Why
do people purchase Deposit Bonds?
Cash
for the 10%, or even 5%, deposit required to enter into
a contract on another property is often tied up in the
current home or other investments or you may want to
finance the entire loan amount. Covering a deposit can
mean either expensive bridging finance or other borrowing.
Regardless of where the finance is obtained, interest
charges, establishment fees and other up-front costs
connected with the loan can be expensive and time-consuming
to arrange. In summary you would typically use deposit
bonds for a number of reasons:
• Your savings remain intact
• You can avoid the expense and time delays involved
in bridging finance
• You can purchase "off the plan" residential
properties, which typically have longer settlement times
• You can use a deposit bond at auction
• Deposit bonds are generally available for anywhere
up to four years
Who
accepts Deposit Bonds?
Most vendors and agents will accept a deposit bond,
but it is the sole discretion of the vendor as to whether
they accept them or not. You definitely need to check
and you need prior consent to use them at auction. Once
approved, deposit bonds can usually be organised within
24 hours.
When does the Deposit Bond expire?
The deposit bond ceases when the contract of sale is
completed, terminated, rescinded or the expiry date
occurs, whichever happens first. Typically you would
pay the vendor the full purchase price of the property,
including the deposit.
Contact
us today for a free consultation.
|
