When you enter into a purchase contract you are generally required to pay a deposit of between 5% - 10% once the vendors have accepted your offer,the cooling off period has expired and all initial finance conditions of the sale contract have been met.
This can often mean drawing out tens of thousand's of dollar, sometimes 3 to 6 months prior to settlement. Withdrawing these funds can also result in the loss of many hundreds of dollars in additional interest that�could have otherwise been put towards the purchase or ancillary expenses.
Deposit Bonds is a relatively unheard of product that allows a purchaser to enter into a purchase contract without having to find a deposit.
Deposit Bonds are especially helpful to purchasers who enter into an off the plan contract, where the property will not settle for an extended period of in excess of 6 months, or to investors who have their money tied up in assets that they do not wish to liquidate.
Make sure you check with the property selling agents prior to entering into any formal contract, as not all vendors will accept this type of deposit.
