Previously known as “The Property Planner, Buyer and Professor”
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Show Notes – Buying your first home after investing
This week, the Trio tackle a fantastic listener question from Alex, who, along with his partner, has done an incredible job kickstarting their property journey early, but now they face a common crossroads.
The Investment vs Family Home Dilemma
With two investment loans already on the books and rising property prices in Melbourne, their borrowing capacity for a family home feels stretched thin.
They’re unsure whether to hold, sell, move in or pivot entirely.
Alex’s Story
At just 28, Alex and his partner have built an impressive portfolio of two investment properties (townhouses) in Melbourne’s north: one in Reservoir and one in Pascoe Vale.
Both are on solid incomes and have managed their expenses well while still living at home.
However, now they’re thinking about the next life stage, marriage, a family and their own place to call home.
Planning Ahead for the Next Property Move
When you’re looking to transition from investor to owner-occupier, planning ahead is critical.
The Trio discusses how cash flow, borrowing capacity and upcoming lifestyle changes (such as dropping to one income when kids arrive) must all feed into a forward-looking property plan.
They also highlight the value of scenario modelling to stress test each option before taking action.
Understanding the Capital Growth Potential of Townhouses
Alex worries that his townhouses won’t keep pace with freestanding homes in terms of growth.
The Trio explores how to assess the quality and location of existing assets, because not all townhouses are created equal.
They explain what makes some outperform others and why strategic “hold” decisions can sometimes deliver better long-term results than reactive selling.
Running the Numbers
We unpack the five key scenarios Alex could consider, from keeping both investments and waiting, to selling one or both, or even moving into one temporarily.
The Trio walks listeners through how borrowing capacity shifts with each scenario and the trade-offs between short-term comfort and long-term wealth creation.
Strategy Before Action
It’s easy to get caught up in the excitement of buying property without thinking through how each purchase impacts your next goal.
The Trio emphasises that clarity around timelines, lifestyle priorities, and risk tolerance is the foundation of smart decision-making.
Gold Nuggets
Dave Johnston’s gold nugget: The benefits of a long term, well thought out family home go beyond just lifestyle and happiness. From tax considerations to the benefits of a longer tenure, Dave puts up a compelling option.
Cate Bakos’s gold nugget: Cate gives some good advice to those who are considering rent-vesting. “Be very clear about when you want your family home.”
Mike Mortlock’s gold nugget: Mike talks about the elephant in the room; the differential between the performance of the townhouses and a family home.
Resources:
- Ep. 5: The lifestyle vs Investment conundrum
- Ep. 33: Starting without a plan and end goal – No.3 of the top 7 Critical Mistakes
- Ep. 37: Needing to sell property too soon – No. 7 of the top 7 Critical Mistakes
- Ep. 298: Is Melbourne’s Property Market About to Turn? A Data-Driven Look at What’s Next
- Ep. 313: The History of Property Prices After Rate Cuts – 40 Years of Data, Houses vs Units, Capitals vs Regions & Predictions
