Any Questions?

Frequently Asked Questions


This is an invitation to use your investment in a residential property to earn higher, faster, accelerated yields monthly over up to ten years (plus a priority share of future capital growth) compared to the lower net rental yields currently on offer monthly (often net 1.5% to 2.5% pa but sometimes 4% pa or higher).

Net returns vary from property to property and are almost impossible to predict accurately ten years into the future, from a typical residential lease, whilst retaining (and waiting for) all of the uncertain long term capital growth[1].

Under the Assquire system, an investor sells the property to a Mortgage Alternative (MA) buyer (who has a mortgage over your property and a registered lease to protect their contracted interest as buyer) whilst they buy it over a ten year period with a lease to occupy. The investor is not renting it to the MA buyer; they have sold it to them with ten years to pay – this is called a deferred settlement.

You (the investor) receive the higher return monthly along the way because you are sharing capital growth with the MA occupier who has bought the home off you with deferred settlement, and a lease whilst they live in it up to the settlement date. As seller, you forego any excess future capital growth above the pre-agreed price (currently an indexation of around current market value by 1.5% pa) that you will retain under the Assquire® Contract of Sale. The buyer thus enjoys the flip side of the coin – the capital growth above that (if any) and that difference at time of settlement, together with the rights to occupy the property essentially as if it were their own immediately and agreeing to other terms of the contract of sale designed to mitigate your risks and theirs, is why they pay you the average 40-60% higher gross rents today, which are contracted and agreed up front between seller and buyer, and apply unchanged for a period of up to ten years.

Assquire® [2] is a new asset acquisition, financing, management and occupation system delivered to market across two website: this one is for investors and home buyers to explain the Assquire system + the dedicated listings site

The MA buyer does have restricted rights to exit, so they need to be serious about buying your property, just like they do with other properties when taking a mortgage but all or a substantial part of their 5% paid up front is at risk if they do exit, and they are making mortgage like payments (much higher than rent) so they are considered unlikely to do so unless they encounter a material adverse personal event. To use MA and sign an Assquire® contract with an investor, they must be serious about buying the home and must meet our strict credit standards to qualify. This is a Mortgage Alternative – not a rent alternative.


[1] Net yields are almost impossible to quantify because they differ with each property. However CoreLogic RP Data’s July 2016 Monthly Housing and Economic Chart Pack  report records GROSS rental yields for houses at just 3.2% (net rental yields would be much lower) and 4.1% gross rental for units. In Queensland, these are somewhat higher, and our numbers are currently based off an average 4.3% gross yield. Some properties will achieve higher conventional gross rents; some lower.

[2] New Zealand Patent No 582650 granted July 2, 2013; Singapore Patent No 182242 granted October 31, 2012; South Africa Patent No. 2010/00299 granted 29 September 2010; Australian Trade Mark No 1438777 in class 36 registered March 16,2012. Trade marks for Assquire® also registered in thirty other countries including Europe, United States of America, China, Australia and Singapore.


This is a mortgage alternative, not a rental model. Your Mortgage Alternative or MA buyer, once they sign the contracts with you, has bought the home off you, and potentially can move into the property within as little as 7 to 20 days, with a ten year lease during the deferred settlement period (which ends early if they settle early).

The MA buyer pays a higher amount than conventional rent to you. The amount is similar to what they would pay if they were settling in 60 days with a conventional 25 year mortgage, plus their property ownership costs. In return for getting any excess growth over the pre-agreed price at 1.5% plus uplift payment (if applicable), the buyer pays you fixed and flat (but much higher) monthly rent payments under the lease, plus agrees to monthly and moderately annually rising deposit payments until their deposit reaches 10% of the pre-agreed Purchase Price.

See the mortgage comparison tables here for an example for a property with a market value of $500,000 today.


Put simply, the tenant is a buyer. They are buying the home now from you for a fixed pre-agreed ten year price that is very attractive to them, so they will pay you more each month in rent for that privilege, plus a monthly deposit payment to progressively build their equity in the property in the period up to their eventual settlement.

Returns this high for residential property investments are not usually possible, without investors taking development and/or construction risk. This however is normal occupied real estate. Under conventional property investment models, a periodic tenancy will permit tenants with no vested interest in your investment property to occupy it, normally for 6 – 12 months.

Assquire® investor returns are “mortgage + property ownership cost equivalent” receipts that price the Assquire®/ Mortgage Alternative product to home buyer consumers on roughly a like for like basis to a consumer owning a property with a 25 year mortgage plus property ownership costs – but without the usual conventional risks to a consumer buyer who takes a conventional mortgage (and the expensive upfront mortgage insurance no one likes to talk too much to buyers about).

The Assquire system also addresses the shrinking affordability of home ownership in Australia, which has become unaffordable for the majority of would-be first homebuyers. Assquire investors work with them, not against them. The traditional savings based approach of a deposit of 20% of purchase price or more and a mortgage from a local financial institution no longer presents as a feasible model for home acquisition for a large number of people who want to buy a home.

Assquire® (short for asset + acquire) is an internationally patented pre-mortgage product to facilitate those on good incomes to get into home occupation and purchase faster without paying dead money in rent, and to secure a share of future capital growth by doing something simply not possible with a mortgage – live in the home whilst saving a full deposit to qualify later for a mortgage. An up front saving of as little as 5% is required to purchase an Assquire® property from an Assquire investor. This is a pre ‘Mortgage Alternative’ for the home buyer, and a safer higher yielding investment for the investor who relies less on (and doesn’t have to wait for) uncertain future capital growth.

On a $500,000 property, and excluding any personal insurances, MA would (as at September 10, 2017) cost as little as $735 per week, compared to $723 per week for the combined cost of a 25 year Principal & interest mortgage + property ownership costs. To rent this home, a tenant would typically pay around $430 per week in rent (source: Investor comparison model current based on rates as at September 9, 2017. Conventional mortgage interest rates vary over time but Assquire rents are flat).


Assquire® investors typically desire higher net yields monthly, than uncertain and long dated capital returns. That is not available generally anywhere else, than for properties listed on for owner occupiers to buy. So where will investors chasing higher yields list their residential properties in future? The answer is simple: See the BOI FAQ page  for details and Become a Seller if you want to sell your property on conventional terms to this new channel of Assquire® investors seeking properties to buy and then sell and lease using the Assquire® system.

It is difficult to compare as the gross and net yields on rental properties vary so much from area to area. A report at July 2016 noted 3.2% gross for homes nationally and 4.1% gross for units, but rates in South East Queensland have more recently been reported at around gross 4.1% for detached homes and 5.1% on average for apartments; net yields would be much lower. However, Assquire® properties are 40% to 60% superior here in gross rent terms, with little vacancy risk become of the MA buyer’s hefty and increasing deposit.

In terms of accelerated cash flows to Assquire® investors, our financial models demonstrate that compared to renting a property out at say 4.3% pa gross rent and with assumed capital growth of 5% pa for ten years, an investor using Assquire® to sell a $500,000 property to an MA buyer during the settlement period (of years) will be better off by between $210 and up to $257 per week on average in most cases, if they reinvest the surplus cash in their super fund (as many prudent investors do) – that’s an average every week for ten years in today’s dollars and after tax. Precise amounts depend on many variables including whether or not the capital gains tax (CGT) general discount is available, and the price of the particular residential property – these numbers are for illustration only – results clearly vary for properties from say $300,000 to $800,000. This is principally because part of the capital growth return otherwise earned by an investor on sale is effectively brought forward in higher monthly yield to the investor (source: Investor comparison model: 9 September 2017).

But we repeat that’s comparing to gross rentals at 4.3%pa. As per July 2016 market reports more recently, many Australian homes average only 3.2%pa gross rental and units 4.1%pa.

Secondly and equally importantly, investors in conventional rental property investment are hoping for higher capital growth over the longer term, which may not materialise. Again, should there be a downturn in property prices, recessionary or other conditions at any time in the next ten years that ultimately produces only an average 3% pa growth in residential property prices over the next ten years, our financial models demonstrate that the Assquire® investor would likely be up to 30% better off using Assquire investment and selling with deferred settlement to an MA buyer.

If investors expect boom times over the next ten years, they would be punting the result, as future capital growth rates in residential property are unknown over the next 6 to 10 years.

We believe most accountants and financial planners would conservatively recommend their investor clients to lock in the accelerated cash flows for up to ten years and take advantage of the desire of credit qualified renters and would be home buyers to use MA to purchase a home of their own with our lower entry costs.

From the MA purchaser’s perspective, if this product only requires as little as 4.5% cash up front, involves no debt or mortgage insurance during the MA period before settlement and costs roughly similar to a 25 year P&I mortgage (plus the usual property ownership costs) on a like for like basis over the ten years, and they have immediate enjoyment of home ownership lifestyle benefits – including capital growth over the pre-agreed Purchase Price payable at settlement, the only remaining question is whether the products are correct for the parties involved, compared to other choices available to them.

Investors have a buyer in occupation who is incentivised to look after the home as they gain a part of future capital growth in the property.


Our website will be the “go to” site where MA Buyers will see approved properties for owner occupier purchase (and other properties awaiting approval) that they can purchase with lower upfront costs and move into without awaiting their usual finance and settlement delays on their application for a mortgage, their loan documentation etc. They can’t find those properties on any other website, as it is a site dedicated to the Assquire program.

When they find a property they like, there is a buyer application process that they can complete on this website after they have viewed the features and benefits of Mortgage Alternative on this website, and we have taken their applications for credit assessment.

If they cant find a property available right now for them to buy, or are still busy saving for their 4.5% or 5% savings/cash requirement up front (inclusive of any stamp duty), they can look at what Assquire investors might be buying, as they will surely come up for MA Buyers to purchase after the Assquire investor settles a conventional purchase with their at least 30% equity, from a conventional vendor.

A series of two page flyers are available and are being used by our distribution channels as marketing selling tools to guide Landlords/investors and current tenants/ other MA buyers towards our websites, property listings and our on line application portals for both Assquire Investors and MA Buyers.

MA buyers that are looking to ‘Move in Now’ with lower up front costs and no mortgage insurance will understand:

“This home can be purchased on a lower deposit and with no mortgage insurance” but currently, the process is to attract the Assquire investors first, to give the MA buyers something to buy. They can only purchase from an Assquire investor.

As an Assquire investor, higher cash returns will be available here each month and with less property management hassles.

Conventional distribution channels to investor and consumer markets (such as real estate agents, property management companies, project marketing companies, builders, lenders and mortgage brokers) will be selectively used to distribute the product upon their enquiry to the Contact Us page of this website, to ensure product reputation and consistency of marketing, and to offer consumers greater choice in their investment and lifestyle options.

Around 1,900,000 residential homes are currently owned by investors and many of these are managed by licensed real estate agents. This will widen the supply of homes to owner occupiers considerably, under a model where the up front costs of these MA buyers to enter the market are much lower. So expect it to be extremely popular.


Let’s cover listing fees first.

There is a small fee for vendors of established homes to use the system to broaden their home’s appeal to a wider audience of buyers. See FAQ Number 3 of for details.

Commercial channels like building companies are charged more, as this is a lead generator for their business, but the fees are designed to cover hard marketing costs we incur plus a very reasonable fee for service and product development and use. Please contact us if you are a builder or developer to identify the charge, which is very reasonable.

Frequently asked questions on the listings process are on the dedicated Assquire® system listings website.

But listing on to sell to an MA buyer is not a right. You first have to be assessed, as does your property, as suitable to match to an MA Buyer.

The applicable fees for these services and how Haigslea Residential Limited manages this process for an Assquire investor in respect to both their credit assessment of the Assquire investor applicant and their property assessment are disclosed in the Form 6 Agency appointment.

In addition, during the application process, once you have been conditionally credit assessed, we provide you with our Product Specification which includes all our fee disclosures regarding commission – and the HAL differential and HAL’s property management agents’ fees that are deducted from MA Buyer monthly rent payments.

You (and your solicitor (if you wish) who is obliged to explain the contracts to you and advise you before you can proceed to contract with an MA Buyer) receive our Product Specification, after you have been conditionally credit assessed (that step is for free until you are conditionally approved and wish to proceed further, having reviewed our Product Specification and fees).

So this opportunity to check it all out and seek independent financial and legal advice is encouraged well before you proceed to  approved seller status, list the property and then negotiate an Agreed Value with an MA Buyer and sign a contract. We encourage you to do this and speak with your current lender about your plans to sell and lease an investment property using the Assquire system, before you have been successfully credit assessed by HRL and your property has been assessed by HRL’s Property Risk Unit). However, the timing is completely up to you, although the solicitor’s certificate will be required before HRL can consent to the leases and the MA buyer commence paying you the higher rents.

The Product specification will outline HRL Group’s fees which cover use of the Assquire system in respect to that particular property approved and for a particular MA buyer(s), ongoing property management and deposit collection monthly from the MA buyer on your behalf.

Here is a quick broad summary of our standard product specification fees as at September 10, 2017 – All fees below are stated exclusive of GST (if any):

  • Credit assessment and processing – $250
  • Initial Commission on release of Initial Deposit to Seller – 3.3%
  • Settlement Commission – 4.5% payable at settlement (or novation) of the property in up to ten years time – this fee is also payable by the Assquire® investor (seller) at settlement with the MA buyer (usually at the end of the Assquire® period, but reduced to 3.5% plus GST on any Assquire® investor seller default)
  • Direct Debit Dishonour Fee – $25
  • Early Termination Fee – nil
  • Property Management Fee – 3.64%pa of Rent payable in 12 instalments monthly in arrears and deducted only on rent collected, as required by law
  • Leasing Differential – explained in Product specification
  • Listing, valuation and building inspection fees – explained in Form 6 as per link above.

Further details on what is involved is outlined during the application process.

MA Buyers only pay $250 + GST for receiving full credit assessment on

The net returns to Assquire investors are difficult to predict as there are so many variables, just as there are with conventional net rents  – but as a guide, the gross rents are contracted, and gross rents are projected to often be 40-60% higher than conventional average gross rents from the same property today, based on a 4.3% conventional gross rental – plus a priority 1.5% pa capital growth at completion (returns vary from property to property).

Results achieved can be calculated after all fees including Haigslea’s real estate commissions for client establishment and ongoing management of and settlement with the MA buyer over up to 10 years and for the licensed real estate agent’s own property management services to the investor over up to 10 years (often delivered by the conventional real estate agents, and not Haigslea Residential).

Our approved distribution channels and your own independent advisers can also explain the impact of the fees on you and how they are collected but neither Haigslea Residential  nor our real estate or builder channels can provide you with any legal or financial advice, so if you are in any doubt, please consult your independent legal or financial adviser.

Rest assured that for a $500,000 home, the projected additional average $150+ to possibly as high as $257 per week that you earn on average each week over up to ten years (compared to conventional gross rental at 4.3% gross per annum) is in today’s dollars and after tax, as calculated by our Investor comparison model for a $500,000 Queensland home as at September 9, 2017. This is an example only, and result will vary from property to property and over time, so ask your accountant or financial adviser to speak with us if they need more facts about the product and its design, so they can assist to advise you on what is best for your personal investment circumstances. See also the FAQ below.

For fees payable by Mortgage Alternative buyers, buyers simply pay the $250 + GST credit assessment fee and pay a solicitor for their certificate to have the contracts explained. Go to to express your interest and apply, so that our friendly staff can determine your credit eligibility, so that you can see if you qualify, and for what indicative home purchase Agreed Value. There is no fee for an MA buyer to apply at the conditional assessment phase. Pricing and maximum “Indicative Purchasing Ability”  (on an unescalated Agreed Value basis) can then be determined from there for the small credit assessment fee outlined above, but expect the monthly cost of Mortgage Alternative to be roughly the same as a 25 year mortgage + property ownership costs, on a like for like basis.


Step 1 is to apply. The first stage is free and will allow you to know whether you are likely to be accepted or not as suitable to be matched with an MA home buyer. You will need 30% equity as a minimum in your property (at current independent market value), to be conditionally suitable and you will need to furnish HRL with certain information (including statements of assets and liabilities) as part of your application. The 30% alters to 20% for Assquire Family.

Step 2 is to confirm with your mortgage broker that you have the best rates and terms on any finance you have as an Assquire investor, and that your loans either comply with Assquire criteria, or that your affairs can (with the help of your financial adviser or accountant or both) be brought within the Assquire acceptance criteria.

Step 3 is to confirm your tax advice, as Assquire produces higher yields and may affect your lending and tax strategies. We want you to get the best possible after tax returns from your investment, and be aware of the capital gains tax consequences (see below) so that you choose the best property to Assquire, but we cannot provide you with that advice ourselves.


In preparing for step 3, you can provide your tax accountant or tax lawyer with a copy of the below example Capital Gains Tax calculation for a $500,000 sample Agreed Value home.




Assumes 4.5% pa annual property price growth; sale price $580,270

Assumes Investor borrowing at 70% + any CGT payable in year 2.

  • Pre-agreed minimum contract price ($580,270)
  • Deduct cost base (before reduction for future building depreciation deductions, as not yet deducted at time of contract for sale)
  • Deduct share of HRL commission paid by investor in first 24 months from Assquire rent ($6,111)
  • Deduct HRL commission at 3% + GST on pre-agreed minimum purchase price deducted from initial deposit paid by MA Buyer to investor ($13,038)
  • Deduct: HRL settlement commission of 4.5% +GST (most of which is a licence fee paid away by HRL to IP licensor) payable by the investor on sale to MA buyer, but paid by the investor only at the end of the ten years, or on Take Early or seller default ($28,723)
  • Example: $500,000 home = capital gain of$15,473 (50% included in assessable income if CGT general discount applies)
Sale of assquired property 580,270
HRL commission ex agent’s trust account (6,111)
HRL commission (13,038)
HRL settlement commission (28,723)
Buyers transfer fees (Stamp duty) on price incl uplift reimbursed year 10 0
Less Cost Base (516,925)
Profit on sale of assquired property Year 1 capital Loss c/f
Profit/(Loss) 15,473


  • Tax at 39% income tax rate = $3,017 (our financial model assumes investor borrow this sum, but accelerated cash flow of average $195 per week over ten years ($120 pw in year 1) would fund this within the first six months – well before CGT is payable on assessment in most cases)
    1. Deduct building depreciation deductions claimed for income tax during the MA contract period: (no cash flow effect – depreciation has a tax effect only, producing a further capital gain in the form of tax recapture for deductions claimed by the investor during the MA period)
    1. Uplift at assumed 4.5% pa compound growth in property price for ten years: $43,220
    2. HRL Commission payable at settlement of 7.5% +GST on uplift – not factored into original CGT calculation in year 2 ($3,566)
    3. Deduct building depreciation deductions claimed for income tax during the MA contract period: (no cash flow effect – depreciation has a tax effect only, producing a further capital gain in the form of tax recapture for deductions claimed by the investor during the MA period)



Final Sale price                                                                                                    623,491

Less: Initial & Balance Deposit increments paid

to investor during the MA occupancy period                                 58,027

Less: Settlement Commissions noted above to HRL                                   32,289

Note: $28,723 of this was already claimed in year 1 CGT.


CGT payable to ATO on Uplift and building depreciation

recapture, less additional HRL commission on uplift

payment received by investor from MA buyer                              29,622

AMOUNT AVAILABLE TO REPAY BORROWINGS                                   503,553       A


Less: Repayment of 70% borrowing on purchase price

Plus incidental costs of purchase (70% of $516,925)                                 361,848

Less: Repayment of borrowing to pay CGT in year 1                                     3,017

SUBTOTAL                                                                                                                364,865      B


AND BORROWINGS AT 70% REPAID (A-B)                                         $138,688

In the application process, once you have been conditionally credit assessed, we also provide you with our Product Specification which includes all our fee disclosures regarding commission – and the Haigslea Australia Leasing or HAL differential (a unique feature of the Assquire system explained during the application process) and HAL’s property management agents’ fees that are deducted from MA Buyer monthly rent payments (as all property management agents ordinarily do).

Worked examples contain Take Early examples and example Notified Recovery Amounts payable by you (or your Trustee in Bankruptcy if you default). So this would be good to provide to your legal adviser, along with the Product Specification which sets out what the product is and how it works, together with a summary of fees and charges.

A useful chart with suggestions on how to navigate this process with the best independent advice can be found here.


This is an example only current as at 11 September 2017 and should be used as a guide only.

The example assumes a purchase by an Assquire investor of a residential property in Queensland and immediate on-sale to a Mortgage Alternative Buyer, hence the cost base of $516,925 inclusive of investor stamp duty.

Clearly, everyone’s circumstances will be different, with different cost bases, purchase dates, and possibly Assquiring of their principal place of residence (often CGT exempt). Hence the need for independent professional tax advice.

Product pricing is subject to change without notice and may affect calculations above.


Individual investment results may vary because of interest rates, changes in taxation and other laws or regulations, whether an investor fixes their interest rates on their borrowing, whether an MA buyer settles earlier or defaults in their repayment and general economic circumstances.

Assquire investment terms may not be appropriate for an investor’s

Individual personal circumstances and all investors should seek independent professional legal, tax and financial advice.

Note for advisers: We have an investor comparison model – just make contact with us and we may be able to provide you with some worked examples. We will not release the financial model as we are not licensed to provide personal financial advice and it is part of our intellectual property, but we may be able to assist you as a financial adviser with certain factual information in a general (non-specific) context, to get more comfortable in providing your own independent advice to your clients on their own specific personal circumstances. Only general factual information will be provided, however.


Answer: Under an Assquire contract of sale agreement with a series of special conditions that provide among other things a license to occupy.

The licence is a residential tenancy agreement. It is regulated as such by the residential tenancy legislation.

The residential lease is signed at roughly the same time as an Assquire® Contract of Sale and other associated documentation developed to implement the Assquire® system. The lease is required because of the extended settlement.

But make no mistake. As an Assquire investor, you are selling the property, not just renting it, and once committed, you will not be able to sell it to anyone else, without the new investor meeting the Assquire® system requirements and agreeing to the contracts you have signed – including agreeing to the buyer’s interest in settling at any time up to the pre-agreed settlement date.

Whilst ten years is a long time, a buyer of a $500,000 home could accumulate a 11% to 15% deposit by the end of year 6, at growth rates of average 3.5% to 5.5% pa in property prices over that time (Source: Investor comparison model 20170907. Whilst lenders mortgage insurance would still be payable in this instance, it would be less, and the MA buyer could settle with the assistance of their mortgage broker or lender, and move to their new desired location, after settling their purchase and re-selling the property conventionally, should they wish to. Results may vary with time as general economic circumstances and interest rates and property prospects change).

Many buyers may be keen to pay you the ten year price early in that circumstance (to move to another property better suited to their then personal circumstances), allowing you the funds to “go again” on another Assquire property. Of course, a property market downturn would be a different case altogether.


Answer: to the investor, yes they are buying on normal terms.

To the Assquiring occupant (MA buyer) that an investor is selling and leasing his or her investment property to with settlement in up to ten years time, yes sadly there is a second round of transfer (stamp) duty that the law may impose also, although in Qld there is a question over Office of State Revenue treatment of conditional contracts that are subject to due diligence, and whether the liability might not be attracted until financial due diligence conditions are met closer to settlement.

We will be deducting the MA buyer’s stamp duty (if payable to the government) from their deposit and remitting it as and when payable under the law. The Mortgage Alternative purchaser has an effective Take Back guarantee in their contract terms under certain defined circumstances only and subject to certain terms and conditions being met. They cannot simply change their mind and walk away. However, any duty levied by the government may not be recoverable if the MA buyer defaults or the contract with the MA buyer is subsequently terminated – it depends on the circumstances of contract termination.

This is one reason that MA buyers must think seriously before they sign up to purchase a property using the Assquire system and Mortgage Alternative. They need to be serious about buying and living in the home for an extended period, until they are in a position to settle.


Answer: We understand that all rent payments made are assessable income in the year they are derived.

All monthly deposit payments plus the initial deposit are part of the proceeds of disposal of the property and may be subject to capital gains tax in most instances. You will need to seek independent tax advice from a professional adviser, as we are not tax advisers and we do not know if the property has ever been occupied as your principal place of residence for all or part of the time that you owned it.

Assquire investors will receive two separate monthly statements on their investment property: one for the rent payments and one for the monthly deposit payments. The latter will come from the Deposit Holder specified in the contract of sale, and HRL is open to accepting that role, or your solicitor accepting it. HRL do not charge a separate or additional fee for that, as it is part of their service.

This separation in investor reporting should also make it easier for Assquire investor’s accountants at tax time.


Answer: Most usually in the year you sign the contract, which is not necessarily the year that the MA occupant settles the purchase from you. You will need to seek independent tax advice from a professional adviser, as we are not tax advisers.

Under the contract of sale, the investor agrees to receive a pre-agreed minimum price in ten years time that is inflated by an agreed growth rate per annum (currently 1.5%pa compounded annually for both first home buyers and  for non first home buyers).

Non first home buyers also pay on settlement a further “Uplift Payment” if actual property price growth equals or exceeds an average compound annual growth rate of 4.5% pa. In the example of a $500,000 home to a first home buyer who qualifies for the first home buyer’s grant, and where the agreed growth rate is 1.5% pa and the actual growth rate is 4.5%pa, the sale proceeds are $580, 270 and there is no upside risk amount. For others (usually a non-first home buyer), the sale proceeds are around $623,491 including the uplift payment amount amount is $43,220.

You may need to finance any capital gains tax (CGT) payable, or borrow to pay the tax. We have an example Investor comparison table under the stakeholders section of this website (Residential Property Investor section), which looks at the house price, agreed value in the Purchase Contract for sale proceeds and sample taxable incomes assumed of $80,000 pa, $160,000 pa and $240,000 pa (each excluding the property in question’s income). Please consider this with your professional adviser, to assist them in their advice to you on the Personal Assquire® Contract (PAC) product.

The projected average up to 7% pa net yield to an investor (marginally less if you have held the property for less than 12 months when you Assquire it to an MA buyer, because of the 12 month rule for the general CGT discount) is calculated after all fees and is also net of the effect of borrowing up to 5% of the market valuation to assist to fund any CGT.

The added capital growth you receive on settlement at the end of the Mortgage Alternative period therefore has already had all or a part of the CGT paid on it, if the MA buyer settles the Assquire® Purchase Contract. (Note: Institutional Funds acting as Assquire investors into 2018 may have a different higher capital growth sharing model, and may incur income tax at settlement, not CGT).

The above are merely general statements about the product design to assist your financial and tax advisers to assist you to assess the suitability of the product to you, in your own personal circumstances and are current based on the product design at September 11, 2017.

As landlords may have different tax losses or have held properties for different periods or for different purposes before using Assquire®, it is best to see your tax adviser to examine your particular facts and circumstances before using the Assquire® system on any property you own.


Answer: Only if you are making a taxable supply and are required to be GST registered. This may be necessary, for example, if your Assquire® gross receipts from the property/properties you assquire® exceed the GST threshold, or you voluntarily register for GST.

The supply of a residential property is input taxed. An investor buying a property that is a residential property will not pay GST on that purchase (even for new residential premises sold by a developer), so the investor will not receive input tax credits for that acquisition.

On the supply by the investor to the MA Buyer, there will again be no GST, as the supply is input taxed.

You will need to seek independent tax advice from a professional adviser, for how GST affects you in your own specific circumstances, as we are not tax advisers.


Answer: See above question and answer.


Answer: You (the investor) are to remain liable until the end of the extended settlement period as the legal property owner on title, per the residential tenancy laws and special conditions set out in the Assquire® Contract of Sale and Lease. This is why the Assquire® system requires a full building inspector’s report to be prepared at the vendor’s or investor’s cost.

This is prudent when the investor remains on title as legal owner of the property for up to ten years, and the law requires the owner to attend to maintenance beyond fair wear and tear. However, an end of year 5 inspection is also provided for as part of the contract at the investor’s cost to compare the property to its condition at lease commencement (excepting fair wear and tear) and the MA buyer can enforce his or her legal rights or seek adjustment at settlement, in accordance with the terms of the contract.

An Assquire® investor must as always exercise care in purchase, as certain costs (for example, structural repairs like restumping, repairing roof leaks etc) remain your responsibility until settlement with the MA buyer at the end of the MA period. The building inspector’s report commissioned by HRL at the Assquire investor’s or vendor’s expense will aid in allocating responsibility between Assquire® investor and MA buyer (and possibly vendor and Assquire investor if commissioned early enough) for any items that are identified (if any) by the building inspector. Your independent legal advisers will welcome these issues being addressed up front before the contracts are signed, and with the benefit of any defects or issues identified in the mandatory building inspection report.

Note that this is a building report, not a building and pest report.

All buyers are encouraged to seek their own pest reports, which the Assquire system does NOT cover. Caveat emptor applies, as with all purchase contracts.


Answer: No, but it’s worth remembering at this point that the MA buyer has outlayed at least 4.5% of the Agreed Value of the property to buy it from you, is paying inflated rents each month and a monthly further deposit payment to you.

This is far more than a 4 week bond.

However, please also note that whilst the MA buyer pays at least a 4.5% of Agreed Value cash contribution up front, in many cases, this will be absorbed by the payment of the transfer (stamp) duty payable on the transaction with the MA buyer and HRL Group sales commission, so the 4.5% (or more in some States) cash contribution is not anticipated to be available to rectify any damage – nevertheless, the fact that the MA Buyer has outlayed so much to purchase the home (together with your landlords insurance) and the ongoing payment of inflated rents to you should act as a more effective risk mitigant regarding the same issues as a 4 week rental bond does.

Assquire® is purchasing, not renting.

The MA buyer of a $500,000 home, for example, has 25,000 incentives (5% contribution up front on say a $500,000 home)  to settle with the investor on the home at completion and  more incentives each year (as inflated rents and deposit increments are paid monthly) to look after the home during the occupancy period. If they don’t, investors should be aware that refurbishment costs for damage beyond fair wear and tear, not covered by landlords insurance (which will cover some cases) and beyond the annual inflated rents paid to date are to their account.

Even when the MA Buyer’s savings plan commences in year 6, that remains at all times the MA buyer’s own money (except for legitimate legal claims), for return on exit or to contribute towards their settlement with you.

It would be wise for investors to budget for refurbishment costs beyond fair wear and tear annually just as you should with rental properties and once the MA Buyer settles, it’s their home. If they exit by default or exercise of the Take Back rights under the Purchase Contract, the home is forfeited back to the Assquire investor anyway, so it is still your property legally, just as a rental is.

Well kept properties are expected on both sides of the Assquire transaction as an encouragement for Assquire investors and MA Buyers to be accepted in future,as having a good track record in the Assquire system.

All buyers aim to settle the property they contracted to purchase at the beginning of the MA period. That’s why they entered the transaction in the first place.


Answer: The real estate agent gets its commission from the vendor of the property to the Assquire investor at settlement in the usual way. This is a conventional transaction not involving Assquire®, so there is no extended settlement and HRL does not conjunct on that sale,as it will be acting for the Assquire investor purchaser from that vendor.

Agents also make money from ongoing property management.

Property management under the Assquire® system is monitored and actioned by HRL Group (the licensed operators of the Assquire® system) using conventional real estate and property management channels, through the licensed real estate property management industry. Reporting to investors will adopt and augment these conventional channels, as used by the substantial investor rental market nationally. HRL manages the monthly receipt of deposits for up to ten years; the real estate industry the rent collections and maintenance as per usual.

The property manager will be appointed by Haigslea Australia Leasing Pty Ltd (an associate of Haigslea Residential Limited dedicated to outsourcing and monitoring the property management standards of the real estate industry servicing Assquire clients) and paid a fee deducted from rents received from the MA buyer. The Assquire investor is obliged to agree to HRL partly outsourcing this part of its Assquire® property management function (pursuant to the Form 6 Agency appointment that they sign) so that the real estate industry collects the monthly rent as usual and attends to maintenance requests on behalf of HAL and at the Assquire investor’s/owner’s cost, while HRL collects the monthly deposit payments for the Assquire investor.

HRL’s Property Risk Unit assesses the property at the beginning as being suitably valued and building inspected for use with the Assquire® system and HRL prices the pre-agreed minimum sales price and monthly Assquire payments to be payable by the MA Buyer to the Assquire investor, after the seller and MA buyer have negotiated an Agreed Value (in today’s terms) between them).

A product specification details all fees and is supplied once we know the Assquire investor is approved and their current property is approved. Fees up to that point are disclosed in the Agency Appointment form available here.

Broadly speaking,  you as property owner are obliged to pay to use Assquire® including HRL’s fees for commission to attract MA buyers and attend to pricing, collecting monthly deposit payments, HAL’s role in ongoing training and monitoring, and HRL’s client settlement. Your accelerated fees are projected after all these fees and those of the real estate property management industry are paid.

Further details are all outlined in your agreements that you sign after being fully credit and capacity assessed and having your property assessed for using Assquire®. See Assquire Application Process).

An investor comparison model from which the CGT table was derived compares (as a guide only) a property investor’s projected return from Assquiring versus renting after all of these fees have been taken into account.  Your independent financial adviser can advise you or speak with us on your behalf, to make their task of advising you much easier.


Answer: There appears to us to be no justifiable reason for them to refuse, as their security and rights to exercise power of sale should not be impeded with appropriate documentation in place, the MA buyer’s rights are protected by a Buyer’s security that ranks behind the bank and by documented secured interest for return of all or part of the contracted “Notified Recovery Amount” on seller default, and the interest cover for the bank from MA rent payments each month is much higher; the vacancy risk considerably lower.

We have prepared an Assquire Investor Explanatory Guide for lenders and you can give that to (or take that to) your lender and refer them to our Product team. You can also show them our websites and our Product Specification, after you have been conditionally credit assessed by us on Assquire Investor Application.

Assquire contracts offer a much higher average annual yield on the property in return for loss of some control (although you can assign your Assquire rights to another successful Assquire investor applicant) and in return for foregoing any upside through future capital growth above that pre-agreed Purchase Price to the MA occupant/purchaser.

Clearly, a higher yield provides greater interest cover for the bank and the MA Buyer a clear exit mechanism with  lower vacancy risk, but the bank will need to appreciate that you are selling the property on deferred settlement to the MA buyer as purchaser, and that the MA occupant has Take Back rights only in the case of certain defined Take Back events outlined in the Contract of Sale, so if it is a new property that you are buying, it may be prudent and best for them to assess your loan as if you were renting the property conventionally (which is the lower yield position should the MA buyer encounter personal circumstances that permit them to exit the lease and not to settle with you.

Remember to tell your bank that they must provide Financier’s consent to the Buyer’s Security interest as outlined in the Contract of Sale, and that if the MA Buyer defaults or exercises their Take Back Rights, all capital growth to date during the MA period reverts to you!


Answer: The MA buyer (as an occupant/purchaser from you (the investor)) actually makes two separate payments each month: one (the inflated rent) to the real estate agent who showed them the property in the first instance, gave them the keys, manages the property maintenance and collects the rent each month as agent for Haigslea Australia Leasing Pty Ltd (HAL) – a subsidiary of Haigslea Residential Limited; the second monthly payment is the incremental or additional monthly deposit payment that is paid by the MA Buyer direct to HRL’s real estate trust account on your behalf as Deposit Holder under the contract of sale, and is released to you in full without deduction monthly, as part of your monthly statement.

The property manager that Haigslea Residential Limited  train and sub- license in the operation of the Assquire® system (and which is appointed by HAL to manage the property) will look after your Assquire® rent receipts and remit your rental income to you (just as they do now on rental contracts to tenants), but after deducting:

  1. HAL’s Differential for ongoing services to you (noted above) over the extended settlement period; plus
  2. the property manager’s own fee for processing the rent payments from the MA Buyer, as outsourced property management and any legitimate costs for repairs and maintenance or other property costs paid by your instruction or as required by law; plus
  3. the following reconciliation at settlement.

Any client settlement commission payable to HRL at the end of the ten years (or on Take Early or seller default) and other final fees payable from the gross proceeds on completion at the end of the MA period – such as any adjustment required by the terms of the contract of sale– shall be reconciled with the settlement proceeds otherwise payable by the MA buyer to the investor on completion.

Of course, all the above fees are factored into the projected average annual yield to the investor of 5% to 7% pa which is quoted after these fees – and if the MA buyer does not settle at or before the end of ten years, the investor will not be liable for HRL’s settlement commission (other than in the case of the Seller’s own default, where HRL’s settlement commission is reduced).

Special Conditon 15 to the Agency Appointment Form 6, in accordance with the Property Occupations Act in Qld (or equivalent law in other States), outlines when and how HRL’s commission entitlements are payable.


The Assquire investor only pays one amount of transfer (stamp) duty up front, just as with a conventional rental purchase. The MA Buyer pays a second lot of transfer (stamp) duty as part of their initial 4.5% or 5% cash contribution, but that duty is only on the pre-agreed purchase price, and is not part of their deposit, so the Assquire investor deos not pay that.

The only circumstance where the Assquire investor pays any more duty is only for non-first home buyers and then only in the circumstance where actual capital growth equals or exceeds a compound annual growth rate of average 4.5% pa.


The investor pays this duty on eventual setlement only, and only because they have been paid an Uplift Payment by the purchasing MA Buyer, as per the terms of the Contract of Sale.

So this is only determined if and when the MA buyer settles – usually at the end of the ten year MA period and only if a non-first home buyer and in those circumstances outlined above only.

If the MA buyer does not settle, the second amount of transfer duty (potentially payable on settlement when any Uplift Payment is determined to be payable) is not payable by the Assquire investor. Here’s how it works.

The MA buyer’s 5% deposit is at risk, as is the 10-12% deposit when a Buyer takes a conventional mortgage. Taking a $500,000 home in Queensland as an example, indexed by 1.5% pa to a pre-agreed minimum purchase price in ten years of $580, 270. In this case, $11,962 of the 5% cash contributed up front by an MA Buyer of $25,000 is required to be allocated immediately by the MA non-first home buyer or their solicitor as transfer (stamp) duty – as with your home equity with a conventional mortgage. The balance $13, 038 becomes the MA buyer deposit released in accordance with the terms of the Contract of Sale to pay part of HRL’s commission entitlement under the Agency appointment. The balance of the commission (3% + GST of the known Purchase Price at that time of $580,270) is paid by the Assquire investor from their accelerated rental yields paid monthly to the investor by the MA buyer – this is currently projected to take up to approximately 18 months.

The overall result is currently modelling as at June 17, 2016 at a total projected average annual total return of 10% to the Assquire investor – being a passing yield of 7.94% pa after all fees  plus the 2.06% pa capital growth.

The equivalent figures for a first home buyer are 8.11% pa average passing yield and 0.68%pa average capital growth (total return 8.8%). Projections are based on assumptions and not assured. Every property will be different and returns are affected by general economic circumstances, property characteristics and age, changes in interest rates and changes in regulatory laws.


It is worth pointing out that the purchaser’s contract to buy a home is executed initially in 2016 with a Personal Assquire Contract (PAC) investor who must meet Haigslea Residential Limited’s stringent credit assessment criteria. Into 2017, contracts may also be offered with a pooled Residential Fund that is intended to be capitalised by major Australian financial or property institutions. It is therefore highly unlikely that the Fund will go broke.

With individual Assquire investors, a minimum 30% equity (based on Agreed value of the property offered for sale to MA buyers) is required of the investor, with no cross collateralisation allowed.

To the extent that an Assquire investor goes bankrupt, the MA buyer has a secured interest in the property through their Buyer’s mortgage registered on the title by their solicitor, as well as their registered ten year lease – any bank lender to the Assquire (PAC) investor is alerted to your contractual interest in the property from the start by the legal requirement for financier consent prior to MA buyer occupation of the property under their lease.

Moreover, the Mortgage Alternative product has a number of Assquire system design features specifically engineered to reduce default and enforced sale risk. Also remember that buyers have no obligation other than the monthly payments that arise from the contract executed with the PAC/Assquire investor or any Fund. It therefore stands to reason that if buyers have more certainty and less risk, buyers are less likely to default, and the Assquire investor or Fund therefore is less likely to have a financial problem.

However in the extremely unlikely event that the Fund or the Assquire investor does go broke, any creditor bank or non-bank lender to the Assquire investor  would likely sell the Assquire investor’s property and the bank would be repaid first, then the MA buyer’s security interest would be payable, in advance of any unsecured creditors of the Assquire investor, to the extent that sales proceeds allow.

As we saw in the recent global financial crisis (GFC), a number of Funds became “distressed” due to high debt levels. In this event, it is the Fund’s responsibility to find additional capital that will enable it to deliver its contractual commitments to customers. In the worst case scenario, a receiver or liquidator would be appointed and it is then their responsibility under the law to sell the contract to another financial institution.

Haigslea Residential Limited credit assesses Assquire investors and approves them only after stringent credit checks and full credit assessments are performed.

Haigslea Residential Limited is a service provider to the Assquire (PAC) investor or any Fund and receives revenue from the PAC investor or Fund for the services it provides in administering these contracts as agreed between the parties. If the buyer pays the Assquire investor or Fund the monthly payments as required by the contract, HRL Group will be paid its fees as per the contract as will Haigslea Australia Leasing Pty Ltd’s property management agent (an outsourcing to existing real estate agents of some of those property management duties in relevant cases) from the payments made by the MA buyer.

If the buyer can’t pay and cancels their contract and vacates the property, the Assquire investor either obtains another suitable qualifying customer for that particular home or it sells the home – in both cases with the assistance of HRL and its accredited and trained real estate agency channels.