Where to go from here?

Hi guys and girls,

I am at a little bit of a crossroads as to what I should be doing next in relation to structure and stratergy and would love a little guidance from here.

I have just recently turned 31 and own a 2BR flat in Essendon North VIC. I bought the place in early 2007 and rented it out for a year thereafter (as it was a condition in the Section 32) and then renovated it and have been living in it since.

I have conservitivly got about 240K worth of equity and 20K cash at call. Now I really want to buy another property using the equity I have gained. I am very keen on Geelong (Houses and Units) and have been looking at the area for quite a while.

Here are the options I can think of, of what to do next.

– sell my place and upgrade to a townhouse in Pascoe Vale or similar and buy a cheaper property, maybe a 1bedder instead of a house or 2 bedder in Geelong.

-Rent my place out and buy an investment property and rent a place for myself

Also worth noting, we (the body corp) have pumped in about 5K each to get a new RD course and the whole block painted. If I were to sell I would not be prior to the works being completed.

If I rent it out, would it also be worth my wait for everything to be completed as I'm assuming I should get more in rent.

I am also wondering what the CGT impact will be if I sell as it was tenented for a year, however I had no choice in the matter as this was part of the contract of sale.

Your thoughts are much appreciated.

Cheers

Surfingtiger