Hi
After about eight years, my wife and I are in a position where we are about to pay off the mortgage on our three bedroom townhouse in a modest Canberra suburb. Our two major goals over the next 10-20 years are to build a new family home (probably in Canberra) and to purchase another dwelling (probably a one bedroom apartment) in or close to either Sydney or Melbourne's CBDs.
Given the amount of land which is released by the ACT Government each year (or lack of it) in areas where we want to buy, the prospect of building may be sometime away for us (possibly 2-3 years). Given this, I am wondering if it would be sensible for us to borrow and invest in a Sydney or Melbourne-based apartment now (and reap some rental income in the short-term and also possibly some capital gains in the longer-term), or alternatively, should we simply invest our savings over the next couple of years in a term-deposit in preparation for financing the building of our new home?
I can see a lot of opportunity (and opportunity costs) in relation to both approaches. Any feedback from others (particularly those who have or are facing a similar dilemma) would be appreciated.
Thanks
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