In what is perhaps yet another sign of just how buoyant the housing market, a new form of financing deposits has emerged, the deposit bond or guarantee.
Thursday, October 9th 2003, 3:17AM
by The Landlord
A home-grown company, Deposit Bond, has been operating since April last year and its business is secured by the "AAA" rated Great Lakes Reinsurance in Britain which is ultimately owned by Munich Reinsurance. Now another, Deposit Power, which is ultimately owned by the recently listed Promina has opened for business in New Zealand after first establishing a business in Australia where it has operated since 1989.
Essentially, they offer potential residential property buyers the option of paying a relatively small fee to have their deposits guaranteed, rather than having to pay it in cash, until settlement date.
