INITIAL HOME VALUE

$700,000

$500,000

$1,000,000

HOUSE OR APARTMENT

Historically, houses have appreciated in value more quickly than apartments, so we’ve structured our future pricing ranges accordingly.

YEAR YOU COMPLETE PURCHASE

We estimate that most tenants will require around 6 years to save up enough deposit to complete their purchase

WEEKLY RENT + CONTRIBUTIONS

How is this calculated? →

ITEM	AMT.
(+) Estimated Weekly Rent (Yr-1)
(+) Estimated Weekly Contribution (50% of Yr-1 Rent)

The weekly rental component functions like that of a standard rental property, with a licensed property manager conducting an annual rental appraisal and adjusting the rent in line with market conditions and local tenancy laws. However, under PublicSquare’s model, any increase is capped at a maximum of 4% p.a.

GUARANTEED PURCHASE PRICE RANGE

How is this calculated? →

When you're ready to purchase your home between years 4 and 8 of your tenancy agreement, we’ll ensure a seamless and transparent process:

Guaranteed Purchase Price Range:

For brand-new or off-the-plan properties, we add 3% to the initial home value to account for the construction period (typically 6-8 months), covered by the investor. This caps the property’s value increase during construction, protecting you from delays in your future purchase price. From there, we calculate the minimum and maximum purchase price using compounded annual growth rates (CAGRs), as outlined in the table below.

Final Price Within Range:

When you exercise your purchase option, an independent valuer will assess your property based on current market conditions. The final price will fall within the predetermined range for that year and will never exceed the independent valuation. If the market value exceeds the maximum purchase price, you benefit from the appreciation, gaining greater equity in the property upon purchase.

Contributions as Deposit:

Your weekly contributions will be fully credited as your accumulated deposit in the final contract of sale. This amount may cover part or all of your deposit, easing your transition to a mortgage.

CAGR Explanation:

The table below details the CAGRs used to calculate price ranges, which vary between houses and apartments. Note that while Australia’s average CAGR for houses was 6.8% from 1993–2018 (CoreLogic), actual rates during your tenancy may differ.

TIMEFRAME	CAGR RANGE
Years 1, 2, 3
After 3 Yrs (in Yr 4)
After 4 Yrs (in Yr 5)
After 5 Yrs (in Yr 6)
After 6 Yrs (in Yr 7)
After 7 Yrs (in Yr 8)

TIMEFRAME	CAGR RANGE
Years 1, 2, 3
After 3 Yrs (in Yr 4)
After 4 Yrs (in Yr 5)
After 5 Yrs (in Yr 6)
After 6 Yrs (in Yr 7)
After 7 Yrs (in Yr 8)

COST SAVINGS VS MORTGAGE

These estimates assume you are a first home buyer eligible for government grants and stamp duty exemptions. If you are not a first home buyer, or your property does not qualify, your upfront and total cost savings through Rent-to-Own during the period may be significantly higher than shown. We recommend conducting your own research and seeking independent financial advice.

How is this calculated? →

Mortgage Interest Rate For Comparison

6.5%

5.5%
6%
✓
6.5%
7%
7.5%

TOTAL IN PERIOD	RENT-TO-OWN	MORTGAGE
Upfront Payments
Weekly Payments
Ownership Costs

Rent-to-Own Assumptions:

Upfront costs include a 1.1% Kickstarter Fee. A rental bond (typically $2,000) is also payable but not included in the calculation. Weekly payments are based on the estimated market rent for the home, plus a 50% weekly contribution that accrues towards the homebuyer’s deposit, as well as an annual rental portion increase cap of 4%, and a $22 per week fixed customer support fee.

Mortgage Assumptions:

Upfront costs are based on a 95% Loan-to-Value Ratio (LVR) mortgage and include a 5% deposit, 4% Lenders Mortgage Insurance (LMI), and $3,000 government fees. Weekly payments are based on principal and interest repayments over 30 years. Ongoing ownership costs are estimated at 0.65% of the property’s initial value per year (covering council rates, insurance, and maintenance), with 4% annual inflation.

Mortgage upfront payments exclude construction-period costs (such as rent and interest), which typically add a great deal of costs. Stamp duty is also excluded from the calculation. However these two costs may be partially or fully offset by government grants and exemptions depending on the property and buyer eligibility.

General:

Total costs assume purchase at end of year selected. Additional legal and miscellaneous costs may apply under both scenarios but are not included in these estimates. These calculations do not seek to understand accrued equity benefits in property. Buyers should seek personalised financial and legal advice.

FEES

$22/wk — Unlimited Support During Your Tenancy

Note: These fees have already been included in the 'Costs Savings Vs Mortgage' estimates