I live in sydney western suburbs and have never had a problem. Just depends what sort of street you're in, there are some bad ones here and some good ones like mine. I doubt melb's western suburbs are any worse than here.
As for getting out then coming back.. yeah i know. prices will rise here whilst Im gone but Im hoping by buying cheap elsewhere i'll be able to save. And i plan for my income to increase substantially whilst Im living away from everything that distracts me here
I was looking at Your Mortgage magazine today and they had an article about some of the cheapest suburbs in Melb (no mention of what they're like though).
This is whats listed:
Melton - median price only 185k! Looked on domain and found some decent looking homes there.
Deer Park
St Albans - whats bad about this place? Seems to get a bad wrap? Is it like Bankstown in Sydney? If so i'll give it a miss, otherwise could be ok?
Broadmeadows
Cranbourne
Sunshine West
Werribee
Rosebud
Carrum Downs
Rye
Most of the above were showing growth over the past 12 months and all had average annual growth of over 8%.
I've increased my budget to 240k max as well. I'll get a better home for that price and its not a huge difference in repayments from 200k.
I've been looking at Adelaide as well but Melb seems to be the better choice (though i do like Adelaide) as far as return on investment when it comes time to sell.