First Home Buyer with Investment Purposes

Hello Guys, long time reader first time poster here!!

First at all, thanks to all of you that post your knowledge here, you can not imagine how much I have learned through reading this forum.

I’m hoping someone on here can help.

After some time saving, me and my wife are now close to having a 10% deposit + transaction costs + small emergency buffer for a property around the 550-650K mark.

We want to take advantage of the stamp duty exemption for first home buyers in VIC so we will move to the property for 6 months to comply.

We would like to get this first property converted into an investment place after 1 year, so we will move to it, live in it for 12 months and move out and back to where we are living at the moment, essentially because our son is going to a school we love here in Pascoe Vale. So, essentially we would become Rentvestors and we are perfectly fine with that, suits our life style.

We would like that first property to have solid investment fundamentals, on that price range, in an area that is in any direction but no more than 45minutes away from Pascoe Vale, as we would keep our son on this school for those 12 months. That and a minimum of 2 bedrooms are our only real MUSTS.

Considering we would be buying this with mainly an investment and wealth creation purpose and not for lifestyle reasons, we are not getting into any type Off the plan or brand new (following advice from comments of good gurus in podcasts and in this forum).

Now, having said that we would like to get into established property, the big dilemma is whether we choose:

1) A well selected investment grade old style apartment within a small block in an Inner north suburb like Brunswick, ascot vale, Moonee Ponds, Essendon, Thornbury or the like.

2) Or a bigger townhouse/villa/stand alone unit in a suburb a bit further back like reservoir, mill park, Epping or something like that; again this one would ideally be something a bit older style 1 in no more than 5, front facing, well located within the suburb, etc.

As mentioned, this will be our first ever property and we are a couple in our early 30s with one 7 years old kid, on a combined income of $150k/year.

And before anybody tells me (not trying to be rude though), I know I know I should be looking out of my own backyard and considering other states in AU, but honestly this is my first ever investment and I don't feel comfortable getting the first somewhere else. I will for sure for future properties consider the best areas in AU, because I know about land tax, opportunity cost, different markets cycles and all that. But at the moment I will just choose out the best possible option within 45min distance to Pascoe Vale and within my price range.

Sorry about the long post but wanted to give as much information related to my case as possible that way could get the best advice.

Thanks a lot in advance

 

If the stamp duty is tax deductible is it worth the 12 month disruption? I can see too many factors limiting your investment that really don't need to be there.

1. the desire to move in;
2. uncomfortable outside your own patch;
3. proximity to kids schooling;
4. love pascoe vale.

What if you became familiar with another place (maybe via holiday or maybe relatives live there) so that you are happier with alternate locations.

How does investment benefit from being 45 min to your kids school? Why not bite bullet and buy PPOR, or deprioritise the 'live in to avoid stamp duty' and open up options.

 

Have you had a look at what you can get in those suburbs for up to $650K?
Might make the decision easier if you can't find what you're looking for in those suburbs for that kind of money.