2 excellent responses above:
1st hurdle: Restrictive to manage, sell. They also add no scope to renovate or subdivide.
2nd hurdle: Finance. These are hard to finance, and you're already short of funds. They will require higher LVR generally, as lenders know the restricted nature listed in #1.
Which bring me to my point:
Brocky05, you sound like a young bloke trying to get ahead. I recall from your other posts you have bought a regional IP which is not able to be value added and if you sold today you would lose money. Add in a PPOR as your second property and you have already backed yourself into a corner.
Unfortunately (and Im not having a real dig here), this is a common example of 'getting in' to the market for the sake of 'getting in'.
If you're going to get into this investing game, your very first property should have in your mind not the immidiate property in mind, but subsequent properties. The very first should be a foundation property that can quickly and easily get you your next one. It should have at least some sweat equity (small reno, face lift), so you can get a tenant in for a 6mth term at a good rent return with view to reval at 3-6month mark. Even better subdividable (down the track when you get more confidence and enhanced ability).
Once you pick up the next property, the next property should already be in your mind and how you are going to get there. Stonewalling yourself by only purchasing stock for the sake of purchasing takes a long time to save between deposits.....as you are finding out.
So why all the hot wind above? Well, how does purchasing a restrictive, hard to finance property fit into purchasing the next property? It doesnt.
I feel that young people with a decent income and above average drive to forward progress themselves (like yourself) should plan right from the start, be a little agressive in lending (88%+LMI) and always have the next property in their sight for renovation, subdivision or development. No need for speculating one horse ponies, or getting into OTP developments etc - just stock that gets rooves over heads and LL onto the next one. When you get confident in your ability, thats when you know its the right time to progress. I encourage you to search some of the Ali girls stuff - they are pulling this off perfectly - as have may other people on here.
In hindsight I personally have fallen short of this, however proped up with the inclusion of my business which has got myself where I am. It does seem the more function, progressive way to do things.
Foundation property/ies (to get you CG properties), moving onto CG properties (to get you deposits for cashflow properties), cashflow properties to get you the cashflow you desire (to get into any property/investment you desire).
pinkboy