First super-backed Build to Rent To Own project completes
Australia’s largest industry superannuation fund, AustralianSuper has seen the first results of its signatory status to the Housing Accord with the completion of what is regarded as the first superannuation-backed Build-to-Rent-to-Own development in Melbourne.
The development, in Kensington, is the result of a partnership between AustralianSuper and developer/operator, Assemble.
The model allows residents to secure their rent and purchase price for up to five years, with the option to buy their home at any stage at an agreed value. Throughout the pathway, they are offered optional money coaching support to help them achieve their home ownership dreams.
AustralianSuper has made a nearly $500 million equity commitment to Assemble BTRTO projects, with the expectation to deliver more than 1,400 homes by 2027.
Construction on a second BTRTO development in Melbourne’s Brunswick is underway with further projects in Brunswick, Coburg and Footscray are also in the pipeline.
The joint announcement by the two entities said additional interstate opportunities are being considered to give more Australians access to this innovative housing solution.
Since it’s owned by Australia’s largest union super fund, I assume the rent and purchase price will be well below market rate, but only available to union officials and their friends.
And what is the rate of return for Aus Super?
This is just the start of the government doing industry super favours so that they will implement these schemes on their behalf, effectively using peoples super money for government projects. What is next?
“they are offered optional money coaching support to help them achieve their home ownership dreams.”
Sound a lot like AFSL Financial Advice to me?
But now Industry Super call it money coaching with zero AFSL compliance I bet.
Money Coaching provided by Uneducated, Unqualified BackPacker call centres.
All paid for by Industry Super Hidden Commissions.
“Only to benefit members” so says the lies.
Sounds like a free call option on the housing market to union selected tenants underwritten by unknowing Aussie Super members.
Nothing to see here, no possibility of corruption, no breach of fiduciary duty by the trustee no favourtism nor vested interests.