This was discussed on another thread.  I'll try and find it.

I am facing a similar dilemma.  Watching this thead with great interest.  It's very nice to know that I could sell up CGT-free and plunge the money into another property, but frankly I see that as having wasted money in stamp duty and legals buying the house in the first place.  Keen to see what others advise you to do.

By the way, if the property happens to make a loss while you away, ask your accountant if you can carry the loss forward and get a tax refund in subsequent years when you return.  Hopefully a non-cash loss can be declared – do you have a depreciation schedule?  If it is a newish place, you absolutely want one.  A surveyor can produce it for you.  It's worth thousands in deductions for the first few years (?10)

The block next door is available for sale – is it on the open market?  Why is it being sold?  I wonder if you could instead just get an option on it?  Then worry about exercising your right to buy it later?  Maybe a couple of thousand dollars option fee would be enough for the vendor to keep it off the open market for a while?

Otherwise, maybe try and negotiate a really long settlement?  So delay the bit where you have to pay money?

Otherwise, will the vendor consider vendor financing?  ie they loan you some or all of the money for the block in return for a high interest rate of repayment.

Do not manage it yourself.  If you end up with a tenant that requires eviction, you do not wish for them to associate your face with a bad event in their lives.  Best to keep your distance.  Let a property management company be the front line.

Not sure if this is a conflict of interest thing – but are you not the real estate agent that has posted on other threads including these: ?

https://www.propertyinvesting.com/forums/property-investing/help-needed/4330247?highlight=psaila#comment-200605

https://www.propertyinvesting.com/forums/property-investing/help-needed/4329838?highlight=psaila

A bank account would not have a chance at producing the result that many suburbs are producing…

True, though the same rule applies really

If you can afford to do so, absolutely.  Check Wyndham Council for the current regulations for Werribee and Hoppers.  Last I heard it was minimum 300m2 per dwelling.

And remember – cover your IPs with landlord insurance WITH tenant protection

Nice work getting something in Sunshine before it got expensive!

Yes I think you can purchase another property.  For the deposit you will probably have to use equity in your current property, because all of your $20k savings will be eaten up by stamp duty and solicitors fees.

Suitable areas to look at would include Werribee, Hoppers Crossing and Ballarat (Ballarat has a uni and a hospital which makes for ease of rentability, so you'd want something within suitable commute of both, and also a train station to Melbourne).

With regards to Hoppers Crossing, avoid the Birdsville Estate, which is bordered by Heaths Road, Tarneit Road, Railway Avenue and Derrimut Road.  With regards to Werribee, avoid the area north of Werribee Station bordered generally by Market Road, Shaws Road and the river.  Werribee is older than Hoppers Crossing and as such tends to offer some property that needs a bit of a cosmetic makeover (carpets, paint, perhaps a kitchen makeover) to add instant value.

While Werribee is not without its fair share of weatherboard properties, you'll probably find that the norm is brick for Werribee and Hoppers.  I don't think I'd consider weatherboard unless I was looking in an area like Ballarat, or Yarraville where it fits in with the surroundings.

Both Werribee and Hoppers have plenty of families with children in school (so be near a primary and high school, but not right across the road), and have a family member commuting to Melbourne each day for work either by rail or road.  So make sure train station and road passage is conveniently placed.

Does this give you somewhere to start hunting?