[kai]

Hey people,
First off, this site is fantastic, has provided me with hours of reading and learning material.

I?m a complete newbie to property investment but after reading a couple of books on the subject, can't wait to get started. However, I don?t want to get caught out and have a couple of questions for the experts.

I'm 32 with an income of $40,000/year and I have a $300,000 home with around $160,000 in equity, plus another $20,000 cash. As my wife is pregnant and doesn?t work, I can?t really afford to put too much money into the mortgage repayments of any IP for probably another 4 years or so. Here in Napier/Hastings there seem to be quite a few places under $150,000 for sale, probably not too flash though.

My way of thinking is to leave it for a few years when I have more money coming in, more equity in my house and can afford perhaps a better standard of house when my wife goes back to work. But at the same time I really want to get started now with something little and appreciate the capital gains and use that as a stepping-stone to the next property.

So, am I better off to buy a cheap place in a not so good area (but all I can afford) with all my money now. Or wait when its not so risky, buy a better place in 4-5 years that?s going to cost more and miss out on capital gains.

Thanks in advance