What is Assemble Futures?

Assemble Futures (previously known as the Assemble Model) offers a different pathway to home ownership that bridges the gap between renting and buying. It’s founded on the idea that while you might not be in a position to purchase your home today, you will be later on with the right tools and coaching.

Assemble Futures enables you to move in and rent your home while you save to buy it.  Assemble offers the support you need to achieve your savings goal and be in the best position to buy your home at the end of your lease period.

You can read more here

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 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 market-rate rent and is not applied to the purchase price.

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.

What if I can’t attend the Community Presentations?

If you can’t attend one of our planned presentations, we encourage you to speak directly with our relationships team. We’re happy to host you for a coffee or come to a place that’s more convenient for you, or happy to simply chat via phone or video call.

What are the steps in the sign-up process?

  1. Meet with the Relationships team to determine which Assemble building, and apartment, best suits your needs
  2. Pay a $500 holding deposit – this will take your preferred apartment off the market
  3. Sign your documents, and pay the balance of one month’s bond; this money is held with the RTBA and will act as your bond, when you move into your apartment – you will be signing a lease, and a contract for sale; both of these documents can be provided to you for review before paying your deposit
  4. Your apartment will remain off market for 1 week while you complete your due diligence.
  5. Return your contracts with the bond payment (less $500 deposit) and you’re on the pathway to home ownership.

What if my circumstances change during the 5-year lease? Can I sublet my my home?

If love or life takes you elsewhere, you can sublet your entire apartment with Assembles consent for up to 2 years in aggregate. We don’t allow subletting for more than 2 years and no less than 12 months to discourage short-term rentals within the community.

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.