#315: The Family Home Puzzle - Balancing Budget, Space, School Zones & Selling Properties to Upgrade

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🎙️ In today’s episode, the Trio dive in to a relatable listener question from Josephine, who’s navigating the next big step in her property journey with her partner. With a growing family and high school on the horizon for their son, Josephine is asking the question — should they stretch and buy a small two-bedroom unit in a coveted school zone now, or wait and hope to afford something bigger later? 

🏠🎓 Josephine and her partner already own a freestanding 3-bedroom, 2-bathroom house, but it’s not in the ideal school catchments they’re now targeting. Their borrowing capacity maxes out at around $650,000 — a budget that’s making it hard to secure the kind of property they want in either of the Secondary school zones they have earmarked in Melbourne. 

🤯 👩‍💼 Cate kicks off the discussion with an honest assessment: $650,000 is a tight stretch for a two-bedroom unit in these high-demand areas. Explaining the the pressure buyers face when chasing school zones and the compromises required, Cate covers a common dilemma.

🧠 Dave then lays out four clear options for Josephine and her family:

1. Compromise and buy an apartment in the school zone now.
2. Sell their current home and upgrade to a family home in the school catchment.
3. Wait it out, grow their incomes, and buy bigger in a few years.
4. Ignore school zones for now, and invest where the budget stretches further.

🎯 Dave shares which of these options he believes offers the strongest long-term strategic value — balancing lifestyle goals with financial fundamentals. 

🔍 Cate takes a deeper look at that fourth option, where lifestyle is deferred but capital growth and investment strategy take the lead. Highlighting this common dilemma when it comes to school zones, Cate unpacks the challenges associated with capital growth and cashflow.

🏫 The Trio then open up a broader conversation around school zones — the power they wield over price, the risks of overextending, and how buying in the “right” zone doesn’t always guarantee the ideal outcome for families.

🏘️ If Josephine and her partner do manage to secure a modest property within zone, Cate explores the real challenges they’ll face in terms of space, liveability, and the very real risk of outgrowing the property too soon.

💸 Dave breaks down the pros and cons of selling the existing home to upgrade. While it may open doors in the school zone, there are emotional and financial costs — including stamp duty, agent fees, and timing the market well.

🛠️ In this ep, the Trio share a tactical guide to navigating the tricky process of buying and selling at the same time, offering clear tips for developing a sharp purchase strategy and preparing emotionally and practically.

💼 And Dave wraps with mortgage considerations — from bridging finance to loan portability — offering practical insights to reduce friction and risk in the finance process.

And our gold nuggets!.....

Cate Bakos's gold nugget: got so much right with their structuring and decision making when they bought their first property, but one thing Cate wishes they considered was schooling and desired zones. Schooling is a big part of a property plan.

David Johnston's gold nugget: "We landed at the same point, Cate." Everyone who hasn't set a property plan yet should be asking themselves these questions ahead of time. 

Mike Mortlock's gold nugget: "Anything that doesn't result in two sales is a win!" 

Show notes: https://www.propertytrio.com.au/2025/06/23/the-school-zone-family-home-puzzle/