When you're ready to purchase your home in years 4 through 8 of your tenancy agreement, we'll help to ensure a smooth and transparent process:
Fair Market Valuation:
An independent valuer will conduct a comprehensive assessment of your property based on current market conditions. This guarantees that the purchase price is both fair and reflective of the property's true value.
Minimum and Maximum Price:
The minimum and maximum purchase price will be calculated using a compounded annual growth rate (CAGR) applied to the initial home value. The final price will be set within each year's range, ensuring it never exceeds the independent valuation.
Contributions Become Deposit:
In your final contract of sale, the total amount of all the weekly contributions you've made will be fully repaid to you in the form of your accumulated deposit. This repayment will form part of, or even cover your entire deposit, allowing you to comfortably switch to a mortgage.
Opportunity for Sharing Capital Appreciation
If the market value of your home exceeds the maximum purchase price, you will benefit from this appreciation. This means that any increase in property value above the price range will translate directly into greater equity for you in the property after the purchase is complete.
Below are the CAGRs we will use to calculate the price ranges. Please also note that while Australia's average CAGR for houses between 1993-2018 was 6.8% (Corelogic), it may be higher or lower during your tenancy.
*CAGR ranges may differ for apartments.