Introducing PublicSquare Plus
HOMEBUYER

How it Works: Rent-to-Own Homes by PublicSquare

Author
PublicSquare Team
Last Updated: Sep 24, 2024
⏱️ 6-min read
Updated:‏‏‎ ‎
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Get pre-approved

1. Get pre-approved

With Rent-to-Own Homes by PublicSquare, you can secure your dream home for just 1.1% of the purchase price, then live in the property while you build up your deposit.

Begin your journey with a quick 5-minute pre-approval form. This step, which won’t affect your credit score, involves filling out a form with basic information about your financial and employment situation.

Once you complete this step and receive pre-approval, you'll either be added to our waiting list, ready to apply for any property that fits your needs, or prompted to book a call with us, depending on how busy our current workload is.

This process is the first step towards finding your new home, efficiently preparing you for upcoming opportunities.
Apply for homes

2. Refundable fee & additional info

We may ask you to pay an access fee, which is fully refundable if you choose not to proceed or after you move in. Once paid, we’ll assist you in providing additional information and documents, such as payslips and bank statements. The step is similar to a rental application, however, our team may also need a licensed broker to take a look over your details to ensure you have the financial capacity to complete your home purchase in years 4-8 of the lease.
Lock in the deal

3. Property selection and Investor matching

Once we approve your application, it’s time to select some properties. With thousands of packages to choose from, our team will work with you to find the best options for your needs. Next, PublicSquare will tap into its investor networks to match an investor with you and your property. While finding an investor isn’t guaranteed and timelines may vary, we’ll keep you fully updated on your progress so you can plan ahead.
move in and build deposit

4. Move in & build up deposit

Once an investor approves your application and property, you will pay the 1.1% Kickstarter Fee, and rental bond, and move into your new home as soon as it’s ready. The move-in timing depends on your chosen property type. For off-the-plan properties, it aligns with construction completion. After settling in, you’ll start making additional payments: 50% on top of your weekly rent. This acts as your weekly contribution toward homeownership. For example, if your rent is $600 per week, you’ll add $300, bringing your total weekly payment sin year 1 to $900. These extra contributions will build up as part of your deposit when you purchase the home. The rental portion of your payment is subject to rental increases capped at 4% p.a but the contribution amount is always fixed until you complete your purchase.
Complete your purchase

5. Switch to a mortgage

When it's time to finalise your purchase of the home, usually in years 4 through 8 of the tenancy agreement, an independent valuer will conduct a full valuation of the property based on the prevailing market conditions. The purchase price will then be determined by applying a compounded annual growth rate (CAGR) to the initial home value, with the final price set at the highest possible amount within each year’s range, without exceeding the independent valuation. In simple terms, there is guaranteed price range you can buy the home for when you're ready, and the total amount of all weekly contributions you've made will form your deposit. For a detailed breakdown of guaranteed future purchase prices, please refer to our online calculator.
Complete your purchase

6. Opt out of property

If during the purchase option period, you cannot obtain a mortgage, you have the option of requesting a sale of the property in the open market (which is the best option after 4 years). By requesting a sale of the property in the open market, you can recoup up to 100% of your contributions or more if the property has performed well. As part of our Future Mortgage Guarantee, if you can't secure a mortgage, we will sell the property without charging you a sales commission.

What homebuyers are saying

Free to apply.
No credit impact.

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Tel: 1300 418 857 | Head Office: 71 Eagle Street, Brisbane 4000

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Terms, fees, conditions, and wait times may apply. PublicSquare Clients may be required to pay fully-refundable access fees. Government grants and schemes are subject to change and eligibility. PublicSquare® is a registered trademark 2315715 of PublicSquare Technology Pty Ltd in Australia. PublicSquare, or "us" or "we", may denote PublicSquare Technology Pty Ltd or its affiliated property vendors and/or owners. PublicSquare, the company, holds Queensland real estate licence no. 4555627. PublicSquare, the company, acts on behalf of property owners and vendors, usually under marketing agreements. PublicSquare adheres to all national, state, and territory laws and regulations and does not currently facilitate 'rent-to-own' or 'rent-to-buy' style arrangements for real estate outside of Queensland or New South Wales. Property images may be artist's impressions or digitally enhanced for visual clarity and should not be considered an exact representation; For more accurate representations, please refer to builder specifications or in-person inspections. Words such as 'Guaranteed', 'Fixed Under Contract', or similar such expressions are subject to, and pertain only to, terms set via legally binding agreements. All dollar figures associated with property listings are estimates used for informational purposes only, and subject to binding agreements. All offers and terms are are used for informational purposes only, and are subject to binding agreements and availability of counterparties. PublicSquare is a real estate company, not a lender or financial advisor, and does not guarantee mortgage obtainment. PublicSquare may refer Homebuyers and Investors to Licensed Mortgage Brokers but does not provide brokerage or lending services directly.  'Rent-to-own customers do not own properties until switching to a mortgage and completing their purchase, which may incur LMI and stamp duty. 'Renting-to-own', 'Renting-to-sell', and buying real estate in general, carries financial risks. Please seek independent financial and legal advice before making decisions about housing and investment; Neither the content on this website, nor any communications with PublicSquare or it representatives, should be used as the sole basis for decision-making about housing and investments. For more information, please refer to the disclosure statement or contact us.