We’ve included a selection of Frequently Asked Questions below, and will continue to expand this list over the course of our consultation process.
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 via two your choice between two rent structures over the 5-year lease term: incremental rent (commencing rent in year 1 with 2.5% increases per year) and flat rent (fixed rent in each year). Both rent structures result in approximately the same rent over the 5-year lease term. This means you will not be paying any more than you would for an apartment of comparable quality, just around the corner. If your home does not live up to your expectations, you can exit the lease or decide not to purchase at any time. The Assemble Model, therefore, offers more flexibility and no downside, compared to a ‘rent-to-buy’ model.
What are the fees 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, simply pay $1 fee and a 3-month rental bond. The bond is equal to 3 months incremental rent, no matter which rent structure you select.
Am I allowed pets in my apartment?
Absolutely – the more and the furrier friends the better.
I don’t live in Melbourne but would love to get involved – will your projects ever go interstate?
Our vision is to grow and expand our communities and provide more accessible and well-designed housing for more Australians, which includes expanding interstate. Although we don’t have a site interstate at present – we encourage you to watch this space!
HOW IT WORKS
Does the rent I pay over the 5-year lease contribute towards the purchase price of my home?
Regardless of the rent structure you choose, the rent paid over the 5-year lease is a market-rate rent and is not applied to the purchase price (providing you with the flexibility to decide whether or not to proceed with the purchase).
What happens if the market value of my home is higher than the purchase price at the end of the 5-year lease?
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, do I enter a standard mortgage and if so, when do I have to pay the deposit?
If you decide to purchase your home, you will need to apply for a mortgage as you would anywhere else and put down your deposit at the end of the 5-year lease – i.e. all the more time to save!
Does the 3-month bond I already paid contribute to my deposit at the end of the 5-year lease?
Yes, that’s correct. The 3-month bond you paid, minus any cost required to repair any damage to the apartment, is returned to you and can be put towards your deposit.
What if my circumstances change during my 5-year lease? Can I rent out my home or will it be handed onto someone else?
Yes, you can sublet your entire apartment for up to 2 years (in case you land your dream job in London!) And if you love London so much that not even your cosy apartment can coax you back home – then we’ll offer your place to the next person in line (under the same terms).
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.
Can I get the 3-month bond back if my circumstances change?
Yes absolutely! This is a refundable amount that is held by the Residential Tenancies Bond Autority (RTBA) much like a standard rental bond (minus any cost required to repair any damage to the apartment). You can exit the lease as usual after the first 12 months if your circumstances change, or you simply change your mind.
What are the steps in the sign-up process?
- Sign-up to our registrations of interest online.
- You will receive information regarding next steps including a link to register your attendance at our first round of Community Presentations.
- Attend Community Presentation 1 to learn more about the Assemble Model, hear about 393 Macaulay Rd, submit your feedback via a survey and have the opportunity to raise any questions with our team.
- Receive further correspondence from the Assemble team after attending Community Presentation 1 and register your attendance for Community Presentation 2.
- Attend Community Presentation 2 where you’ll get the opportunity to see the final design, price lists and the results of feedback from the survey.
- From here, you will be provided with more information on how to submit an application for your apartment preferences 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 Community 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
What is the construction period for 393 Macaulay Rd, Kensington?
We anticipate that construction will take 2 years, and as such 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.