ERROL PARKER | Editor-at-large | Contact
Local man Chris Dunlop explained to The Advocate that the Reserve Bank of Australia (RBA) has left him with no choice but to sell his five-bedroom, two-bathroom Hotondo tent in Betoota Heights, following a series of interest rate hikes.
The 34-year-old local government worker borrowed as much as he could when rates were at historic lows, says he is now being unfairly punished by the central bank’s decision to raise rates.
Dunlop’s deposit came from his parents, who peeled $200,000 in equity from their own home to help him secure the loan. With that backing, he took out a 80% loan and financed a used 2016 Toyota Landcruiser Prado, confident the politicians’ reassurances that rates would stay low were solid.
However, after 14 consecutive rate increases, he’s facing the harsh reality of his financial situation.
“I wasn’t over-leveraged. The RBA just changed the rules. It was easy for me to service these loans when the interest rates were low. Now, it’s almost impossible. In other countries, they have fixed rates for the life of the mortgage. Not on this backwards island,” Dunlop said.
Despite countless warnings from economists and financial experts, Dunlop maintains that he was misled into thinking the good times would last forever. While maintaining his lavish lifestyle—which included regular trips to the coast, going his groceries at Harris Farm, and frequent haircuts — Dunlop now finds himself struggling to meet mortgage payments.
“The RBA should’ve done more to stop people like me from borrowing so much,” he said.
“They’re making me pay for their bad decisions. I know they have to fight inflation but why do they have to hurt us when the true cause of this inflation nightmare is corporate profiteering, needless government expenditure and old people spending frivolously in the economy. And so the Boomers should. It’s their money, spend away, who cares. I benefit heavily from the spending of Baby Boomers, actually.”
With his parents continuing to prop up his lifestyle, Dunlop refuses to take responsibility for his actions, insisting that the RBA has unfairly shattered his dreams of homeownership.
“Albo wouldn’t have done this to me, it’s all the RBA’s fault.” he said.
More to come.
