Deposit guarantee company Deposit Power has launched a new product to assist investors and business owners purchase commercial properties without the need to provide a cash deposit.
The Deposit Power Commercial Deposit Guarantee product has been designed to assist brokers who deal with SME customers, investors and the growing SMSF
market to purchase commercial or business zoned properties that were previously unable to access a deposit guarantee product.
Deposit Power has been providing deposit guarantees for residential property purchases for 25 years. Deposit Powers General Manager Keith Levy said its commercial product will work in the same way as its residential deposit guarantee, representing the cash deposit up to 10% of the purchase price of the property. This means a full deposit doesn’t have to be paid in cash when the contracts are signed, with the buyer paying the full purchase price to the vendor at settlement.
“The product is a natural extension of our product range which now includes specialty products for first home buyers, Off the Plan, SMSF’s, auctions and now purchasers of most types of commercial properties.
“We recognise that commercial property particularly as an investment has become an attractive option for many people and we are excited to offer a product that we believe will also assist many thousands of investors and business operators enter the commercial property market.”
Deposit Power Guarantees are useful for customers who don’t have ready access to a cash deposit such as investors borrowing the full purchase price, first home buyers and where customers have their sale and purchase simultaneously settling.