Hello! Newbie here although I've been reading and learning from the forum on and off for a few years. Hoping someone can help me nut out our strategy. My situation: married; me 38, working PT. Husband 42, working FT. 2 kids (3 & 1). No properties. $90k deposit, with a $50k gift coming. Incomes: $216k gross (we can salary pkg $35kpa each - nfp workers) Lending capacity up to $750k but we're more comfortable with around $400k for reasons I can explain later. Long term goals: (a) buy 4bed PPOR in melb (likely bayside so prob looking $1.5-2M); (b) passive retirement income of around $100kpa in 20yrs time We have an interest in renovation (I'm also heavily interested in interior design and have a love of mid century housing so hence the desire for a PPOR at some point). We are happy to rent around our desired PPOR area so kids are growing up/schooling where we would eventually like to settle until in position to buy. That could be 5-10 years down the track, that's fine. It would be jumping on a unique property whenever it became available as opposed to choosing from whatever stock was on market in price range when ready to buy. We will never save the cash deposit for this purchase ourselves, hence our strategy below. Strategy: To buy growth IPs and complete cosmetic renovations to quickly build equity. Eventually aiming to build to at least $500k(+?) equity to use as PPOR deposit. Once PPOR purchased we would move towards yield IP to bolster the passive retirement income Im looking at 2 ways to achieve this growth and can't determine what is best for us. I'm getting caught up in short term and longer term growth prospects. We buy unrenovated IP around $400k. Considering Ballarat or Bendigo if horse has bolted in ballarat We borrow more and buy on Melb metro fringe. I don't think we could reno then (we'd max out our cash). Option 1 could give us quicker short term equity but lower growth over long term. We don't necessarily need the yield of a regional buy however a bigger loan (Melb) is more scary for us. With option 2 I feel we may get higher growth over the long term which is great but will take us longer to get into PPOR. We could do option 1 first, then look at metro Melb for future IPs but surely buying into Melb now would be better than in 2-3 years, especially given we may look for PPOR in Melb in 3-7 years Few other explanations: Were looking regional VIC because I'd like to project manage the reno and close to home is more convenient, esp with young children. I have lots of long service leave I would use during reno to cover my wage. We could look Adelaide or Brisbane as we have family there but feel regional VIC could be just as good as these with less hassle We didn't want to max our borrowing capacity as we need to upgrade car, and also want some our cash to cover reno project costs Were comfortable with slight neg gearing but would feel safer with a cash buffer in this case. This makes the Melb metro option less attractive since it would likely be neg geared but also take all our cash ' If you've made it this far, thank you! Thoughts, feedback and constructive criticism all welcome.