The Owner-Occupier vs. Investor Dilemma – Navigating Purchase Strategy, Affordability, Asset Selection & Loan Approval (Ep. 252)

Previously known as “The Property Planner, Buyer and Professor”

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Episode Highlights

1.27 – Mike introduces Sally’s questions

6.56 – Villa units…. what are they?

10.40 – There’s apartments, and then there’s *apartments*

18.03 – The Trio talk about some of the underperforming, flimsy townhouses out there that need to be avoided.

24.18 – Teaser for next week’s episode… The March monthly update

39.19 – Gold Nuggets


Show notes

Sally is about to purchase her first home. She has a deposit of $300K and is targeting a purchase price of $700K – $800K. Sally wants to live in the home, but is feeling that her borrowing capacity as an owner occupier is holding her back. She asks the Trio whether she should initially purchase as an investor in order to borrow more. Dave breaks down Sally’s initial strategy with a few clever questions.

Sally is targeting Melbourne and she works in town. She is thinking of living in it for 5-10 years, and then upgrading to a larger family home when the time comes, keeping this initial property as an investment. Five to ten years is a long time though, and Sally is keen to find a property that will be adequate for her for a 5-10 year period. Cate has some thought-provoking ideas for Sally to consider. Cate also talks about tenure, and the importance of buyers making sure they have at least five years of tenure in their plan.

Sally has indeed stated that she has done some homework and she’s identified that 2BR townhouses and villa units might be the ideal purchase. Cate demystifies villa units and recalls the conversations she had in previous eps with Pete about dwelling description variations around the nation.

Sally has made a deliberate decision to avoid apartments. But.. not all apartments are equal.

“There’s apartments, and then there are apartments”.

Which are the variety that Cate thinks are absolute out-performers? Tune in to find out.

Given townhouses aren’t all equal, the Trio unpack the various types of townhouses.

Sally notes that the market conditions have changed a bit over the last couple of years in Melbourne. How can Sally best navigate the Melbourne market over the coming months?

Sally circles back to her original suggestion about getting an investment loan for a property that she wants to live in. But as you’ll explain Dave, it’s not that easy.  How do the banks regulate this?

Lastly, Sally is unclear on whether she gets the stamp duty benefits if it’s an investment loan. Dave sheds light on some great tips for our loyal listener.


Gold Nuggets:

Cate Bakos’s gold nugget: Sally can use the ‘sold’ tab on the property search engine to get a great peg in the sand.

Dave Johnston’s gold nugget: “Make sure you can purchase a property that you can see yourself living in for 5-7, even 10 years. Can you get a better quality asset in a better location, even if it means forgoing stamp duty savings?”

Mike Mortlock’s gold nugget: Mike congratulates Sally for saving $300,000 for a deposit, and he assures Sally not to worry about Melbourne’s slow performance.



  • 14 – How to choose a location for investment – what to look for and what to avoid
  • 16 – Unpacking Land to Asset Ratio
  • 37 – Needing to sell property too soon – No. 7 of the top 7 Critical Mistakes
  • 169 – Houses vs Units – Capital growth performance in capital cities and regions over the last 20 years and which locations have units outperformed houses and why?
  • 228 and 229 – All things apartments and units – part 1 and 2

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