Deposit Bonds for Investment Property.
Make your money work harder. Don’t have your money tied up in a deposit.
Deposit bonds for investment property.
If you have your eye on an investment property, a deposit bond can help you save thousands. Enter the market now and pay the deposit for your investment property at settlement.
Deposit Power has changed the game to put you in the game – making it easy to secure a property without tying up your funds.
How can deposit bonds help investment property buyers?
A deposit bond serves as a financial guarantee, so you don’t need an upfront cash deposit for an investment property. For investors, this means:
- Maintaining liquidity: Keep your funds available for other investments or expenses
- Expanding investment opportunities: Without the constraint of a large cash deposit, you can explore and secure multiple properties
- Flexibility and freedom: With quick approvals and digital bond issuance, Deposit Power accelerates the buying process so you can conquer a fast-paced market
Benefits of using a deposit bond when buying investment property off-the-plan.
Buying off-the-plan comes with its own set of challenges. Market fluctuations make it difficult to estimate the property’s final value, and unexpected construction delays can impact your investment.
A deposit bond for an investment property is a flexible financial solution that aligns with the longer settlement periods that are typical of these developments. Unlike cash deposits, which can tie up your funds for months or even years, deposit bonds provide a financial guarantee without locking away your capital. This makes them particularly appealing to investors who want to secure future developments while maintaining liquidity for other opportunities or expenses.
Additionally, deposit bonds are valid for extended timeframes – often up to 5.5 years – giving both buyers and sellers peace of mind throughout the construction process.
Keep your cash liquid
Break free. You no longer need to tie up cash for a long time.
Unsecured
No security required. Keep your assets ‘free’ for other opportunities.
Save thousands
Make your cash work harder for you in other investments.
Move quickly
No need to sell other investments or scramble to put together a deposit.
How do deposit bonds work? Step by step.
It’s common… you’ve found the ideal property but lack the full cash deposit or don’t wish to tie up your funds while selling your current property. Don’t worry: with a deposit bond, you can prepare for a purchase, even without a full deposit.
It’s that simple.
1. Application process
Submit your application to Deposit Power with details about the property purchase and your financial position.
2. Quick approval
You’ll receive approval almost immediately and your digital deposit bond will be delivered to your device within minutes.
3. Purchase and settlement
Present the digital deposit bond to the seller or real estate agent instead of a cash deposit when signing the contract of sale.
Pay the full purchase price, including the deposit amount, at settlement. The deposit bond expires once settlement is completed.
Investment property FAQs.
Everything you need to know about deposit bonds for purchasing an investment property.
What is a deposit bond?
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Can I use the equity in my existing property to secure a deposit bond?
Yes! One of the most powerful features of using a deposit bond for an investment property is the ability to leverage equity in existing properties. This means you can use your current property portfolio to secure deposit bonds.
Deposit bonds allow you to maintain your current investment structure while expanding your portfolio – a great way to scale your property investments.
Do all sellers accept deposit bonds for investment properties?
Most sellers accept deposit bonds for an investment property. However, it’s important to confirm with the seller or their agent before proceeding. Some sales contracts may need to be modified to specifically allow for deposit bonds.
Are deposit bonds suitable for off-the-plan investment properties?
Absolutely! Deposit bonds are particularly well-suited for off-the-plan purchases, as they can be issued for extended periods to match longer settlement timeframes. This makes them ideal for investors looking to secure future developments.
How long is a deposit bond valid for investment property purchases?
Deposit Power issues bonds for both short-term (up to 6 months) and long-term (up to 5.5 years) periods. The term is typically matched to your expected settlement date, making our deposit bonds flexible for various investment scenarios.
If your property settlement date changes or if you need extra time, you can often renew or extend the deposit bond. Deposit Power offers flexibility in extending the bond’s validity for an additional fee. This flexibility can help you manage unexpected delays while still maintaining the security of your property transaction.
How much does a deposit bond cost for an investment property?
Deposit Power charges a one-off fee to issue the deposit bond for an investment property. There are no other fees or ongoing charges involved.
The fee for a short-term deposit bond (with a term of up to 6 months) is calculated as a percentage of the deposit bond amount. Fees for long-term deposit bonds are based on the deposit bond amount and term required.
Get a quote online to find out how much your deposit bond fee will be.
Is a deposit bond suitable for high-value investment properties?
Yes, deposit bonds are available for high-value properties, covering up to 10% of the purchase price. This makes our deposit bonds suitable for premium investment purchases.