Hi all, My wife and I are expecting our first baby at the EOFY and need your advice! Current position; We have an IP each and are renting a home in Baulkham Hills (2153). IP's; 1. 2bd unit in Homebush West (2140) and 2. 2bd unit in Croydon (2132). We are looking at selling Homebush West to purchase a PPOR. A sale of $390K will give us borrowing power of about $700K (no LMI). I would prefer a property closer to the CBD, ie. Abbotsford/Five Dock (2046), Drummoyne (2047) and my wife would prefer a home in the Hills, ie. Baulkham Hills, Winston Hills, North Rocks. Given our forecasted borrowing power, a purchase in the Hills would be fine, given alot of stock on the market in the $550-700K bracket, however a purchase closer in would restrict our options to a unit/townhouse. My thoughts with a purchase of a unit/townhouse in the 2046-2047 areas, is that when the time comes to live in a larger property the PPOR could become an IP and hopefully CG will provide enough equity to fund the next purchase. Any advice on our current 'discussion' topic would be appreciated, Ta!