122 Roseneath Street, Clifton Hill.The Assemble Model

So, how does it work?

Residents sign a 5-year lease with the option to purchase their home for a fixed price at the end of the term.

The purchase price is agreed up front and is calculated as the current price with fixed 1.75 per cent increases per year over 7-years (2 years of construction + 5 years of leasing).

The lease and option to purchase is secured by paying a refundable amount of 1 per cent of the purchase price prior to the start of construction (e.g. $5k for a $500k apartment).

Over the 5-year lease period, residents are supported with not-for-profit financial coaching services and bulk-buying initiatives to leverage economies of scale.

After five years, residents can exercise the option to purchase the property at the fixed price, with the 1 per cent refundable amount contributing towards the purchase price.

“By locking in the price today, you are protected from rapid property price increases,” Daff said.

“You have seven years to save towards your deposit and five years to see if your home lives up to your expectations.”

“Get to know your home, your neighbours and community before you decide to buy, and you can exit the lease or not proceed with the purchase at any time.”

Assemble put these ideas into practice through its first development in partnership with Wulff Projects and Icon Developments in Roseneath Street, Clifton Hill, comprising 48 apartments and 18 townhouses.

With 80 per cent of homes selling on the first day of sales, 95 per cent of which to owner-occupiers reinforced an eagerness in the market for buyers to be assured of stability in long-term housing and community potential.

Roseneath Street also received the 2016 Victorian Premier’s Design Award for excellence in Service Design and construction for the project is on track for completion in August 2018.

Source: theurbandeveloper.com