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.
Evaluating townhouse growth potential
Alex is concerned that his townhouses might not match the capital growth of freestanding homes.
The Trio breaks down how to judge the true quality and location strength of each property — because not all townhouses perform equally.
They share what sets strong assets apart, why some outperform others, and how a well-considered “hold” strategy can often deliver greater long-term gains than selling too soon.
Crunching 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
The Trio models five possible paths for Alex — from keeping both properties and staying the course, to selling one or both, or even moving into one temporarily.
They reveal how each choice affects borrowing capacity, lifestyle flexibility, and future wealth creation, helping Alex weigh short-term comfort against long-term opportunity.
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
