Introducing PublicSquare Plus
HOMEBUYER

How it Works: Rent-to-Own Homes by PublicSquare

Author
PublicSquare Team
Last Updated: Sep 24, 2024
⏱️ 6-min read
Updated:‏‏‎ ‎
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Get pre-approved

1. Pre-approval

With Rent-to-Own Homes by PublicSquare, you can secure a home for just 1.1% of the purchase price, then live in the property while you build up your deposit.

It all starts with our 5-minute pre-approval form. This step, involves filling out a providing some basic information about your household and financial circumstances and will not affect your credit score.

If you get pre-approved, you'll be prompted to book a call with us, to learn more about how the product works and decide if you want to tale the next step.
Apply for homes

2. Full application

At this stage, you may be asked to pay a fully refundable access fee which is always refundable to you—whether you decide not to proceed later on, or after you move into the home.

Once the fee is paid, we’ll guide you through providing the necessary documents, such as payslips and bank statements.

This step is similar to a rental application, but with an added layer: we involve a licensed mortgage broker to review your details, ensuring you have the financial capacity to complete your home purchase in years 4 through 8 of your tenancy agreement.
Lock in the deal

3. Investor & property matching

Once you’re fully approved, PublicSquare will tap into its investor network to match you with an investor and a property that fits your preferences and budget.

As the homebuyer, you lead this home selection process. With thousands of homes to choose from—built by some of Australia's largest and most trusted builders—Our team will give you all the support you need in finding the perfect one.

While a successful investor/property match isn’t guaranteed, we’ll keep you fully informed at every step of the way so you can plan ahead.
move in and build deposit

4. Move in & build up deposit

Once you have been matched with an investor and property, you will pay a 1.1% Kickstarter Fee to PublicSquare to lock -in the deal, plus a standard rental bond.

After that you'll be able to move into your new home as soon as construction is complete. For house and land packages, that usually takes around 6-9 months giving you ample time to finish your existing lease and plan for the move.
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After moving in, you’ll begin making additional 50% contributions on top of your weekly rent. This extra amount goes directly toward building your future deposit. For example, if your rent is $600 per week, you’ll contribute an additional $300, making your total weekly payment in Year 1 $900.
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The rental portion of your payment may increase over time—just like regular rentals but capped at a 4% increase per annum—however, your contributions will remain fixed throughout the term until you purchase the home.
Complete your purchase

5. Switch to a mortgage

When it's time to finalise your purchase of the home in years 4 through 8 of the tenancy agreement, an independent valuer will conduct a full valuation of the property based on the prevailing market conditions.

The final purchase price will then be determined by applying a compounded annual growth rate (CAGR) to the initial home value, with the final price set at the highest possible amount within each year’s range, without exceeding the independent valuation.

In simple terms, there will be a guaranteed future price range you can buy the home for when you're ready, and the total amount of all weekly contributions you've made when you purchase the home will form your deposit and be deducted from the price.

For a detailed breakdown of guaranteed future purchase prices, please refer to our online calculator.
Complete your purchase

6. Opt out of property

If you’re unable to obtain a mortgage during the purchase option period (years 4 to 8), you’ll have the option to request a sale of the property on the open market.

Under this Future Mortgage Guarantee, we’ll handle the property sale for you without charging any sales commission. You will simply cover a marketing fee for third party costs like photography and listing the property for sale online.  

This gives you the opportunity to recoup up to 100% of your contributions—or even more if the property has increased in value above the future purchase price range.

What homebuyers are saying

Free to apply.
No credit impact.

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Terms, fees, conditions, and wait times may apply. Clients of PublicSquare may be required to pay fully-refundable access fees. Government grants and schemes are subject to change and eligibility. PublicSquare® is a registered trademark 2315715 of PublicSquare Technology Pty Ltd in Australia. PublicSquare, or "us" or "we", may denote PublicSquare Technology Pty Ltd or its affiliated property vendors and/or owners. PublicSquare, the company, holds Queensland real estate licence no. 4555627. PublicSquare, the company, acts on behalf of property vendors and owners, usually under marketing agreements. PublicSquare adheres to all national, state, and territory laws and regulations and does not currently facilitate 'rent-to-own' or 'rent-to-buy' style arrangements for real estate outside of Queensland or New South Wales. Property images may be artist's impressions or digitally enhanced for visual clarity and should not be considered an exact representation; For more accurate representations, please refer to builder specifications or in-person inspections. Words such as 'Guaranteed', 'Fixed Under Contract', or similar such expressions are subject to, and pertain only to, terms set via legally binding agreements. All dollar figures associated with property listings are estimates used for informational purposes only, and subject to binding agreements. All offers and terms are are used for informational purposes only, and are subject to binding agreements and availability of counterparties. PublicSquare is a real estate company, not a lender or financial advisor, and does not guarantee mortgage obtainment. PublicSquare may refer Homebuyers and Investors to Licensed Mortgage Brokers but does not provide brokerage or lending services directly.  'Rent-to-own customers do not own properties until switching to a mortgage and completing their purchase, which may incur LMI and stamp duty. 'Renting-to-own', 'Renting-to-sell', and buying real estate in general, carries financial risks. Please seek independent financial and legal advice before making decisions about housing and investment; Neither the content on this website, nor any communications with PublicSquare or it representatives, should be used as the sole basis for decision-making about housing and investments. For more information, please refer to the disclosure statement or contact us.