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Key summary
- Stephen and Elizabeth made the decision to downsize, and found their ideal off-the-plan apartment on Sydney’s Lower North Shore, due for completion in 2028.
- Paying the large upfront cash deposit would have meant drawing down their superannuation or selling an investment property to access the equity.
- After weighing up their options, Stephen found they would be financially better off using a deposit bond and keeping their money invested during the build.
- Stephen and Elizabeth are enjoying the flexibility of staying in their family home, preparing to downsize on their own terms and timings.
Purchase details
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Purchase price: $5,575,000
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Deposit amount: $575,000 (10%)
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Type of property: Off-the-plan apartment
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Location: St Leonards, Sydney, NSW
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Settlement period: 3.2 years
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One-off fee upfront
Their fee will be offset by keeping their deposit working hard in superannuation, savings or investments until settlement.
Fast approval within 24 hours
Quick and easy transaction from application to approval.
Buy before selling
Stephen and Elizabeth are able to stay in their family home until the new property is ready in 2028.
The challenge: Downsizing on their terms
Stephen and his wife Elizabeth were ready to downsize from their long-term family home into a premium off-the-plan apartment close to family and their local community.
“We are rattling around in a big three-storey house. We thought it was time to downsize while we’ve still got our joints intact.”
With a 3.2-year construction period, the timing was perfect, giving them time to prepare for the big move in 2028. But securing the property required a $575,000 deposit.
The couple had the financial capacity to complete the purchase, however paying the upfront deposit in cash would have meant withdrawing funds from their superannuation, years before settlement.
“We hadn’t sold our current house and we didn’t want to sell any of our investment properties. We thought we’d have to draw down from our super to pay the deposit.”
The solution: Using a deposit bond as their property deposit
During the sales process, the developer’s sales consultant asked Stephen how they planned to fund the 10% deposit. After learning they were considering withdrawing money from their super to pay the upfront cash deposit, they suggested Stephen explore using a Deposit Power deposit bond instead.
“I’d heard of deposit bonds, but I didn’t fully understand how they worked. Once I did the maths, I realised the returns I expected to earn by keeping my money invested in super outweighed the one-off cost of the deposit bond. It was a no-brainer as far as we were concerned.”
The application process was equally straightforward.
“It was approved the next day. Quite painless. It’s possibly the best financial dealing I’ve ever had.”
“Buying our next home is an exciting new chapter for us, but we didn’t want to withdraw hundreds of thousands of dollars from our super years before settlement just to pay the upfront deposit. Once I did the maths, using a deposit bond was a no-brainer.”
A successful outcome: securing their next home while keeping their funds working hard
Stephen and Elizabeth secured the property they loved while keeping $575,000 invested until settlement, allowing them to continue earning returns while preparing for the next chapter of their lives.
“I’d definitely recommend a deposit bond to anyone looking to downsize or buy off the plan. because you save money and the whole process is very simple.”
“We could keep our retirement savings invested, the process was incredibly straightforward, and we were approved the next day. I’d definitely recommend it to anyone looking to downsize.”
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Why choose Deposit Power Bonds?
If you can afford the property, we’ll cover the deposit.
Move Quickly
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Keep your cash deposit earning for you in other investments until settlement.
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Pay only when your deposit bond is approved—no money trapped upfront.
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