Dear All,
Whether you’re buying your first home or your next residential investment property, you’re about to discover that the traditional assumption of contributing all your available cash upfront no longer needs to apply.
Now, there is a smarter structure.
Not because cash deposits no longer matter.
But because tying up more of your available cash than necessary may no longer be the best use of your capital.
Cash Is King
One principle has stood the test of time:
- Cash provides flexibility
- Cash creates opportunity
- Cash protects against uncertainty
- Cash can fund renovations, cover unexpected expenses, provide an economic buffer, or simply allow you to sleep better at night.
Yet many property investors willingly hand over every available dollar as a deposit before they’ve even received the keys.
Once that money has gone into the property, it’s no longer readily available, and it is not working for you as hard as it could.
There Is a Smarter Way to Invest
AffordAssist introduces a different way to structure a residential property purchase.
Instead of contributing more cash towards your deposit than necessary, eligible buyers may defer part of the purchase price through AffordAssist’s Interest-Free Deferred Deposit Solution.
The deferred amount is not a loan. It is not vendor finance.
It is an interest-free agreement that enables buyers to keep more of their own cash while reducing the amount borrowed from the lender.
With this structure, you may be able to:
- Keep more of your savings
- Borrow less from the lender
- Pay less interest over the life of your loan
- Maintain a financial safety buffer
- Be better positioned for future opportunities
Keep your cash working for you in your offset account, earning returns, reducing the overall loan term, or funding your next move.
Personalised Scenario
Rather than providing a generic example of the potential financial benefits, we believe it is far more valuable to calculate a personalised scenario with your trusted accountant, financial planner or mortgage broker.
Consider the potential financial outcomes of:
- Reducing your home/ investment loan by 10%
- How much sooner your first mortgage could be repaid
- The total interest savings over the life of your loan
- The interest your retained cash could earn in an offset account or through other suitable investments.
We believe the results may help strengthen your long-term financial well-being and demonstrate the value of keeping more of your cash working for you.
It Is About Structure
Wealth creation isn’t simply about buying property and waiting on market movements.
It’s about how the purchase is structured.
Every dollar that doesn’t need to be borrowed can potentially reduce future interest costs.
Every dollar that remains in your own bank account continues to provide flexibility.
Perhaps the new, better question is:
“How much of my cash should I keep?”
Rather than viewing your cash deposit as something that must disappear on settlement day, consider whether it could continue working for you after settlement.
A Different Way to Think About Deposits
AffordAssist can be applied across many residential property purchases, including:
- Established homes
- New homes
- Off-the-plan apartments
- House and land packages
Perhaps the next evolution is learning how to use less of your own cash without compromising ownership.
After all…
Cash is still king.
So why give it all away?
Regards
AA – Link to book a 10-minute call
B2B – AffordAssist facilitates and oversees the governance process. Are you a mortgage broker, lender, developer, real estate agent, affordable housing advocate, a community leader or housing minister? Pair your services with AffordAssist. Join us in our mission to expand access to home ownership. Together, we can make a lasting impact.
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