Hi there, I have been researching investment properties in my home town Warrnambool, and intend to purchase soon. I have had a house in Warrnambool inspected by a builder, and have finances ready. My concern is that Warrnambool currently has poor capital growth (2.5%) but it has reasonable rental returns. The house I'm looking at is $300k, expected rent $330. BUT I'm starting to consider Ballarat, current capital gain 5.5%, but harder to service loan, with poorer rental return. If you had access to borrowing around $300k which would you go for. Plan is for long term hold. Any advice gratefully accepted.