excluding super) and will have approximately $125k in savings by year end. I am undecided whether to purchase an IP or PPOR. I currently work/rent in Melbourne CBD and would love to continue doing so. However, this would mean I will have to go the IP route and at 75k/pa, I'll probably have to settle for a more affordable IP place (possibly at 300k-ish) so that I can service the mortgage and pay rent for a city pad ($1.5k/month) at the same time. Therefore, I'm inclined to purchase a PPOR. If it is PPOR, I am looking for a place (possibly villa or unit with 2 bedrooms - will consider 1 bedroom too) around $400k ($500k max) with a short commute to the CBD (possibly inner west - loved Yarraville). Am I doing the "right" thing by going the PPOR route? Thanks in advance.