deposit bonds

Viewing 7 posts - 1 through 7 (of 7 total)

Joff
Member
@joff
Join Date: 2003
Post Count: 50
June 12, 2003 - 7:02 am
Hi all,
Can anybody please explain the use of deposit bonds.
who supplys them?
under what conditions?
how much?
are they a good idea or not?
I have the need to quickly raise the deposit on a property that has come to notice for a great (wholesale?)price, and that is not yet on the market.I have already done due diligence and am keen to jump in.
joff
Sebastian
Member
@sebastian
Join Date: 2003
Post Count: 55
June 12, 2003 - 8:32 am
Joff,
Yeah I would ask your Mortgage broker if you are using one. They can arrange a deposit bond for a percentage of the amount of the bond. They are not done through the bank but through a third party. I was going to get one for an auction (but decided not to bid in the end) The name of the company that provides the deposit bond escapes me, but I’ll have a look around and let you know if I find the name. But the easiest way is to go through the mortgage broker.
Cheers
Seb
jf
Member
@jf
Join Date: 2002
Post Count: 5
June 12, 2003 - 10:19 am
Hi Joff
I have Successfully used deposit bonds on 2 of my purchases and am about to use it a third time.
Many brokers can provide this service as do some of the major banks. How ever there are some criteria. It is like applying for a loan. you have to be able to show that you can pay the deposit when the property settles and they are reluctant to give the bond until you have finace approval. It is agood way not to tie up your money if the settlement is long.
good luck
john
Mathew
Participant
@matymathew
Join Date: 2003
Post Count: 41
June 12, 2003 - 12:33 pm
Hi Joff,
I seem to recall a website where you can apply for them or simply get some info. I believe the site was http://www.depositpower.com.au but I could be mistaken.
Cheers,
Mathew.
Sooshie
Member
@sooshie
Join Date: 2002
Post Count: 974
June 12, 2003 - 2:10 pm
Hi there,
When buying off the plan, the common trend is to use deposit bonds, so that your deposit is not tied up for 18 months etc until completion of the building project and subsiquent settlement…
It’s another way to keep your money in your pocket longer. Use the deposit bond instead of your own cash for the deposit. It costs though.
http://www.moneyst.com.au/depositbonds/about.html
It also has a deposit bond calculator at this site.
Cheers
Sooshie []
“Giving is a Blessing, receiving is the bonus”
Cocopops
Participant
@cocopops
Join Date: 2003
Post Count: 10
June 13, 2003 - 9:30 am
quote:
Hi there,
When buying off the plan, the common trend is to use deposit bonds, so that your deposit is not tied up for 18 months etc until completion of the building project and subsiquent settlement…
It’s another way to keep your money in your pocket longer. Use the deposit bond instead of your own cash for the deposit. It costs though.
http://www.moneyst.com.au/depositbonds/about.html
It also has a deposit bond calculator at this site.
Cheers
Sooshie []
“Giving is a Blessing, receiving is the bonus”
FW
Member
@fw
Join Date: 2002
Post Count: 478
June 13, 2003 - 10:47 am
There was an article on deposit bonds in the latest issue of Money Magazine.
Keep smiling
Felicity