FAQ
Frequently asked questions
Who is Sunrise Foundation?
Sunrise Foundation is a charitable organisation focused on providing community housing via medium and longer term tenancies as well as affordable home ownership programs to families and individuals who are otherwise unable to afford housing without assistance, including the elderly, survivors of domestic abuse, older women, disabled persons, young adults, persons on low income, or moderate income and struggling with the cost of living, and other at risk categories such as single parents with dependent children.
What is EquitiShare?
EquitiShare is dedicated to helping Australians who are unable to afford to acquire a home.
We help:
- First home buyers
- Essential workers (eg, early childhood educator, teacher, nurse, midwife, paramedic, police officer, etc)
- Single parents with a dependent child or children
- Survivors of domestic abuse
- People experiencing housing instability due to separation, divorce, or other adverse circumstances
- People experiencing housing insecurity due to the current state of the housing market (eg. low rental supply, rental stress, high cost of living, etc)
Under the EquitiShare program, Sunrise will sell property from its portfolio, while retaining an interest in the property to make the purchase more affordable for people who qualify.
Who is EquitiShare for?
EquitiShare is specifically designed to give a leg up to Australians in need of a helping hand.
If you fit the following criteria, then we encourage you to apply.
- Australian citizens or permanent residents age 18 +
- You do not already own property (or won’t by the time you buy a property from Sunrise)
- You plan to live in the home that you purchase from Sunrise
- You do not have sufficient savings to buy a home without our assistance
You must also be at least one of the following:
- A first home buyer
- An essential worker (eg, early childhood educator, teacher, nurse, midwife, paramedic, police officer, etc)
- A single parent with a dependent child or children
- A survivor of domestic abuse
- Experiencing housing instability due to separation, divorce, or other adverse circumstances
- Experiencing housing insecurity due to the current state of the housing market (eg. low rental supply, rental stress, high cost of living, etc)
To obtain a loan to fund your purchase price, you will also need to satisfy the lender’s criteria which will include a credit-worthiness check.
How does EquitiShare work?
Step one, is to find out whether you are eligible for our EquitiShare program.
If you are eligible, the next step is to choose a property from the Sunrise portfolio. The homes have a capped market value, currently $1 million. Each property is allocated a fixed equity share that Sunrise keeps (up to 20% interest), allowing you to secure finance on the remaining interest (at least 80%) to fund your purchase.
Example (illustrative only):
Property market value: $800,000
Sunrise equity share: 20%
Equity share available to purchase: 80%
Amount you need to pay: $640,000 (plus transaction costs)
We will put you in touch with someone who can help you secure a loan from the program lender, for the amount you need to buy the property. You will need to meet their lending criteria.
Ready to go! Once you have the funds available, we will transfer to you sole legal title. In return you agree to us lodging a second ranking charge on the property title to protect our equity share, pursuant to an EquitiShare Agreement that we will both sign.
It is that easy!
What are the benefits of Equitishare?
Home ownership is out of reach for so many Australians. EquitiShare has been designed to help more Australians achieve their dream of owning a home on an affordable basis.
Under EquitiShare, you own the home, we share in the equity.
This means if the value of the property goes down, we share in the depreciated value according to our equity shares.
However, under EquitiShare, if the property appreciates in value by more than 10%, you take the benefit of the upside over that, not us. We don’t know anyone else in the market who does that!
Our program is specifically aimed at lowering the costs for those who need a helping hand. You can apply even though you don’t have a deposit saved up.
Better still, unlike many other programs, we don’t lend you money for a deposit, so you don’t go into debt with us. We just hold onto some of the equity, to help make the home more affordable for you. When you can, you may buy us out. Alternatively, we simply take a payment from any sale proceeds when you sell, calculated according to our share of the equity.
Our program is aimed at helping you. We offer a support program under the EquitiShare Agreement that you will be asked to sign. If you find yourself in difficulty, you can contact us to see if we can help. For example, you might find yourself between jobs and struggling to pay rates for a month or two. We may agree to cover such payments for you on an exceptional basis. If we do, we simply add the amount that we paid to the amount that we are entitled to receive when you sell.
Who is the legal owner of my home?
You are. The title of the property is in your name. Our equity share is secured by second ranking charge registered on the title.
What if the value of my property goes down?
Under EquitiShare, if the value of the property goes down, we share in the depreciated value according to our equity shares.
However, if the property appreciates in value by more than 10%, you take the benefit of the upside over that, not us.
Do I qualify for the Equitishare Program?
For further information see ‘Who is EquitiShare for?’
Our EquitiShare Program is aimed at giving a leg-up to hardworking Australians struggling with home ownership and otherwise unable to afford to acquire a home. If you are a first home buyer, an essential worker, a single parent with dependent children, a survivor of domestic abuse, or otherwise struggling to buy a home, you may qualify for our program.
What if I want to sell the property?
You can sell the property at any time. You will just need to get our consent and follow the steps set out in the EquitiShare Agreement that we will ask you to sign.
The amount that you receive when you sell the property will be your share of the net proceeds after payment of all costs and amounts due to your lender, less any amounts that we may have paid on your behalf as part of the EquitiShare support program.
Sunrise agrees to cap its share of any appreciated value to the first 10% (plus any support payments made). Any net profit over that is entirely yours!
What is the EquitiShare Support Program?
Our program is aimed at helping you. We understand that unforeseeable things can happen.
Under our EquitiShare Agreement that you will be asked to sign, we include a support program. If you find yourself in difficulty, you can contact us to see if we can help. For example, you might find yourself between jobs and struggling to pay rates for a month or two. We may agree to cover such payments for you on an exceptional basis. If we do, we simply add the amount that we paid to the amount that we are entitled to receive when you sell.
How does Sunrise protect its equity share?
Sunrise will ask you to enter into an EquitiShare Agreement setting out our rights and obligations to each other in respect of our equity shares. Sunrise will register a second ranking charge against the title of the property to secure its rights under the EquitiShare Agreement.
I’m an investor. Can I apply for EquitiShare?
We do not offer EquitiShare to investors wanting to make a difference just yet, but we will soon launch a program especially for you. Please contact us to waitlist.
How do you protect my personal information?
Your privacy is one of our top priorities. A copy of our privacy policy can be located here.
How long does it take to find out whether I am eligible?
Once we receive your completed eligibility form, if you meet our initial requirements, we will endeavour to contact you within 2 business days to help you navigate the next steps. If you do not hear from us in this time frame, please call us.
What if the property I want is currently rented out?
That’s okay! Our EquitiShare program is designed to help people who are not able to buy a home on their own. You can still buy a property that has a tenant, as long as you plan to move in yourself once their lease is up.
What if I never sell my property?
You don’t have to sell! We’ll never ask you to sell or buy us out, unless you breach our EquitiShare Agreement. As long as you own the property, the agreement stays in place and outlines our shared responsibilities.
Can I leave the EquitiShare Agreement whenever I want?
You can buy us out completely at any time, or you can sell the property with our consent. In either case, you’ll need an independent valuation to figure out how much our share is worth. Remember, we’ll never force you to sell or buy us out unless you break the rules of the agreement. Once you’ve sold or bought us out, the agreement ends.
What happens if I can’t pay my home loan to my lender?
If you fall behind on your home loan payments, that’s a breach of our agreement. It’s really important to let us know right away if you’re worried about making payments or if you miss one. We’ll always try to work things out with you first. If we have to pay any money on your behalf to resolve the problem, that amount gets added to our share when the property is sold or you buy us out. If we can’t resolve the issue, we might have to take further steps, including selling the property. Keep in mind that your lender also has rights if you can’t pay your loan, and those are separate from our agreement.
What if the property sells for less than I bought it for?
If the property sells for a loss, the value of both our shares goes down proportionally. For example, if you bought the property for $650,000 and we own 10%, and then you sell it for $600,000, we’d get 10% of the sale proceeds and you’d get 90% (to cover sale costs and your home loan first). However, if your share isn’t enough to pay off your bank loan, we’ll get less to make sure the bank is paid in full. You’ll need our permission to sell at a loss, and we’ll consider all the details before deciding.
How does Sunrise protect its share?
We protect our share with the EquitiShare Agreement and by registering a caveat and second charge on the property title. This makes sure our interest is legally recognised and protected if the property is sold, refinanced, or involved in any legal issues.
Can I buy Sunrise’s share?
Yes, you can buy our share anytime! You can buy us out completely or in parts (at least 5% at a time). You’ll need an independent valuation to figure out the cost.
What if I want to sell before buying out Sunrise?
You can sell anytime with our consent. You’ll need a valuation to figure out our share’s worth. Based on that, we might offer to buy the property from you. If not, you can sell it through a real estate agent. After paying selling costs and your lender, we get paid our share, and you get the rest. If the property’s value goes up by more than 10%, we’ll cap our share, and you’ll keep any extra profit above that.
What if I need to sell because of financial hardship?
If you’re struggling financially and can’t keep the property, we’ll first see if we can help through our EquitiShare Support Program. If that’s not possible and you need to sell, you can sell it, or we can step in and sell it for you. We have the first right to buy it from you. If we don’t, it’ll be listed with a real estate agent. The money from the sale goes first to selling costs, then to pay off your lender, then to us (including any support payments we made), and finally, the rest goes to you.
How are profits and losses split when the property is sold?
If you sell for more than you bought it for, we split the profit according to our shares. But we cap our share at 110% of the original value – any profit above that is all yours! If you sell for less than you bought it for, the value of both our shares goes down proportionally. See the FAQ “What happens if the property is sold at a loss?” for more details. No matter what, the sale proceeds always pay for selling costs first, then your lender, then us, and finally you. If the costs and what you owe your lender are more than the value of your share, you won’t get any money from the sale, even if the property’s value went up.
Is further information available about how EquitiShare works?
Yes! Please contact us and we can provide you with further information.
Let Us Bridge the Gap to Homeownership.
Take the first step with EquitiShare and start your home ownership journey today.
