_{1.06 – Mike kicks off the episode}

_{4.25 – What is the biggest challenge with our listener’s strategy?}

_{6.42 – Dave outlines the four options from a property planning point of view}

_{9.42 – The conundrum isn’t easy for our listener, but what is Dave’s preferred option?}

_{13.36 – If we forget about the school zone, what are the upsides? Cate talks about the school zone cost-benefit analysis}

_{19.20 – The Trio ponder the downsides of the plan if Josephine targets the school zone with a unit purchase}

_{22.45 – Dave takes listeners through the financial and lifestyle perspectives of each decision that faces Josephine and her family}

_{27.57 – The tactical decisions required when buying and selling at the same time}

_{38.03 – Gold Nuggets!}

---

🎙️ 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 uncovers 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!”

…. and our gold nuggets!

Related episodes:

Ep. 22           Why the family home is often the biggest piece of the investment puzzle

Ep. 128        Upgrading and planning for the long-term home: how to keep a home as an investment, buying or selling first and more.

Ep. 143        Property Planning Case Study #1 – What’s our next move? Renovate our home and invest, sell the home and upgrade, or upgrade and convert the home into an investment

Ep. 267        Crafting a Winning Property Strategy – Navigating Asset Selection, Growth vs Cash Flow & Changing Property Purpose

Ep. 228        All Things Apartments & Units Part 1 – From Boutique to High-Rise, Uncovering Opportunity, Oversupply & Lender Restrictions

Ep. 229        All Things Apartment & Units Part 2 – Secrets to Selection Success, Finding Capital Growth, Land to Asset Ratios & Other Expert Tips

Upcoming ep: #316 – How Long Does It Take to Double Your Property’s Value? Busting the Myth & How Rates, Supply & Market Fragmentation Changed the Game

Resources:

The school zone surcharge

https://www.catebakos.com.au/staging/wp-content/uploads/2014/07/API-Magazine-June14-Schools-out.pdf

Making a move across town