Exchange bonds – a weapon of choice?
Exchange bonds – what are they, why would you use them?
An exchange bond is an insurance backed bond that provides the seller (developer) with a guarantee that they will receive the deposit.
This replaces the cash deposit you (the purchaser) would normally have to pay on exchange.
That means:
- You retain liquidity (and any interest on your funds, you have a cash contingency and available funds for other investments)
- You can reserve immediately (taking priority over other potential investors)
- You mitigate cash flow issues – removing need to tie up funds for long periods of time
- You have effective access to low cost of funds (much lower than credit cards and most forms of personal loan)
But this is a specialist area. Something you need to seek specialist financial advice for. We can make sure you talk to people who have unique, exclusive products in this area so that you can make the most of your investment.
Working with our strategic finance partners Fuel Investments Limited, we can help to ensure that you have the right specialist product for your investment needs, including exchange bonds. Visit Fuel Investments for more information.