First, do not rush the irreversible decisions
Before you commit to a build or a purchase, make sure the settlement, your borrowing capacity and your deposit are settled enough to act on. A build is an 18-to-30-month commitment; renting for 6 to 12 months while things stabilise is often the smarter first move, not a failure.
- Confirm your single-income borrowing capacity with a broker before you fall in love with anything.
- Understand what the property settlement actually leaves you as a deposit.
- Factor in the kids: school zones, the other parent's location, and how shared care affects how many bedrooms you really need.
Your realistic options
- Buy an established smaller home or townhouse - fastest and simplest while life settles.
- New townhouse or house in a growth corridor - the most home for a single-income budget, often with first-home help if you now qualify.
- Small new build on an affordable block - full control and a fresh start, if your timeline allows.
- Rentvest - rent where you need to be for the kids and schools, buy an investment where the numbers work, until your position is stronger.
Real Melbourne numbers (2026)
General market observations as of mid-2026, not quotes.
New 3-bed townhouse (growth corridor): land plus build from the mid $500k range in the most affordable corridors.
Small new 3-bed home on an affordable block: land $330k to $520k, build $420k to $650k.
Established smaller home or townhouse (middle ring): $620k to $1.1M depending on suburb and condition.
If this is your first home in your own name again, you may qualify for the $10,000 Victorian First Home Owner Grant on a new home up to $750,000, plus stamp-duty relief up to $750,000. Eligibility depends on prior ownership - check with the State Revenue Office.
Mistakes we see after separation
- Buying or building too far out to save money, then burning it all on commuting and losing time with the kids.
- Over-committing to a build timeline before the settlement is final.
- Choosing a home with too few bedrooms for shared-care weekends.
- Forgetting that a single-income loan changes which suburbs are realistic - the broker conversation comes first.