$250K for PPR - Options are few and far between

Hi,

First timer here. I'm seeking some opinions on my investment options surrounding some very limiting circumstances.

My situation is that I can't spend more than $250K on an investment property. I'm a first home owner and to reduce my LVR I'd like to use the $32K available for a newly constructed home. This leaves me with 2 options really; Build on the outskirts of Melbourne or buy a cheap but new 1 bedroom apartment within 20km of the city. Lifestyle wise the apartment option seems more attractive as I work in the city, but investment wise I'm geussing it's not? Considering my price range (or lack of range) should I head more down the road of positive cashflow over capital gain? I suppose buying in rural Vic is a third option?

Nathan

Never go cashflow over capital gains.  - but how confident are you of the capital gains/?

Terryw
Finance Broker
Solicitor

Hi Terry,

Not all that confident. In fact with my inexperience I doubt I will be able to accurately pick a good growth area. Do you think capital gain is possible in a new apartment under 250k? Do you think it's worth paying for some financial/property advice at this stage?

Thanks,

Nathan

I doubt that you will find an apartment under 250k in this market that will have good growth.