Well, he is being honest with you...saying that he still loves her, not you, and that you should feel threatened by her. That, along with him wanting her to live on your property, and talking about her nonstop are big red flags.

You may be very important to him, but by his own words and actions, he is telling you up front that your relationship with him is probably not permanent.

Agree that you should take a break and move out. How he responds to that will tell you a lot.