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Homebuyers > Price of Home

PublicSquare will help you negotiate the initial home value.

If the property you have selected is brand new or yet to be settled, the initial home value will usually be the same as the price that PublicSquare or the participating owner has agreed to buy it for on your behalf.

if the property is being bought off the plan, and the contract price was agreed to by PublicSquare or the participating owner some months ago, it may be reasonable to expect a slight price increase by the time it comes to sign your lease.

Wherever relevant, we will make sure you get an independent valuation report to help you make an informed decision about the initial home value.

Ultimately you will always get the final say on whether you agree with it and want to proceed.

After four years, when it’s time to complete your purchase, an independent valuer will assess the property value again according to the prevailing market conditions. The sale price will be the property value stipulated by the valuer or the Initial Home Value plus 5% annual capital appreciation, whichever is higher.

If either party disagrees with the valuation, there will be options under the lease for ordering a second opinion and taking the average of the two.

For reference, Australia's national average is 6.8% for houses and 5.9% for apartments (CoreLogic, 1993-2018). However, it could be higher or lower during your lease.

If you're worried about the growth of your property dipping under 5% per year during your lease, just remember that you control when you purchase the property within a 4-7 year timeframe, so you can keep an eye on housing prices and exercise your option when it makes sense to you.

Regardless of whether you're renting-to-own or obtaining a traditional mortage, fluctuating property prices is a risk you should carefully consider.

For a complete picture of the costs involved with PublicSquare, we recommend checking out our calculator

Updated on: 26/11/2023

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