Deposit Bond

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From: Mike .


How do i organise a "no cash Deposit"?
From: Peter A
Date: 07 Jan 2001
Time: 20:08:15

Hi all,

We are about to jump into our 2nd IP and i need some advice in relation to deposits and mortgages.

1. With our 1st IP which we picked up at auction i was required to present a $5000 deposit within the next 2 to 3 days to the land agent which i was able to do by drawing down on our homeloan offset account. We were then able to return this money after we had arranged our IP loan some weeks later.

Jan talks about no cash deposit being necessary to purchase properties. But my question is how can we go about organising a deposit as was the case at auction without dipping into our own home loan account? How can this be arranged given the time needed to arrange finance, sign lengthy documents and have legal eagles do a lot of paper shuffling? Or am i being naive as this is what must be done???

2. When arranging finance for the next IP should i create a new mortgage or refinance and put both loans together???

Many Thanks for any advice - Peter A

PS Can anyone suggest any reliable property management companies operating in Adelaide?

 

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Rolf

Reply: 1
From: Mike .


Re: How do i organise a "no cash Deposit"?
From: Rolf
Date: 07 Jan 2001
Time: 20:36:19

Hi Peter

If you are on a consistent aquisition trail you could find yourself a good mortgage broker that will help you out with these things.

Some answers to Q number one are that the answer depends - ranging from deposit bonds to a separate investment loan/ line of credit secured against your residence.

Answers to Q two are mainly a matter of opinion !

Although many would not agree, NEVER NEVER tie up both loans "together" with one institution. Structure them separately (with one institution OK) for tax compliance, simplicity and later refinance reasons.

Please contact me on [email protected], a little more detail on your individual situation would clarify the answers.

TA - Rolf