Described as the “Afterpay of property”, an innovation called Coposit seems poised to change the way that buyers can enter the residential property market.
Eliminating the requirement for a traditional 10 per cent deposit, Coposit is the brainchild of accounting and property executive Chris Ferris, who explained the concept and process—and the motivation to create it—in this TUD+ Briefing.
Ferris said Coposit was not a loan.
“Usually, buyers pay a 10 per cent deposit, that may have taken five or more years to save, on exchange and it sits in a trust account for the duration of the construction period—then at settlement those funds are released to the developer, if they complete,” he said.
“What we’re saying is that there’s a better way to do it, which is allowing the purchasers to use that period of construction to save for that deposit.
“So, they’re exchanging on a minimum of $10,000, and then during that construction period, they’re paying weekly payments to get to that 10 per cent.
“We schedule those payments so they're always three months before completion—we want to make sure that there is plenty of time at the end to get their finance.”
Ferris said he firmly believed Coposit was a gamechanger.
“We believe that once we launch Coposit officially next month it is is going to be the way that we buy property,” he said.
“We anticipate that people walking into showrooms are going to ask if Coposit is available and it will be a key decision maker.”