- Coposit app enables buyers to purchase for just $10k deposit and pay remainder in weekly installments sans interest
- Several leading developers brought on board, including Geocon and Third.i Group
- 85 of 97 apartments sold using app during successful trial with Civic Properties
In a show of strength for the prop-tech industry, several leading developers have joined forces with new Sydney startup Coposit.
The Coposit app offers prospective homebuyers a solution to financial obstacles, allowing buyers to purchase a brand-new property with just $10,000 in savings.
The remainder of the deposit is then paid in weekly installments named ‘coposits’ while the property is under construction, and does not incur any interest or fees.
Since launching in September, the platform has since garnered support from a number of residential developers including Geocon, Third.i Group, JMGM, LFD, Orion
International, FormQuip, and Eastern Pacific.
A solution to deposit woe
After seeing the barrier that saving for a deposit poses to home ownership, the idea for Coposit came to fruition by Founder and CEO Chris Ferris.
“We could see how increasingly difficult it was for people to get into the property market, especially in Sydney where real estate prices have been dramatically rising at $1,000 a day in some suburbs and outstripping wage growth.
“Reports have shown it now takes at least six years for young people to save a deposit for their first home, and increasing prices continue to keep home ownership out of reach for thousands of people – most of whom can easily afford the repayments,” he said.
With the platform’s sights initially set on the New South Wales market, Coposit has collaborated with several local developers to list projects across Sydney, Newcastle and ACT.
Ahead of schedule, the platform has also recently expanded to the Victorian market, bringing total listings to surpass 500 individual properties.
“The market has been quick to accept Coposit, which further highlights the deposit obstacle and how essential it is to help buyers at this critical early stage in the buying process.”
Chris Ferris, Coposit Founder & CEO
“Because of this, we have embarked on our interstate expansion faster than we anticipated and it has been organic and fueled by developer demand for Coposit,” said Mr Ferris.
The startup has plans to expand to Queensland in the coming months.
Partnership with leading Canberran developer
One such company to welcome Coposit aboard its projects is Geocon, Canberra’s largest property developer.
Geocon has partnered with the platform on stage one of a two-stage release of a mixed-use development in Woden, entitled WOVA.
WOVA is due for completion in 2024 and will sit within the Government business hub of Woden Valley, consisting of 802 apartments spanning four buildings.
Buyers will be offered a choice of one, two and three-bedroom apartments and provided access to exclusive amenities including a rooftop terrace, sauna and lap pool.
Geocon’s Sales Manager Adam Morgan said part of the developer’s vision is to create homes and wealth for everyone.
“Coposit’s focus on the end-user delivers a unique edge for people new to the property market, providing an advantage on their home ownership journey.”
Adam Morgan, Geocon Sales Manager
“Geocon‘s high-quality product and low price point are ideal for first home buyers, who are further supported by a strong local economy, low unemployment, and a challenging rental environment.
“We see the partnership with Coposit as one that can benefit all Geocon’s future buyers, particularly first home buyers,” he added.
Trial success brings more developers on board
International property developer Third.i Group has also joined the app’s growing portfolio, listing its Dairy Farmer Towers project.
The project, situated in Newcastle West, will transform the Dairy Farmers Corner into 190 residences and five floors of commercial space.
Third.i Group Director Luke Berry said the developer has noticed an increasing need to help buyers across the line in terms of deposits, and is pleased to offer Coposit as a solution.
“Coposit presents a real alternative to the standard 10% deposit, and we expect it will also drive sales to first home buyers and investors at the same time,” Mr Berry said.
The app found success in its initial trial, partnering with Civic Properties to promote Seven Hills’ The Hills Village.
The platform was trialed for The George Apartments in The Hills Village, and saw 85 of 97 apartments sold using the app in under five months.
Of the buyers, 78% chose to make payments in the form of weekly coposits and 23% could not have made a purchase without Coposits’ assistance.