Using a CC for home deposit - can you earn points ?

[Nizar]

Hi everyone,

I was reading this article earlier today

http://www.domain.com.au/news/first...s-to-cover-deposit-shortfall-20150930-gjwwog/

And it had me thinking.

Obviously a cash advance wouldn't earn points but if you were to "purchase" a deposit book as described here:


"Home buyers could potentially use credit cards by taking a cash advance, or by using the credit card to buy a deposit bond.

Would you earn points on that ?
Obviously if you are buying something then it should be classified as a purchase ?

Maybe this strategy is a even if I don't actually need the credit ?
eg. Have 200k cash in the bank, want to buy a $million dollar home, but instead put that money onto a CC (throws the CC well into surplus) and use the CC to get a deposit bond.

If you're earning 1:1 200k QFF points is nothing to scoff at.

Thoughts ?

 

[SponsorSFC]

Purchasing a deposit bond would not earn you 200K points.

The bond is effectively a guarantee you purchase from a 3rd party (like an insurance policy). This ensures that the vendor will have the deposit amount paid either in full at settlement or paid by the bond issuer in an occurrence where the deposit would normally be forfeited by the purchaser.

A deposit bond would cost approximately $2,500 on that amount depending on the state and the amount of time the bond was for. That is the only amount you could earn points on.

Now if you could pay for the deposit via Paypal that could be interesting.

 

[Cruiser Elite]

Nizar best discussed with your Solicitor - certainly not impossible.

 

[Radio8tiv]

I'd be very interested to hear to outcome of your findings, pretty sure when I bought last time (a few years ago, before collecting points) that I paid the deposit directly to the real estate, if they take cc maybe it can be done.

 

[Dr Ralph]

I've never seen this done and would advise against it. Deposits are made in specific ways to protect both the purchaser and the vendor.

 

[Caversham04]

I'd be very interested to hear to outcome of your findings, pretty sure when I bought last time (a few years ago, before collecting points) that I paid the deposit directly to the real estate, if they take cc maybe it can be done.

I did this successfully earlier in 2015 (there's a separate thread somewhere). They would only take Visa, which is fair enough, so I had to use a 0.5 pts / $ NAB Velocity card, but it was still worth doing as there were no CC surcharges. It's always worth asking whether it's possible........

 

[get me outta here]

I also would like to hear about this for a young relo. PayPal is an interesting option if available. Points on a 10% deposit in the SYD market would be 100k points straight off. It's a while since I've bought real estate, but if anyone tests any of this plse report back on research.