Introducing PublicSquare Plus

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

PublicSquare Team
Last Updated: May 05, 2024
⏱️ 6-min read
Updated:‏‏‎ ‎
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Get pre-approved

1. Get pre-approved

Begin your journey with a quick and straightforward 5-minute online pre-approval process. This step, which won’t affect your credit score, involves filling out a form with basic information about your financial and employment situation.

Once you complete this step and receive pre-approval, you'll be added to our waiting list, ready to apply for any property that fits your needs. This process is the first step towards finding your new home, efficiently preparing you for upcoming opportunities.
Apply for homes

2. Apply for homes

We'll keep you informed about available properties through email and SMS. Found a property you like? You can apply using a single form for all applicants. If your first choice doesn't work out, reapply with the same details.

The application will require additional documents like bank statements and employment references. This process is more detailed than a typical rental application but simpler than applying for a mortgage. It's not a finance application, so it won't impact your credit score.
Lock in the deal

3. Lock in the deal

Once we approve your application, a dedicated Application Manager will schedule a one-hour video call with you. This session is designed to address all your queries and walk you through various scenarios using our online calculator, ensuring you have a comprehensive understanding of our rent-to-own homes product.

If you're happy to proceed, the next step involves consulting a solicitor. They will help you clarify any legal aspects and confirm your understanding of all terms and conditions. Together with your solicitor, you'll sign all the necessary paperwork, including an Agreement to Lease and a Call Option Deed. At this point, you will also be required to pay your 3% kickstarter contribution to the property owner's solicitor or agent where it will be held securely until you move in.
move in and build deposit

4. Move in & build up deposit

You can move into your new home as soon as it is ready. The timing of your move-in varies based on the type of property you choose. For pre-existing homes, the move-in date depends on the lease terms of the current tenants. In the case of off-the-plan properties, your move-in will coincide with the completion of construction.

Once you've settled in, you'll begin making additional payments: 50% on top of your regular rent each week. This serves as your weekly contribution towards home ownership. For instance, if your rent is $600 weekly, you’ll add an extra $300. These contributions, combined with your initial 3% Kickstarter payment, will accumulate and go towards your deposit when you decide to purchase the home. For a detailed breakdown of these payments, refer to our online calculator.
Complete your purchase

5. Switch to a mortgage

You have the flexibility to transition to a mortgage and finalize your home purchase anytime within a 4 to 7-year timeframe. The final price of the home will be set by an independent valuer and will be the higher of either a minimum 5% annual growth or the prevailing market value.

This method ensures a fair balance between both parties' interests, aligning with Australia's historical average house growth rate of 6.8% per annum from 1993 to 2018 (as per CoreLogic data). It also protects the property owner's investment, considering your discretion over the purchase timing within the allotted period. Importantly, all your contributions until that point will be credited against the purchase price, contributing to your deposit.
Complete your purchase

6. Opt out of property

If plans change, and you no longer want to retain the property, you also have the option of finding another family to takeover your agreement (which is the best option during years 1-4) or requesting a sale of the property in the open market (which is the best option after 4 years).

By requesting a sale of the property in the open market, you can recoup up to 100% of your contributions minus some 3rd party advertising costs for selling the property. As part of our Future Mortgage Guarantee, if you can't secure a mortgage, we will sell the property without charging you a commission.

Success stories

Free to apply.
No credit impact.