FAQs

What initial payments are involved in participating in Assemble Futures?

An initial payment of $500 will be required to hold your apartment while you review and sign your documents.

To secure a 5-year lease with the opportunity to buy your home at the end of your lease, you pay a 1-month rental bond (less the $500 holding deposit) 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 rental bond.

Does the 1-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.

Can I buy earlier within the 5-years?

The pathway is designed to give you the best opportunity to achieve your home ownership goals. Based on research and advice from our partners at ANZ, it takes on average, 7 years to save for a home deposit, if starting with only $1 in your bank account.  Assemble Futures is modelled around this and therefore it is not possible to settle earlier in the lease period.

What is the difference between Assemble Futures and a ‘rent-to-buy’ model?

All rent-to-buy arrangements include two main components:

+    The ‘rent’ part—where a person lives in a property for a fee (including rent and other payments for occupying the property); and
+    The ‘buy’ part—where a person enters into a contract that provides the right to purchase the property. Rent-to-buy payments are then made, which can include a deposit and other payments.

Typically, a ‘rent-to-buy’ model requires residents to pay rent and other payments during their lease period with those other payments applied toward the purchase price. If residents decide not to purchase, in most cases, they may lose their deposit and any ‘other payments’ made. This isn’t fair and in recognition of this the Government of Victoria recently passed new laws under the Sale of Land Amendment Act 2019 (the Act), that prohibit these types of rent-to-buy arrangements whilst also permitting certain arrangements that they deem fair.

The Assemble Futures model is a ‘rent-with-the-option-to-buy’ model developed to provide a fairer approach to home ownership whereby your rental and purchase price are fixed and agreed upfront, so you have clarity around your fixed rental costs as you save towards your home deposit. You also have the option but not the obligation to purchase your home at the end of your five-year lease. Your rent is not applied to your deposit or purchase of your home and if your home does not live up to your expectations, you can exit the lease after the first 12 months or decide not to exercise your option to purchase without financial penalty. It is for these reasons that Assemble Futures is a permitted arrangement under the Act with all Assemble Documentation complying with the prescribed requirements of the Sale of Land (Exemption) Regulations 2020 (Vic) so as to permit this fairer approach to home ownership.

Can I sublet a room within my apartment?

While we do not permit short-term rentals such as Airbnb, you can with Assembles consent sublet a room within your apartment (but not the entire apartment) whilst you remain living there. You can do this for more than 2 years, but not less 12 months.

If I love my home and decide to purchase it, how and when do I buy the property?

You will be able 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.

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 potentially to your benefit.

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 through Assemble Futures?

When signing the lease and paying the 1-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 also entering into the contract of sale prior to construction commencing, the contract is able to be treated as an off-the-plan contract of sale and you may be eligible to receive the off-the-plan concession.

To receive the off-the-plan duty concession, you must be eligible for either the first home buyer duty exemption, concession or reduction or the principal place of residence (PPR) concession.

First home buyer duty exemption, concession or reduction
If you are an eligible first home buyer, the purchase price (OTP dutiable value) is less than $600,000, and you live in your apartment as your principal place of residence for a continuous period of 12 months following settlement, you may be eligible for full duty exemption. If the dutiable value falls between $600,001 and $750,000 a concession will apply on a sliding scale.

Principal place of residence concession
If you are not an eligible first home buyer, the purchase price (OTP dutiable value) is less than $550,000, and you live in your apartment as your principal place of residence for a continuous period of 12 months following settlement, you may be eligible for the off-the-plan duty concession.

First home owners grant
If you are an eligible first home buyer, the purchase price is less than $750,000, and you live in your apartment as your principal place of residence for a continuous period of 12 months following settlement, you may be eligible for the first home owners grant of $10,000.

For further information on the various concessions available please see the following links:

+     Off-the-plan duty concession
+     First home buyer duty exemption, concession or reduction
+     Principal place of residence (PPR) concession
+     First home owners grant

Please note, this FAQ provides general guidance as to the various concessions available and eligibility criteria but does not constitute formal advice. It is your responsibility to find out whether or not your particular circumstances make you eligible for the first home buyer duty exemption, concession or reduction, principal place of residence concession or first home owners grant.