Hi members of PC!

Hi all, just stumbled across this site, looks like a great resource!

I'll try keep it short n sweet. There's a bunch of layers to this.

I have 500k due to inheritance and astute saving. I live in inner-north Melbourne in a sharehouse atm (800ish a month). I'm in my mid 20s.

I have a steady job in the public sector (110k/yr), partner (not yet working full time) and have always enjoyed nature and the idea of a cabin in the woods. Due to COVID I can see WFH being a longer term (3-6 months) thing. Work's also good with WFH flexibility (3 days in office, 2 at home).

I want to buy in regional Vic, something like in the Yarra Ranges as a short-term home (for owner-occ) and a longer term as a weekender/Airbnb/rental property. The houses I am looking at are 3 bedders in the 450-550k range, so could afford it almost outright. My parents are also nearly at retirement.

I also know for my career I will get some flexibility to live regionally, but I will need a Melbourne place too, we could probably afford a 2 bedroom unit in the inner north on top of the regional property. I also recognise that I could potentially buy something typically out of my reach ($1-1.2m, 3-4 bedroom Melbourne house) if I wait a bit longer, live in it, rent the other rooms out and borrow more.

So a few questions, and I note none of this is financial advice, I need to make my own choices.

Should I go buy the regional property? If so, should I take an 80% loan and put excess $ into it, with redraw/offset facilities? So that I can go buy something in Melbourne later? I'd rent the property out in that case (1500/month repayments, 1200-1400/month estimated rent)

And if so, is redraw better here since I can put so much into the principle?

Or should I hang tight, do the occasional Airbnb, and buy something in Melbourne, noting that I am paying rent here anyway - and may get a great opportunity/may watch it plummet?

I feel like I will enjoy the country more, noting that my partner will continue to live in Melbourne and I can visit and stay if need be. For me Melbourne's a place of work, occasionally going out and seeing mates really. And my mates are keener to get out of Melbourne in general, let alone during COVID.

Thanks in advance.

 

Welcome @BictoriaVitter - and keep well!