One of the prime users of the Deposit Power Bond product are upsizers and according to Cameron Kusher, Director of Economic Research at realestate.com.au, the property market has seen an upswing in this type of property buyer now that COVID-19 lockdown measures have been relaxed in June 2020.
So, who are upsizers and how can a Deposit Power bond help them?
Upsizers are existing property owners who are looking for a larger home. Invariably the reason upsizers need a bigger home is that due to an expanding family, they have outgrown or can see they will outgrow their home in the not too distant future.
Those first to enter the property ladder are usually first home buyer couples. In metropolitan regions they often purchase a one or two bedroom apartment which is suitable for those first few years as they build their careers and go travelling.
But once the first child is on the way, they invariably have a conversation around how long they plan to stay in their current home and when they plan to move into something bigger. Then with one or two children approaching pre-school years, the focus turns to a larger play area for the children, the need for more bedrooms and bathrooms and with that, an upsize move is definitely on the cards.
A couple who have been living together between 5 to 10 years in their current property will have built up a reasonable amount of equity. So, when they sell, they will have a decent deposit for the new home. That is, they are asset rich but cash poor.
Sometimes the couple have signed contracts with a buyer but are yet to complete the sale. In the meantime, they have found their dream home but don’t have the cash at hand to commit to buying it which is needed when they sign the contract.
That is where a Deposit Power Bond can help. If you’re good for the new purchase but don’t have the cash deposit at hand, Deposit Power can help. All you need is a loan approval or evidence you own an existing property and we can get you on your way to securing that new property. And the cost is only 1.3% of the deposit amount. So a deposit power bond of $70,000 will only cost $910 which is a small price to pay to secure your dream home.