Deposit Power is a guarantee (also known as a bond) issued by Vero Insurance Limited to the vendor. It acts as a substitute for the cash deposit between signing a contract and settlement of the property. At settlement the purchaser is required to pay the full purchase price including the deposit. The use of a Deposit Power Guarantee does not remove the obligation of the purchaser to pay the full deposit, but delays that obligation until settlement.
The Deposit Power Guarantee can be issued for all or part of the deposit amount required, up to 10% of the purchase price. Acceptance of the Deposit Power Guarantee in lieu of a cash deposit is at the sole discretion of the vendor.
Long Term Guarantee - with expiry dates between 6 and 48 months.
Should the purchaser default under the contract of Sale/Offer and Acceptance, the vendor can claim the amount guaranteed from Vero Insurance Limited. Vero Insurance Limited will the seek to recover this amount from the purchaser.
Deposit Power was introduced into the Australian market by Vero Insurance Limited (formerly Royal & SunAlliance Insurance) in 1989 and is legally effective in all Australian States and Territories.
For more detailed information on how deposit bonds work for home buyers please follow the link to DEPOSIT POWER.
FACT SHEETS
FACT SHEET - First Home Owners Grant & Duty Concessions
FACT SHEET - First Home Saver Accounts
FACT SHEET - Deposit Bonds
FACT SHEET - Loan Establishment Costs
FACT SHEET - Frequently Asked Questions
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FIRST HOME BUYER NEWS
Rental rage rife in Sydney's housing drought
Source: ABC News
Wed Sep 24, 2008 7:41am AEST
One in three real estate agents have been threatened or abused
by tenants competing for just 739 rental properties available in
Sydney, the Real Estate Institute of New South Wales says.
Sydney's housing vacancy rate for August was unchanged from July at
1.2 per cent.
The institute says Sydney's population is growing at more than 1,400 people a week - almost double the number of
properties available at the latest survey date of August 15.
Its survey of 200 agents has found 32 per cent had been abused or threatened over the phone.
One real estate agent told the institute a tenant who was in arrears had threatened to commit suicide if he was evicted.
Institute president Steve Martin says police have been called into real estate offices in other instances.
"We've had threats to property managers that in the event of their application not being approved, physical violence would
take place," he said.
"It's pent up frustration from tenants, where they have been continually applying for premises and unfortunately, their
applications just haven't been approved.
"Now, that's not necessarily their fault. The properties simply aren't available."
Mr Martin says nine out 10 agents surveyed said they received five to 10 applications for each rental property.
NSW Council of Social Service spokeswoman Alison Peters says there is a dearth of suitable properties for people on low
incomes, and that can lead to stressful situations.
"For low-income earners, we know it's causing a lot of distress. It probably is the case that some people are getting agro,"
she said."Unfortunately, in these circumstances when families are under stress, it tends to be the families that suffer."
State Opposition housing spokesman Brad Hazzard says the Government needs to cut charges and red tape to encourage
developers and investors back into the rental market.
"They need to re-look at the regulatory regime but also to reduce the infrastructure taxes and charges, in particular in the
new areas like the south-west and north-west growth centres," he said.
"For example, in the south-west growth centre, not one single property has come to the market, despite the fact that we
were supposed to have thousands of new properties available
The Real Estate Institute's latest vacancy figures show the rental crisis eased slightly in inner and outer suburbs last month,
but middle Sydney recorded the worst result yet: a 0.1 per cent drop to 1.2 per cent.
Inner Sydney vacancy levels rose 0.2 per cent to 1.4 per cent, while outer Sydney levels increased 0.1 per cent to 1.1 per
cent.
Newcastle rental vacancies rose 0.1 per cent to 1.6 per cent.
Wollongong levels fell 0.2 per cent to 2.1 per cent, while New South Wales central coast vacancies fell 0.1 per cent to 3.1
per cent.
To read more, please visit
ABC NEWS.
Popular Sydney Suburbs for First Home Buyers
Sydney's South Western and Western Suburbs have remained top locations for first home purchases in New South Wales.
New South Wales Office of State Revenue
reports that in the 8 year period from July 2000 to June 2008, the top 20 suburbs for claiming First Home Owners Grant were Liverpool (6410 approved applications),
Campbelltown (4905), Wentworthville (4281), Blacktown (4183), Cabramatta (4075), Gosford (3587), Mt Druitt (3733), Bankstown (3012), Wagga Wagga (3505),
Quakers Hill (2819), Baulkham Hills (2486), Kellyville (2605), Hornsby (2555), Penrith (2670), Wyong (2616), Parramatta (2366), Dee Why (2507), Fairfield (2456),
Hinchinbrook (2579), and Glendenning (2586).
During this period a total of $487,058,800 were distributed to FHOG applicants in suburbs covered by these 20 postcode areas.
A further $419,632,620 were granted in stamp duty exemptions to 58,563 applicants in the same locations during this period. The total amount of first home benefits in New South Wales during the last eight years
reached a staggering $4,608,569,208.
Source: NSW office of State Revenue
For more information, please visit thlo page for
Buying Your first Home.
