When it's time to finalise the sale to the tenant 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 sale 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.

Additionally, In the final contract of sale, the total amount of all weekly contributions paid by the tenant up until the sale date will be repaid by the Investor to the tenant in in the form of the tenant's deposit.

Here are the CAGRs used to calculate the price ranges.

ROCE is calculated as per the end of the above selected year. Its is based solely on your initial deposit amount against the total cashflow received, after interest, plus the future sale price range and appreciation therein.

The ROCE assumes an interest only mortgage with the above stated rate, and is further enhanced by the option to immediately send the extra cash flow from the tenant's weekly contributions to a mortgage offset account, thereby reducing interest expenses and increasing returns.

Other than interest on the mortgage, the default ROCE calculation does not account for any transaction or ownership costs such as stamp duty, property management fees, insurances, or resale commissions. These costs can be added in the advanced settings. Disclaimer: calculation errors may occur; Please make your own calculations or speak with your Authorised Channel Partner.