We’ve included a selection of FAQ’s below, but please feel free to get in touch with us if you have any other questions via [email protected]es.com or 1300 181 295.
THE ASSEMBLE MODEL
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 lawyers 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. As explained above, 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 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?
If you decide to purchase your home at the end of the 5-year lease, you will need settle on the property as you would any other property, via a mortgage (i.e. debt) and deposit (i.e. equity).
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 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.
The information above is indicative only and does not form stamp duty advice. While care and consideration has been taken in the creation of the material on this website, we do not warrant, represent or guarantee that the material published on this website is in all respects accurate, complete and current. We recommend all those interested in the Assemble Model to seek their own independent advice and visit the website of the State Revenue Office for more detailed information relevant to their individual circumstances. The above explanation and interpretation of the stamp duty laws in Victoria is based on the provisions of the Duties Act 2000 (Vic) as at 21 March 2019.
What are the steps in the sign-up process?
- Sign-up to our registrations of interest.
- Provide feedback via our surveys to help build a community you want to live in
- Attend our Assemble Model presentation or watch online
- Attend our project presentations or watch online to see the survey results, design, price lists, legal documentation and next steps
- Meet the architects or one of the Assemble team in to ask any questions
- From here, you will be provided with more information on how to submit an application for your preferred apartments and details on the ballot process to come.
What if I can’t attend the Community Presentations?
Just let us know via email or phone and we’ll send you a link to view a recording of the presentations online.
I don’t want to miss out, how can I place myself in the best position to secure an apartment?
Although we can’t guarantee everyone will get their first preference, by following the steps in the sign-up process outlined above and keeping up to date with our correspondence, you will place yourself in the best position to secure one of your top preferences.
393 MACAULAY RD. KENSINGTON
Are there any apartments currently available for 393 Macaulay Rd?
Although 393 Macaulay Rd is currently fully subscribed, some of our residents’ circumstances may change, in which case there is a chance that some apartments may become available in the future. If you would like to sign-up to the wait list, please submit your details on the 393 Macaulay Rd, Kensington project page.
What is the construction period for 393 Macaulay Rd?
We anticipate that construction will take 2 years, and we’re aiming for residents to move into the community in late 2020.
Who will provide the complimentary financial coaching that you offer?
Our complimentary financial coaching will be provided by Assemble and you will be able to meet with your financial coach on a regular basis to discuss your budgeting and savings plan.
What will be the cost of the services provided by Assemble to residents?
Our aim is to support our residents on their pathway to home ownership by providing them with services that make their lives more convenient, enjoyable and cost-effective. Some services, such as community management and financial coaching, will be provided free of charge. Other services, such as apartment cleaning and dry cleaning, will be optional and charged on a per-use basis. More detail on the type and cost of services will be provided in due course.
Can’t find the answer to your question? Please don’t hesitate to get in touch via [email protected] or 1300 181 295.