An innovative new property app called Coposit is set to be launched in November, enabling buyers to secure a property with only a $10,000 deposit for the first time in Australia.
With rapidly escalating property prices and deposit goal posts constantly on the move, Coposit is set to be a revolution in property buying with the potential to help thousands of buyers get into their properties faster.
It currently takes the average Australian nine years to save a deposit for a property in an Australian capital city, according to Treasury. Meanwhile house prices continue on an upward trajectory with Australian Bureau of Statistics (ABS) recently released data revealing Sydney property prices rose 8% in the June, 2021 quarter alone.
Coposit presents potential buyers with a wholistic offering where they can browse property listings, submit an enquiry for a property, pay and manage their deposits and even exchange contracts digitally from anywhere in the world.
The platform enables buyers to purchase a property with as little as $10,000 in savings and pay the remainder of the deposit over weekly payments, called ‘coposits’ with no interest or fees.
Coposit is working to onboard quality developers and properties onto their system as a tool for existing agents to help support purchasers in managing their deposit requirements.
The minimum deposit is set at $10,000 with weekly coposits (payments) made to achieve the full 10% deposit amount at a minimum of 3 months prior to practical completion.
All client funds are held in Real Estate Trust Accounts with a top 4 Australian Bank.
With millennials a key target demographic for Coposit, it is also expected to appeal to a diverse range of homeowners and investors seeking to manage their cashflow and debt exposure.
As with any pre-sale contract, Purchasers using the system should seek legal advice and be aware of their rights and obligations as a failure to meet a deposit payment may lead to a contract being rescinded.
Created of the app and CEO of Coposit Chris Ferris said, “Coposit has been years in the making, we could see how increasingly difficult it is becoming for people to get into the property market, especially in Sydney where real estate prices have been dramatically rising.”
Chris Ferris has some 10 years’ experience in the property sector and was most recently Director of Sydney-based development company Civic Properties for eight years prior to creating Coposit.
He explains that his background helped formulate the Coposit app with the primary goal of helping purchasers, but importantly with a comprehensive understanding of the symbiotic needs of developers, financiers and real estate agents who are all integral in the sales process.
Coposit is a game-changer for property developers, particularly for developers of off-the-plan apartment and house stock. It effectively opens a whole new market of potential buyers and also streamlines the sales process with a suite of customised back-end tools that simplify sales, manage inventory, and maintain buyer engagement.
“With our property development background, we know where the pain points are for developers in the sales process and issues around pre- commitment levels and project finance. At the same time, we saw an untapped opportunity that exists in the wait time for buyers, particularly while new homes and apartments are being constructed. Currently deposits are paid upfront and sit in a trust account pending settlement, which could be years away. This period of time lends itself ideally to buyers effectively paying off their deposit,” he said.
According to Ferris, early developer feedback to Coposit has been extremely positive.
Prior to its official release Coposit has already attracted the interest of several developers who are looking to list their projects on the innovative new app.
“Coposit unlocks a whole new sales channel and has proven to deliver an additional 23% of buyers who are otherwise unable to buy. It does the heavy- lifting and makes the sales process fast and easy. Developers and agents can access all relevant sales data and analytics in real-time within seconds,” Ferris said.
“Coposit also helps to qualify buyers and minimise settlement default risk – delivering on the dream wish list of any developer,” he said.
With an initial focus in New South Wales, Coposit plans a national roll-out starting with Victoria, Queensland and ACT.
The early consumer response to Coposit has also been promising and is testimony to the pent-up demand with many buyers needing assistance to get a deposit together.
Coposit was initially trialled at Civic Properties’ The Hills Village in Sydney’s western suburb Seven Hills. When complete in 2022, it will be the first planned community in Seven Hills with 400 plus apartments across four separate buildings. It features extensive landscaping, community facilities and resident facilities such as a rooftop entertaining areas and private gyms.
Coposit has been extremely successful with an overwhelming 74 of 97 apartments were sold using the innovative app in just under five months since being trialled at The George Apartments in The Hills Village.
Importantly 78% of buyers elected to make weekly coposits, while 23% of buyers would not have been able to purchase without the innovative app.
Coposit has a range of features in-built including a dashboard providing clients with a summary of key information about their property and payment history as well as regular project updates via app notifications.
It also helps buyers develop a payment history with the regular weekly ‘coposits’ or payments helping to demonstrate financial discipline and loan serviceability to financial institutions when it comes time to settle the property purchase.