Hi fellow forumites. I remember a few years back I was studying Real Estate at Tafe. One of the teachers mentioned that as a purchaser you can actually get the interest earnt on your initial 10% deposit. I've never worried about doing/trying it as i usually use deposit bonds but I just wanted to see if anyone has ever done this or if it the laws had changed regarding this. Also it would a great way of getting a little bit of money back after a purchase
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
I don't really understand what you mean by "get the interest earnt on your initial 10% deposit"
As far as I know, you cannot claim interest on your deposit.. unless you BORROW your deposit!
I wish this were true, because I am just dropping 50K of my hard earned savings on a deposit for my first house.
I imagine if you have other investment properties you could use the equity or LOC in those loans to fund your next deposit, and therefore you can claim that interest as tax deduction.
You cannot earn interest on the 10% deposit. This is another reason to try and negotiate 5% instead of 10%.
The funds go into the real estate agent's trust account. Trust account do not earn interest. Therefore, no one (you, agent or vendor) benefits from this.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Agree with Shahin. Those funds are going to sit dormant in the REA's trust account.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
The contract may provide that the deposit be put in an interest bearing account in joint names of the purchaser & vendor. In this low interest environment, even a $100k deposit will earn very little interest over the 40 days that the funds are held in trust.
As Shahin points out, the RE trust account does not earn interest (this is creamed off by the State Govt for some RE fraud scheme).
Faircall I thought it sounded a little to good to be true. Has this changed over the years or has it always been this way?
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Scott No Mates wrote:The contract may provide that the deposit be put in an interest bearing account in joint names of the purchaser & vendor. In this low interest environment, even a $100k deposit will earn very little interest over the 40 days that the funds are held in trust.As Shahin points out, the RE trust account does not earn interest (this is creamed off by the State Govt for some RE fraud scheme).
Yep, here in Victoria the interest is paid to the Victorian Property Fund which is administered by Consumer Affairs Victoria.
Cheers
Tom
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