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Marnie E.
Marnie E.
Carlton, VIC
1 Likes
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Is it possible to use a deposit bond as the deposit to buy a property off the plan. Property will be completed late 2019?

3 months ago

Responses

We don't see as many if them as we used to. But still see conditions in contracts dealing with it.

Hi Marnie,

The short answer is yes, but the further the settlment is away, the more it costs.

If you could tell me the follwing info, I could give you an accurate cost of the bond -

- Purchase price
- Deposit Bond required
- Bond Term required
- Purchasing as an individual or through a company of a trust?
- Has your finance been approved?

If you would prefer to reply by email, please feel free to do so.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au

Comments

Thanks Michael, will send email

Dear Marnie

Yes you can, and if you get a finance pre approval then you can talk to a broker or solicitor to go ahead with a deposit bond.

Regards

Madhu

Marnie,

Excellent question that demonstrates your willingness to get your money working for you.

A deposit bond can be used however it is subject to the vendor accepting it. I would strongly recommend that you have dialogue with the vendor first before you go too far down that path. Once they give you the all clear - knock yourself out! There are a number of suppliers to the market and can turn it around inside of 24-48 hours.

At one stage 1:3 property exchanges were done with deposit bonds, however the market has cooled a little and off the plan are one of the best options here.

Love to help you arrange one or help you through the process. Just a call away!

Regards

Craig N

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