A friend of mine recently learned that they are going to have a baby (not planned) but they are ecstatic nevertheless. His wife is gonna stop working for a couple of years when the baby comes and they only have a borrowing capacity of about $200k (which will drop significantly when the baby comes and his wife stops working). They have 1 IP that is cash flow neutral, rent where they currently live. I suggested he should look into buying 1 more IP before the baby comes. So what would you buy if you only had circa $200k in borrowing and enough deposit to spare for a 88% lend? He is after CG with a 5 to 10 year outlook. I suggested 1) studio unit in Perth middle ring(Belmont etc) in one of those old complexes 2) Elizabeth and surroundings in Adelaide 3) Stay away from regional cities -- too much uncertainty.