ANZ Institutional executive director John Hudson concedes people from generation Y and beyond have struggled as the size of home deposits has grown rapidly.
“As property prices have increased, that 10 per cent deposit becomes a material number,” he says.
“[Then] to get the home loan you probably need 20 or 30 per cent. And 20 or 30 per cent now, of six hundred thousand dollars, is a lot of money.”
Assemble’s model, according to Daff, offers budding homeowners a five-year lease plan, at the conclusion of which the renters are able to buy the property for a contractually agreed price. The group also offers a not-for-profit “financial coaching” service open to all renters/potential buyers.
“We get them into a system which is opt-in for them,” he says. “They don't have to participate if they choose not to.”
The first test of the model is a $A60 million apartment tower project in Melbourne due to start construction in 2019.
“We've got over a thousand people registered to participate in the first project,” Daff says. “We're really confident this is going to be a model which has got some deep appeal.”
Hudson says the model has ANZ’s support.
“We think it's just a fair equitable way to help part of the community to get into home ownership,” he says.
You can watch the video above to find out more.
Nick Higginbottom is a bluenotes contributing editor at ANZ