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From: Mike .
Deposit Bonds
From: Katrina D
Date: 8/31/00
Time: 3:10:06 PM
Hi All,
I have just bought my first IP (I went 50% with a friend)...we have bought off the plan and as such, settlement is over 18 months away (they say June next year, but who are they kidding!).
We had to come up with 5% deposit...I had my half but Riss was going to re-draw from her mortgage.
Instead, we ended up with a deposit bond. This cost us $93 and meant that I don't have to give my money to the developers for over a year. It also meant Riss doesn't pay interest unnecessarily.
I have parked my 5% in a term deposit (since it's a short term investment, I didn't want to risk it on the market) meaning I'm in front at settlement.
This just seems too easy to me. Can someone tell me if I've missed something? Why wouldn't everyone do this?
Thanks, Katrina
Deposit Bonds
From: Katrina D
Date: 8/31/00
Time: 3:10:06 PM
Hi All,
I have just bought my first IP (I went 50% with a friend)...we have bought off the plan and as such, settlement is over 18 months away (they say June next year, but who are they kidding!).
We had to come up with 5% deposit...I had my half but Riss was going to re-draw from her mortgage.
Instead, we ended up with a deposit bond. This cost us $93 and meant that I don't have to give my money to the developers for over a year. It also meant Riss doesn't pay interest unnecessarily.
I have parked my 5% in a term deposit (since it's a short term investment, I didn't want to risk it on the market) meaning I'm in front at settlement.
This just seems too easy to me. Can someone tell me if I've missed something? Why wouldn't everyone do this?
Thanks, Katrina
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