What is the difference between the Assemble Model and a ‘rent-to-buy’ model?
A ‘rent-to-buy’ model typically requires residents to pay above market rent during their lease period with the ‘extra over’ payment applied to the purchase price. If residents decide not to purchase, in most cases, they will lose the ‘extra over’ payments.Under the Assemble Model, the rent is agreed up-front and is calculated at a market rate. If your home does not live up to your expectations, you can exit the lease after the first 12 months or decide not to purchase at any time. The Assemble Model, therefore, offers more flexibility compared to a ‘rent-to-buy’ model.
What initial payments are involved in participating in the Assemble Model?
To secure a 5-year lease with the opportunity to buy your home at the end of your lease, you pay a 3-month rental bond upon signing your documentation. Your bond money will not be held by Assemble – it will instead be paid into our nominated trust account before being lodged and held with the Victorian Residential Tenancies Bond Authority (RTBA), just like any other bond.
Does the rent I pay over the 5-year lease contribute towards the purchase price of my home?
The rent paid over the 5-year lease is a market-rate rent and is not applied to the purchase price. This provides you with the flexibility on whether or not to proceed with the purchase.
What if my circumstances change during the 5-year lease? Can I sublet my home?
Yes, you can sublet your entire apartment for up to 2 years so long as it is on the same terms (i.e. rent) as agreed with Assemble. We don’t allow subletting for more than 2 years to discourage investors from participating in the Assemble Model.
Can I sublet a room within my apartment?
While we do not permit short-term rentals such as Airbnb, you can sublet a room within your apartment (but not the entire apartment) for more than 2 years, but not less than 12 months.
What happens if the market value of my home is higher than the purchase price at the end of the 5-year lease?
If you choose to purchase your home, any increase in the market value of your home above the fixed price is to your benefit.
If I love my home and decide to purchase it, how and when do I buy the property?
You will need to exercise your option to purchase your home after the 5 year and one month mark by written notice within 14 days. A 10% deposit will be required, and you will need to settle on the property as you would any other property. You are unable to purchase the property any sooner than this.
Does the 3-month bond I already paid contribute to my deposit at the end of the 5-year lease?
If you choose to purchase at the end of the 5-year lease, the bond will be returned to you and can be put towards your deposit if it is refunded in time or be used as you see fit.
I don’t live in Melbourne but would love to get involved – will your projects ever go interstate?
Although we don’t have a site interstate at present – we encourage you to watch this space!
What Stamp Duty or First Home Buyer concessions may be available to me under the Assemble Model?
If successful in the ballot, when signing the lease and paying the 3-month rental bond, you will enter into a Contract of Sale. The Contract of Sale gives you the right, but not the obligation, to purchase the apartment at the end of the lease term. By entering into the Contract of Sale prior to construction commencing, you may be eligible for the OTP concession. As a result, if you are a First Home Buyer, the purchase price is less than $600,000 and you are eligible for the FHB duty exemption you will pay zero Stamp Duty if you decide to purchase the apartment at the end of the lease term.
What incentives are provided if I’m a home buyer who has bought previously?
If you are a home buyer (who has bought previously) and are eligible for the PPR duty concession you will pay a reduced rate of Stamp Duty if you decide to purchase the apartment at the end of the lease term.
Are pets allowed?
Yes, your fury family members are welcome.
Can I paint a wall?
Yes, you are able to make modifications to your home. You just need to let us know in advance and if you decide to leave then you will just need to change it back to its original condition.
Can I hang pictures?
Yes, however if you leave you will just need to make good any damage.
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