<prompt> Human: I live in Melbourne, where I constantly see house prices inflating more and more. As i can afford approx 400 per week homeloan repayments, that makes it viable to buy a cheap townhouse is one of the developments in the relatively outer suburbs. Should I do this with the intention of selling it once house prices have increased, or try to save money faster than gentrification pushes up a potentially better investment in a better area?  <response>: general thinking is that home prices have peaked across AU, especially in Melbourne and Sydney. Theres a very good chance that prices in those markets can only go down from here. Buying now might be a bad idea. See if you can wait 5-10 years to buy. Save 200-300k in that time and you might be in a great place to buy in 2027.You might even win the economic cycle lottery by being cash rich when interest rates inevitably go up. Thats a buyers market. Thats when you should buy. 