Coposit, the innovative disrupter in the home deposit arena, is making substantial strides in aiding homebuyers facing the housing affordability crisis. Since its launch, the platform has witnessed its client base quadruple, and it now has its sights set on facilitating up to $1 billion in property sales within the next 12 months.
Based in Sydney, Coposit offers homebuyers the unique opportunity to purchase property without requiring an upfront deposit or incurring additional fees. The company anticipates doubling its revenue within the next two to three months while expecting more developers to adopt the Coposit model for their projects.
Only a year ago, Coposit had just five projects on its deposit-saving platform. Presently, they have 38 projects on their roster, with expectations that this number will triple by the end of the fiscal year 2024.
Founded and led by brothers Chris and Dan Ferris, Coposit was established two years ago to primarily offer a solution to first-time homebuyers, allowing them to enter the property market without the traditional 10% upfront deposit requirement.
This platform has been heralded as a game-changer for the property market, as it enables buyers to secure new off-the-plan apartments or house-and-land packages by paying the deposit in manageable installments. After signing the contract, buyers make weekly payments known as ‘coposits’ throughout the construction phase.
Coposit has already assisted hundreds of first-time homebuyers to enter the market through its fee-free, forced-savings program. It has also proved beneficial to investors seeking to improve cash flow on off-the-plan purchases.
Starting in Sydney, Coposit has expanded its reach to Victoria, the ACT, and Queensland, where it has partnered with developers to enable eligible buyers to enter the market.
“The growth of our business is undoubtedly driven by the pressures of the cost of living, which affect property buyers’ capacity to save for a deposit,” stated Coposit CEO Chris Ferris.
“With record low employment, people have the income to get on the property ladder, but not many have $80,000 or $100,000 in their bank accounts to provide a 10% deposit when making a purchase. Our product was designed as a solution to this affordability issue and allows not only first-time homebuyers but also investors to pay their deposit through a savings plan, with no additional fees or charges, before buying property off the plan.”
Ferris explained that Coposit has been gaining traction with developers, attracting them to their off-the-plan apartments and house-and-land projects.
“Developers see Coposit as a platform to secure additional sales from buyers who might not have been able to purchase without a deferred payment or forced savings plan.”
Coposit has facilitated over $150 million in property acquisitions so far this year.
“With the increasing number of developers joining the platform each month and many more exploring the benefits we offer, Coposit has the potential to facilitate up to $1 billion in off-the-plan property transactions over the next year,” said Mr. Ferris.
Coposit indicates that discussions with banks have shown strong support for the platform as a solution to help buyers enter the property market.
“The banks we’ve engaged with understand that Australians are facing a significant challenge in the property market,” Ferris explained.
“We have a massive housing shortage, creating challenges for local, state, and federal governments. Simultaneously, affordability is being driven up by this supply shortage, rendering property prices out of reach, particularly for young individuals. What we have done is address these issues and develop a strategy that eases the burden of coming up with a lump sum of tens of thousands of dollars upfront while allowing people to save for their property and reach a substantial deposit position before settlement.”
Coposit’s business has grown organically over the past year, with developers and buyers coming on board after recognizing the benefits of the deposit-payment platform.
“Our business is a game-changer that revolutionizes the way people save for a property deposit,” said Mr. Ferris. “We’re experiencing rapid growth because we are fast-tracking the homeownership goals and dreams of Australian homebuyers, often by years.”
