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🎙️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 faces a common crossroads. 🏡💭 


 💬 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 are thinking about the next life stage; marriage, a family, and their own place to call home. Their 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.

Mike hosts this exciting episode, and Dave and Cate enjoy sharing some of their data and considerations.   

🏠 Dave unpacks the starting point:
When you’re looking to transition from investor to owner-occupier, planning ahead is critical. Dave 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 financial plan. He also highlights the value of scenario modelling to stress test each option before taking action. 📈 Cate dives into the townhouse question:
Alex worries that his townhouses won’t keep pace with freestanding homes in terms of growth. Cate explores how to assess the quality and location of existing assets. Not all townhouses are created equal. She explains what makes some outperform others, and why strategic "hold" decisions can sometimes deliver better long-term results than reactive selling.

💡 Dave runs the numbers:
Dave breaks down the five key scenarios Alex could consider, from keeping both investments and waiting, to selling one or both, or even moving into one temporarily. He walks listeners through how borrowing capacity shifts with each scenario and the trade-offs between short-term comfort and long-term wealth creation.

🧭 Big takeaways:
This conversation is a powerful reminder that strategy must come before action. As Dave notes, it’s easy to get caught up in the excitement of buying property without thinking through how each purchase impacts your next goal. Cate adds that clarity around timelines, lifestyle priorities, and risk tolerance is the foundation of smart decision-making. Whether you’re in Alex’s shoes or planning ahead for your next chapter, this episode is packed with valuable insights on balancing life goals with property ambitions.

And our 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.

Shownotes: https://www.propertytrio.com.au/2025/10/13/property-planning-dilemmas/