Weekly Slice 284: May RATE RISE! Borrowing power drop… Investors get ready - with Max Phelps and Todd Sloan

In this episode of Pizza and Property, hosts Todd Sloan and Max Phelps dive into the latest interest rate rise and its cascading effects on borrowing power, property affordability, and investor strategy. With rates increasing for the third time this year, borrowing capacity has dropped by $75,000 since January—especially impactful in overpriced markets like Sydney, where property prices remain detached from reality. The hosts emphasize the significant time lags in the financial system: banks take weeks to adjust rates, repayments only increase after a full month, and inflation data reflects past behavior, not current conditions. This creates a risk of overcorrection by the RBA. Despite the stress, the hosts argue that this environment presents opportunities in overlooked, affordable pockets with strong yields, particularly in cities like Melbourne and Geelong, where demand is still accessible and growth potential remains. Max Phelps shares his optimism, linking financial stress to deeper life fulfillment through relationships and purpose, while urging investors to act now with precision and preparation. The episode underscores that while rising rates are painful, they’re also a signal to reassess strategy. Investors should focus on yield, affordability, and location with greater care. The hosts highlight that the market isn’t moving uniformly—some segments are seeing price growth, especially in lower-priced, high-yield areas. They recommend leveraging expert advice from mortgage brokers and buyer’s agencies like InvestorKit and the Property Developer Network to stay ahead. Ultimately, the message is clear: fear drives panic, but preparation and action create opportunity. With the right planning, investors can position themselves to thrive in the next phase of the property cycle.