Hello Sanctuary, I have read the responses so far and the upbeat language of those responses will make my advice somewhat dull.
Your enthusiasm is a great asset to you, but you must ask yourself at present ‘what can I afford’?
If you can COMFORTABLY afford the repayments of 475g at current interest rates, calculate an additional 2% IR into the mix. Property I feel is reaching very low levels of affordability for the average joe and remember the country consists mostly of average joe’s.
I cannot see property prices rising for quite a while yet on average but ofcourse there are always areas that will buck the trend. If there was a website or book that accurately predicted the next boom area I would love to know what they are.
I think it comes down to research, education and due dilligence on an investors part to minimise risks and maximise profits.
To find significant capital growth in the areas you have mentioned, by either subdividing or renovating would be an enviable feat and I would take my hat of to you.
Do your maths on renting out your investment property and renting yourself, If your business allows you to work outside the CBD why dont you move out to the burbs for a while, that would increase your cashflow.
As far as finance is concerned, you will probably have to show consistent savings for 12months and demostrate to the financer how your business will continue to make money.
Ultimately, if you can comfortably afford repayments over time you wont lose but finding quick capital gains may prove more difficult.
Chad.