Resale Price and Capital Appreciation

1 min. readlast update: 02.04.2024

The final sale price in the Rent-to-Sell agreement will be based on an independent valuation by a licensed valuer, or calculated as the Initial Home Value plus 5% compounding capital appreciation per annum, whichever is higher. 

This method ensures that investors benefit from market growth while also having a safeguard against potential market declines.

The independent valuer assesses the property value according to prevailing market conditions at the time of finalizing the contract of sale to the tenant and there are mechanisms in the lease for dealing with disputes over-valuations

The tenant shall pay for the costs of the initial valuation, and if applicable, the dissenting party shall pay the cost of the 'second opinion' valuation.

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