A record level of homelessness will happen if the Reserve Bank increases interest rates

One of Australia's largest property investment groups which has previously donated $1 million to the Red Cross to help the homeless, says there will be a tidal wave of new homeless in Australia if the Reserve Bank increases interest rates again at its Board meeting.

Kevin Young, the owner of the Australia-wide Property Club, says that in 40 years in the property sector he has never experienced the current level of anxiety from renters who fear being unable to afford their rent and being tossed out on the street.

He will now budget to spend $ 1 million to set up a new political party to give property owners and renters a say.

"I donated $1 million to the Red Cross over 10 years ago to help the homeless when the Global Financial Crisis hit. It was bad then but it is set to get a whole lot worse if interest rates go up again. on Tuesday.

"I have never seen anything like it. I talk to renters every day and the level of fear out there about not being able to pay rent is the worst I have seen in 40 years."

Mr Young said he now intended to set up his own political party, the Owners and Renters party "so that someone can be the voice of the property sector and tell the Reserve Bank and the Australian Prudential Regulation Authority (APRA) that they are ruining this country."

“In 2008 the RBA set about raising rates from 3% to near 5% encouraged by the financial sector.

“It took price inflation from 2% to 5%. The Property Club campaigned monthly outside each RBA state office calling for 2.25%. And we were right, rates dropped.

“Will raising rates work differently this time? Will it reduce demand...the answer is no.

Mr Young said that after assuring Australians a year ago that interest rates would not rise, Mr Lowe had panicked and had taken a big stick to interest rates rises with little regard as to how it impacted on Mum and Dad Australians.

"I am going to spend $400,000 of my own money - and up to $ 1 million if necessary -- to launch a new political party to stand up to the likes of Mr. Lowe who think they have a feel for the property market.

"If there is another significant interest rate rise on Tuesday, you are going to see a level of homelessness never before experienced in Australia."