The Sydney Dilemma: Buy an apartment or rentvest

So this appears to be a common thing now. A single or couple in their 20s, renting in Sydney, working in Sydney, faced with a choice:

• Buy an apartment in Sydney; OR
• Continue to rent and purchase a house interstate (Brisbane, Adelaide, Perth) to use as an investment property (eg so that one day you can sell and buy your own PPOR).

What are your thoughts on this?

Fundamentally, I think that a lot of off-the-plan apartments are terrible. Your PPOR, whether you like it or not, is an investment. You could be hundreds of thousands of dollars better off.

The "rentvesting model" (ie renting whilst investing) in my opinion places you in a significantly better position. It is a short-term sacrifice for a long-term gain. Sydney house prices may be insane, but if you are able to buy some nice assets that appreciate over a 10-15 time window, you are in a better position than if you buy an apartment which has limited growth prospects (especially off-the-plan ones which are usually overpriced, have shoddy workmanship and are high in supply).

It is land that appreciates. Buildings depreciate. This is accepted wisdom and it has held true since the beginning of property investing.

What are your thoughts on this? Is it even a dilemma or are you more fixed in your thinking?