i sent you a PM

Is there a reason you've limited your thoughts to Melbourne?  Using Steve McKnight's history as an example (refer the right side of this screen that has a pic of his book "0 to 130 properties in 3.5 years") he deliberately got started in Ballarat in order to get positive cashflow.

And in answer to your question, no, not really. Not everyone can just race out and buy property any more.  The bank actually expects you to have a deposit or equity, and an income that will enable you to repay the mortgage.

Awesome – thanks British Buyer.  Who is this agent you speak of?

Has anyone out used a buyers agent (or whatever the U.S. equivalent is) to purchase U.S. property?  I suspect it would be more cost efficient for me to pay for such a service than to fork out for airfares, time hunting for property etc myself.  I'd love to hear if anyone has some feedback!

I think the best idea is to buy a place and live in it.  Renovate when you can, and then if you should happen to sell, it will be CGT free.  Remember though that when you sell property, you've effectively flushed money down the toilet that was spent on stamp duty… because you simply have to pay stamp duty again to reinvest elsewhere.  Better to wait for equity growth and then borrow against the home to buy an IP.

Sounds to me like you know full well you'll have your backs to the wall if you go with the "all eggs in one basket" strategy (the 1.2mill property).

Remember that negative gearing still involves making a loss.  It shouldn't be your reason for purchasing.

Why not get 2 x $400k properties right away?

Have you looked into starting a SMSF (self managed super fund) and using it to buy property?  It might turn out to be a much better tax-saving strategy if you're in a top tax bracket….  there are a number of threads on this forum about it

The rental return figure is also misleading.  The return will depend on the location of the grannyflat.

Infrastructure is good.  If the government is going to make it easier for residents of a township to get to work and so on more efficiently with major roads and train lines, that is good.  Of course, you don't want your property bang next to the freeway listening to loud trucks all the time.

The only time people get upset about new roads is when they are a small cutesy holiday township and they worry the quaintness will be ruined when trucks start travelling on a nearby route.

Think about what YOU would require nearby to a house if you were going to live in it for a while.  Would life be convenient without nearby roads, rail lines, schools and shops?  I doubt it.

Keep in mind that let's say you have to give the existing tenant 60 days notice, there might be little point in showing new tenants through that early.  Ask some local agents how quickly tenants in the area are aiming to move in.  If it is "I have to be able to move in within 3 weeks…." then showing people through 60 days in advance might be pointless.