Previously known as “The Property Planner, Buyer and Professor”
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Show Notes
In this episode of the Property Trio, we explore a great listener question from James, which leads to a thoughtful discussion about life stages, timing investments, and how to balance both wisely.
James and his fiancée are in their late 20s to early 30s. They’ve done well already: they bought their long-term home in Keysborough about 18 months ago for $950,000, using a 10% deposit. They’ve got around $820,000 owing on the loan, and they’re earning a strong combined income of between $230,000 and $250,000 a year. So far, so good.
But here’s the question: with a wedding on the way, a honeymoon planned, and hopes to have two children in the next five years — should they consider investing before all of that, or wait until life settles a little and they’re back to two incomes?
It’s a timely question that gets right to the heart of balancing personal goals with long-term wealth creation.
Cate introduces the concept of “runway” — the idea that the earlier you begin investing, the more time you give your assets to grow, especially when you’ve got decades ahead in your working life.
But she also cautions against overextending yourself, financially or emotionally. The key? Stress-testing your plans before diving in.
Mike commends the couple’s financial habits, noting their disciplined approach and smart questions. Whether they invest now or wait a few years, they’re already ahead of the pack for their age group.
The trio also unpacks the best way to fund a future investment.
Should James and his partner use savings from their offset account, or look to release equity?
Dave explains that borrowing against their home, if feasible, is often more tax-effective than dipping into cash reserves. However, he also flags that they may not yet have sufficient equity to avoid Lenders Mortgage Insurance (LMI) if they go down that path.
There’s no clear-cut answer and that’s what makes this discussion so valuable.
The trio agree: if the numbers work and the couple is confident in their position, investing sooner is ideal. But if they prefer to wait until after key life events and build more equity or buffers, that’s a smart move too.
From budget weddings at the registry office to lavish winery celebrations, the Trio share candid insights and practical options for listeners weighing similar decisions.
Gold Nuggets
Cate Bakos’s gold nugget: While they are young, with one property in the portfolio, now is a great time to consider investing in a property plan.
David Johnston’s gold nugget: James and his fiancee are really good with their money! Dave encourages them to keep up that habit. Good money management habits will set them up for success.
Mike Mortlock’s gold nugget: Knowing the numbers is the key to making the decision. Without the visibility, the decision is much harder to make.
Resources:
- Ep. 36 Buying the wrong property and/or the wrong location – No. 6 of the top 7 Critical Mistakes
- Ep. 191 Risk management and the things that can go wrong when mortgage strategy is ineffective
- Ep. 250 Investment Borrowing Masterclass – Maximise Tax Deductions and Advanced Mortgage Strategies for Long-Term Wealth Creation
- Ep. 281 Mastering Accessing Equity: Loan to Value Ratio Strategy, Risks, Benefits & Hidden Opportunities that Shape Your Mortgage Strategy
- Ep. 306 How to Increase Borrowing Power – How Kids, Rate Cuts and Variable Income Impact Property Buying Potential, Equity Access & Refinance
