We help buyers across Australia and New Zealand secure property with the right Deposit Bond offering choice from a trusted panel of providers so you get the best fit for your purchase, not a one-size-fits-all solution.
Why do Investors choose a Deposit Bond?
Buying an investment property requires extensive due diligence, asset selection and number crunching. Paying a deposit on exchange can sometimes be problematic to an investor securing the property, for example:
You need to sell other investments to fund the deposit, and forego potential interest earnings, capital growth, dividends, etc.
You don't have immediate access to the deposit amount in cash and, like many highly sought after investment properties, risk losing the property if you're unable to execute on the contract in a timely manner
The seller requires a long settlement period, or it is an off the plan purchase, and your deposit funds are going to be tied up when those funds could be working for you elsewhere
Our Client Story
Lynne had a growing portfolio of residential investment properties around Australia and was looking to add another, after an exciting off-market opportunity in Newcastle was presented to her. However, there was competition for this property with another buyer. Lynne’s offer was accepted by the agent but only under one condition – that exchange occurs, including deposit paid by COB the following day.
Given how quickly this property became available, Lynne, unfortunately, didn't have time to have her deposit ready as her funds were tied up in other assets that weren’t able to be liquidated that quickly. Lynne was at risk of losing the property if she wasn’t able to exchange quickly and given how unique the opportunity was, she really didn’t want this to happen.
Lynne applied for a deposit bond which was approved and issued within 24 hours, she then used this deposit bond instead of a cash deposit to secure the property. This allowed her to move quickly when needed, without impacting her other assets.