Hi Property Chat community, I wanted to get opinions regarding how I should proceed. I’m 25 years old, medico and I have just bought and in the settlement period for my first home (FHB) in lalor park. It is a 2 bedroom, 560m2, r2 zoned. 19 min walk to station. Purchased for 610k. Rent would be $390-400 a week. I plan to live in the property for 6months and rent out the other room in the meantime and then transition it into an investment property. I have got a granny flat quote for 2 bedroom, brick for 120k from 5 star granny flats. Now I have been advised by some people that building a granny flat would be overcapitalising and to use my $86000 in savings to purchase another property rather than get a loan or cash loan for the granny flat from Mum and dad for the remaining 34k. As I am medico I can get 10% deposit no LMI. My borrowing capacity would be 400-500k. Haven’t got preapproval yet. Should I Build the granny flat and then turn the property into almost neutrally geared? And if so, should I get a loan or should I try and get a cash loan from the bank of Mum and Dad? Purchase an investment property with the savings I have in the meantime somewhere with close to neutrally geared somewhere in Melbourne with a BA. Also should I build the granny flat in the future when I have maxed out my serviceability?