I am currently in the market for my first home with a budget of $350k
My intention is to occupy it for the first 6-12 months to avoid capital gains, then consider my next step once the time has passed.
I am tossing up between a few suburbs at the moment and it has become clear that certain suburbs yield certain types of growth results:
St Kilda - Tenanted very quickly with the highest yield (will only be able to afford a 1 or 2 br apartment) - Comparatively slow capital growth
Chelsea (bayside) - Steady capital growth with average yield. Many subdivisions have already been completed in this area leaving only small units with no option of larger parcels of land
Pakenham/Cranbourne area - With the Melbourne CBD slowly expanding, these are the next 2 major developments in my area currently underway. For my price range I can purchase a 600 sqm home with 3-4 bedrooms. This will give me average yield with a slower capital growth which will take several years to realise.
At the end of the day, I am looking for some help in determining which of these strategies would best suit me considering the following:
Thanks for reading and I'm looking forward to any help I can get...
My intention is to occupy it for the first 6-12 months to avoid capital gains, then consider my next step once the time has passed.
I am tossing up between a few suburbs at the moment and it has become clear that certain suburbs yield certain types of growth results:
St Kilda - Tenanted very quickly with the highest yield (will only be able to afford a 1 or 2 br apartment) - Comparatively slow capital growth
Chelsea (bayside) - Steady capital growth with average yield. Many subdivisions have already been completed in this area leaving only small units with no option of larger parcels of land
Pakenham/Cranbourne area - With the Melbourne CBD slowly expanding, these are the next 2 major developments in my area currently underway. For my price range I can purchase a 600 sqm home with 3-4 bedrooms. This will give me average yield with a slower capital growth which will take several years to realise.
At the end of the day, I am looking for some help in determining which of these strategies would best suit me considering the following:
- This is my first home
- St Kilda / Chelsea would mean that I am buying a home that I am only living in for 6-12 months whilst Pakenham / Cranbourne would mean that I am buying a home to live in for a long time
- I am unsure of what should take precedence in such an uncertain market - Yield vs Capital Growth
Thanks for reading and I'm looking forward to any help I can get...