Hi Folks
I was just watching a FREE DVD called Property & You that I picked up around town. I thought it was interesting albeit having a neg gear angle some sections on finance and renovations was interesting.
One thing in particular was the mention of Deposit Bonds. So for around $500 you can get a bond for $10,000 (example only) and the bond expires on settlement and the finance covers or includes the deposit amount paid on settlement.
My question is, does any one have information about these bonds, is it dodgey, does it work what are the pros and cons.???
Cheers
Leigh KHi, Leigh.
Deposit bonds are only issued whenu can prove that u have the deposit or finance for it. They are good 4 ppl who have their money tied up in shares/settlement funds/term deposits etc. They are not dodgy, but r not well known yet. Even so, there is a large % of deals being done with them now. Most brokers and some banks will issue them [^]Hi Leigh,
You’re not talking about the fish and chip DVD, are you?
Deposit bonds are very popular these days for people wanting to get 100% finance on off-the-plan properties.
Usually they cost about 1% of the purchase price, and are like insurance which you put up to say “Yes, I will be able to afford the deposit when the time comes”.
If you want to read more about deposit bonds, SMH wrote something about it around christmas last year – http://www.smh.com.au/articles/2002/12/28/1040511217516.html
And this is what ANZ says about them.
http://www.anz.com/australia/insurance/deposit/faqs.aspTwo very different perspectives.
btw – I love your forum alias!
“…Enjo Enjo Enjo, a cleaning we will go…”Brent
Thanks guys
I haev been searching the forum as well and have come up with some more info about them. I will check out those links also Brent. Although I think this little fish might just Keep It Simple until I am confident about the main part of PI.
Cheers
Leigh KPS: Brent you sing better than I do [
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