Australian deposit bonds are a clever way to invest in property without having to pay the full purchase price.
“What is a deposit bond?“, you may ask. A deposit bond is, as its name suggests, an agreement between you and the seller of a property that secures your deposit.
The deposit bonds process involves five steps: 1) You sign an agreement with the seller; 2) The deposit is paid by either cash or cheque; 3) A copy of your contract and receipt for payment is sent to Australian Deposit Bonds Ltd.; 4) Once confirmation has been received from Australian Deposit Bonds Ltd., you receive a certificate confirming your deposit has been secured; 5) Your funds are released back to you when you close on the sale of the property.
Australian property investors can utilize deposit bonds as a way to increase their wealth by making use of the security deposit that is offered by the bond. In addition, deposit bonds provide an avenue for investors to purchase property in Australia without having to front the entire purchase price themselves.
There are a few misconceptions about Australian deposit bonds, so we’re here to set the record straight:
Deposit bonds are only for big purchases.
Deposit bonds can be used for any size deposit – whether it’s $500 or $500,000, deposit bonds can cover it.
You have to have perfect credit to get a deposit bond.
Not necessarily! Australian Deposit Bonds Ltd will consider your application based on your unique circumstances.
Deposit bonds are only for Australian citizens and permanent residents.
Australian eposit bonds can be used by non-residents as well, provided they meet the requirements set forth by Australian Deposit Bonds Ltd.
Deposit bonds are expensive.
The cost of a deposit bond will depend on the amount you’re looking to cover, but generally speaking, deposit bonds are very competitively priced.
You have to have a deposit to get a deposit bond.
This is not the case – in fact, deposit bonds can be used in lieu of a deposit.
Deposit bonds take a long time to process.
Not at all! In most cases, deposit bonds can be processed within 24 hours.
Deposit bonds are only for properties in Australia.
Deposit bonds can be used for properties located anywhere in the world.
You need a lawyer to get a deposit bond.
While you are welcome to use a lawyer to help with your deposit bond application, it is not required. Australian Deposit Bonds Ltd can help you through the entire process from start to finish.
Deposit bonds are only for people who have trouble saving money.
Deposit bonds can be a great tool for anyone – whether you’re looking to buy your first home or you’re a seasoned investor, deposit bonds can help you save time and money on your deposit.
You can only use deposit bonds once.
Deposit bonds can be used multiple times, provided you meet the requirements set.
Deposit bonds are a great way to secure your deposit without having to pay the full purchase price upfront. If you’re looking to buy property in Australia, deposit bonds could be the perfect solution for you.
Deposit bonds are a great way to secure your deposit without having to pay the full purchase price upfront. If you’re looking to buy property in Australia, deposit bonds could be the perfect solution for you. Australian property investors can utilize deposit bonds as a way to increase their wealth by making use of the security deposit that is offered by the bond. In addition, deposit bonds provide an avenue for investors to purchase property in Australia without having to front the entire purchase price themselves.
