Andrew and Amanda are a young couple I helped through the experience of buying an investment property.
They asked me to go with them to see a property at Helensburgh, just south of Sydney, which they really liked but were undecided as to whether it was a good deal.
Although it was a fairly new home there were many things demographically wrong and the eventual rent would have been much lower than their mortgage repayments.
They were looking for somewhere they could live in but rent out in a few years when their family outgrew the house. They were both working in the City and they also had a toddler. I pointed out to them that it was a very long commute to the city and neither day care nor the railway station was conveniently located.
They needed someone to take the emotion out of the situation.
I suggested they look at Holsworthy where, at the time, there was an over-supply of low cost housing. There was also a lot of new development in that area. They bought a small 3 bedroom place which was an easy commute to the City with shops, medical centre and pre-schools within walking distance.
They now have 2 young children and have recently moved to a 5 bedroom house. Their 2 rental properties are a very solid start to a portfolio which should see them in good stead during their retirement.