Hi All, Hoping I can use the expertise of this forum to shed some light our way... We are buying our first home with investment in mind. Ideally we need 3 bedrooms but wouldn't mind on a 2 bed house with potential to add a 3rd. We don't want to have a huge mortgage as next year we will be starting a family and want to have a buffer. We don't want to go to far from the city and our suburb range is from Zetland through to Petersham, Leichhardt and now we are also considering Earlwood and Botany. At present we have a good deposit of $120K and have been looking for apartments in the 500 to 550k mark and houses up to $680 (for 3 bed). Anyway, we are very confused about two properties and I am hoping someone here can shed some light. 3 bed apartment in Botany, close to Eastgardens, for early 500's. The apartment is nice and suits our needs for the moment. Only one window faces the rail line, but there isn't much noise at all. The strata is $950 a quarter. 2 Bed terrace in leichhardt, for auction, and I believe it would sell for around $680K based on past sales in the area. (land area is 195sqm). It also suit our needs for the moment, although we would need to make an extra loo straight away and eventually add a bedroom, renovate kitchen, bathroom, etc. It certainly has potential for improvement. But the price difference is great and will mean a bug difference in repayments - We can afford both, but certainly would be more comfortable paying less. Question is, from an investment point of view, which suburb / property is more likely to return better capital growth? Sometimes I think that Leichhardt is overpriced and Botany may still develop a lot more in the near future, increasing growth. However we can add value to the Leichhardt property, and the unit in Botany will never change, Any thoughts please?