I was very scared with my first IP but in retrospect it was very low risk. So my advice is to find a 2 bedroom unit in small block near public transport. Do you r research and find out where the low vacancy rates are. Capital gains may be slower in Melbourne but will be easier for you as you would know the areas. Check all the body corporate minutes and finances to make sure there are funds in the maintenance kitty and no major works about to be undertaken. Purchase a unit which requires some tidying up, maybe new carpet, curtains and painting but is structurally good.
I have a small house 30K from Melbourne DBC which has never been vacant as it is close to transport and in good area but not close to CBD obviously but for a First IP, I would go for a unit close to CBD as you can't go wrong with this even if you no great capital growth for a while. If you are serious about investing, then you are in for the long haul. Definitely get your equity from your PPOR and have it designated as investment Line of Credit, then you have your deposit and get pre-approval for the rest of loan (from different bank) and then you will have bargaining power when putting in offers.
Happy hunting.
I have a small house 30K from Melbourne DBC which has never been vacant as it is close to transport and in good area but not close to CBD obviously but for a First IP, I would go for a unit close to CBD as you can't go wrong with this even if you no great capital growth for a while. If you are serious about investing, then you are in for the long haul. Definitely get your equity from your PPOR and have it designated as investment Line of Credit, then you have your deposit and get pre-approval for the rest of loan (from different bank) and then you will have bargaining power when putting in offers.
Happy hunting.
