Deposit Bond Trap

[WebBoard]

From: Kevin Forster


I'm sure that if deposit bonds are used properly that this would not happen but it's a trap for new investors and once again some unscrupulous 2 tier marketers.

http://www.moneymanager.com.au/investments/property/news/2001/08/12/FFXA36JKCQC.html

Kevin

 

[WebBoard]

Reply: 1
From: Sam Coster


Kevin
I have used DB to purchase a number of
properties off the plan, using the formula
in the article.
To date I have not been requested or needed to
get prior finance approval.
Under the circumstances, as the completion is
at least 24-36mnths out, any prior approval
would be meaningless, as i don't know what the
final selling price will be.
please explain what law is being broken if
you do approach a number of financiers, as i
am quite sure that I would only be able to
get one source of finance per property.
sale
Samc
Enjoy the journey, its half the fun.

 

[Rolf Latham]

Reply: 1.1
From: Rolf Latham


Hi Sam

Probably No law - comes down to disclosure of "previous" financial assets and liabilities that one is asked to give when applying for finance.

Ta


Rolf