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 be added to our waiting list, ready to apply for any property that fits your needs. This process is the first step towards finding your new home, efficiently preparing you for upcoming opportunities.
Apply for homes

2. Apply for homes

We'll keep you informed about available properties through email and SMS. If your first choice doesn't work out, you can reapply for other ones with the same details.

The application will require additional documents like bank statements and employment references. This process is more detailed than a typical rental application but simpler than applying for a mortgage. It's not a finance application, so it won't impact your credit score.
Lock in the deal

3. Lock in the deal

Once we approve your application, a dedicated Application Manager will schedule a thirty minute call with you. This session is designed to address all your queries and walk you through various scenarios using our online calculator, ensuring you have a comprehensive understanding of our rent-to-own homes product.

If you're happy to proceed, the next step involves signing an onboarding pack and consulting a solicitor.

The solicitor will help you clarify any legal aspects and confirm your understanding of all terms and conditions. Together with your solicitor, you'll sign all the necessary paperwork, including an Agreement to Lease and a Call Option Deed.

At this point, you will also be required to pay the Kickstarter fee equalling 1.1% of the initial home value (incl. GST). This fee is fully refundable if you don't end up proceeding with your agreement.
move in and build deposit

4. Move in & build up deposit

You can move into your new home as soon as it is ready. The timing of your move-in varies based on the type of property you choose. For pre-existing homes, the move-in date depends on the lease terms of the current tenants. In the case of off-the-plan properties, your move-in will coincide with the completion of construction.

Once you've settled in, you'll begin making additional payments: 50% on top of your regular rent each week. This serves as your weekly contribution towards home ownership. For instance, if your rent is $600 weekly, you’ll add an extra $300. These contributions will accumulate towards your deposit when you decide to purchase the home.
Complete your purchase

5. Switch to a mortgage

When it's time to finalise your purchase of the home 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. Additionally, In the final contract of sale, 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 plans change, and you no longer want to retain the property, 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 minus some 3rd party advertising costs and commissions. 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...

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Terms, fees, conditions, and wait times may apply. Government grants and schemes are subject to change, availability 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.