Dax Stanley expects Sydney and Melbourne property prices to drop 5-15% over the next three to seven years. He recommends refinancing now at 80% LVR to pull equity into an offset account, giving you cash ready to buy when prices fall.
Chapters
Are you worried about property prices dropping in Sydney and Melbourne? You should be. Hi, I'm Dax Stanley. I help members and people of the public debunk all these issues around property and property investing. And I thought I'd jump on today because, you know, between you and I, Melbourne and Sydney have skyrocketed over the last two years. There's some things you need to worry about. Very clear on what you should be doing now because, you know, there's a common misconception that Sydney and Melbourne markets always go up. Well, that's not the case. We've seen drops in certain suburbs. We've seen drops of 5 to 15% in previous, you know, bust cycles. Yes, some property suburbs just keep going up and up and up, but some don't. You own property in Sydney and Melbourne or Melbourne, you really should be doing these things to make sure that it sets you up over the next three to seven years to make sure you can keep investing, buying some bargains that are going to be on the market and really win over these next couple of years. So I thought I'd start. If you've bought in Melbourne in the last two years or even the past year, you've made a lot of money. You know, it's been fantastic. Congratulations on doing that. And it really is a great thing to have a massive amount of equity in your property. The downside of that, if you aren't converting that equity into cash right now, you could be losing some of that equity. But we want to have access to that equity now. The best time to access that equity is when it's at the top of the market. Okay. And we're around that now. Okay. So the idea is to get your portfolio valued right now, ring up your broker, contact me, and really go, okay. I want to really maximize my, my cash out and make sure that I'm getting the most amount of money out of my property. What my suggestion is, is to put that into an offset account off the home loan. Okay. And sit it there ready for the next investment. It's not costing you anything because you're leveraging up to 80% LVR, but you're taking that out and you're putting it back in an offset account. Okay? Now, what that means for you in the long term, if there is a dip, if there is a crash, if there's a 5 to 15% drop in your suburb, you've still got that money. You haven't lost it. Okay. And it's really valuable for when you're going to go and invest again. To have that maximum equity because, you know, in previous flattening cycles in Sydney and Melbourne, it lasts anywhere between three and seven years. So to have the maximum amount of cash available for your next investment property ready or when there's distressed sellers, when the market, you know, dipping in certain areas, when there's hot markets that we're suggesting every month, we're finding at least 8 to 12 suburbs Australia wide that are starting to boom or in a boom. So you want to be ready to have that cash available to invest now. Okay. So I hope that's helped. If this makes sense, comment below, reach out to me and we can definitely help you. At the least, go back to your broker and say, I want to refinance for an investment property and I want to pull out as much equity as I can into cash and put it in your offset account. All the best. Cheers.
