Owners of condemned Sydney unit dealt another blow amid rising interest rates

"Broken" Mascot Towers apartment owners who've been slugged paying interest on a $15 million loan to repair their condemned building have been dealt another blow today, when the Reserve Bank of Australia (RBA) increased its interest rates.

Unit owners told A Current Affair they're facing financial ruin as the cash rate hike on mortgages rose by another 0.25 per cent today.

Their interest payments on the loan make up the bulk of the strata fees they continue to pay for their dud units, some as high as $8500 per quarter.

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"We've got no solution to it. You either go bankrupt or you pay it," Sydney retiree Cliff told A Current Affair after the news the cash rate had gone up to 3.35 per cent.

Cliff and his wife Veronica are amongst 133 apartment owners who say they feel let down by the New South Wales government four years after the Mascot Towers development disaster, and they're calling for some relief.

They and other Mascot Towers residents were evacuated in June 2019, following fears the building could collapse when the construction of an apartment block next door caused the support structure to crack.

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Cliff and Veronica paid $1.1 million upfront for their three-bedroom apartment with city views in 2008.

Although their apartment was valued at $2.2 million just weeks before the evacuation, the building, which is now held up by props, has basically been left worthless after it was condemned.

They agreed to take out a loan to fix the building, along with the majority of other apartment owners.

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But the matter has been tied up in the courts and in the interim, banks involved continue to slug many owners' monthly mortgage payments.

Apartment owners Derek and Rachael said they've become desperate as their strata fees sit around $5000 a quarter.

"If the interest rates keep going up, we can't survive," Derek said.

"We desperately need help," Rachel said.

While Mascot Towers owners did manage to get around $4.5 million from the developer's insurance company, estimates to repair the entire building are upwards of $60 million.

The state government has been paying owners rental assistance for accommodation elsewhere, but that package ends in June.

Last year, the NSW government collected more than $12 billion in stamp duty from land sales.

But now, owners like Cliff and Veronica are asking why that money can't be used to compensate them for their original purchase price.

NSW Treasurer Matt Kean told A Current Affair the issue was in the hands of his colleague, Fair Trading Minister Victor Dominello.

Dominello told A Current Affair in a statement that the NSW government is committed to working with owners and that "support is ongoing".

Statement by NSW Minister for Customer Service and Digital Government, Small Business, and Fair Trading Victor Dominello

I acknowledge the stress and uncertainty that the residents of Mascot Towers continue to face.

To date, NSW government has provided over $16 million in rental assistance payments to residents. That support is ongoing.

Last week, I met with a number of residents, who provided me with an update on their situation.

The NSW government is committed to working with the owners and other interested parties to resolve this challenging situation.