We haven't bought a property yet, so this will be our first one. I need to utilise part of my salary package for housing. We have about $400k equity in our house. We have about $26k for use on housing (ie towards rent /mortgage repayments or other expenses.) possibly thinking about something around 400k or maybe $600k I have been reading a lot. Some ideas that we have been coming up with, and are keen to get input. 1. Keen to buy and hold for 20 years 2. Was keen to go in Sydney somewhere as its familiar, will always be in demand over the long term and feels less risky than somewhere unknown. Even though Sydney seems at end of cycle (possibly). 3. Was keen to possibly go inner city 5-15km (not cbd because of high rise apartments) in small unit block, second hand, eg Ashfield, maybe Dulwich hill or summer hill. Maybe 1 bed or 2 bedroom. Realise the significant new unit being built with increase supply, and decreasing rental yield. Yet feels like over 20 years this may go up again and is less risky than going out west?? I am wary of buying in places where lots of high rises are, as lots of supply. 4. We bought the residex top 100 predictions. In our price range, some of the more positive ones for units were meadowbank and Stanmore. This with high predictions -4star and capital gains. 5.And for houses the residex also put places like Bligh park and mount Annan for houses. I get the increased interest in NW Sydney with train going in, and also good white collar work there. good vibe etc. But Bligh park seems too far from this new train link. It's closer to Windsor. not sure why it has such a high predictor. Would work well for our price range. But doesn’t seem as wise as say rouse hill or Stanhope etc. Also I have read in Somersoft that Bligh park was in residex in 2007, and 2013 http://somersoft.com/forums/showthread.php?t=94658. And it hasn't been doing as said. Not sure about mount Annan. The idea of a house in north west seems to have some sense but many median prices are out of our range. tho 6. Maybe we don't need to rush in as yet, as many of you guys have been saying likely to flatten out in near future next few years? 7. some have recommended this book by john linderman who used to work for residex:Mastering the australian housing market written 2011. is it any good? worth reading? 8.Any wisdom on any of these points would be greatly appreciated. Advice on where we should buy?