What is the Co-Ownership Property Scheme
In this Property Now episode, we break down the new government co-ownership scheme designed to help first home buyers enter the property market.
The concept is simple. The government buys a share of the property with you. This reduces both your deposit and your borrowing needs.
How the Scheme Works
Lower Deposit and Loan Requirements
Key features include:
- Buy property with as little as 2% deposit
- Government owns up to 30% of established property
- Up to 40% for off the plan or new property
- Smaller loan required from the bank
This makes buying your first home more achievable.
Why This Helps First Home Buyers
The scheme solves two major barriers:
- Not enough deposit
- Not enough borrowing capacity
For many buyers, this is the difference between entering the market or missing out.
Eligibility and Limits
There are conditions to consider:
- Income cap of $100K for singles
- $160K for couples
- Property price caps based on location
- Limited to 10,000 places per year
This ensures the scheme targets genuine first home buyers.
What Happens Over Time
The government does not stay forever:
- Your income is reviewed each year
- You can buy back shares over time
- Minimum buyback is 5% at a time
- Property value changes affect the buyback price
This creates a clear pathway to full ownership.
Off the Plan Property Advantages
Buying off the plan under this scheme can be powerful:
- Government may cover up to 40%
- Lower upfront cost
- Access to newer developments
This opens more opportunities in competitive markets.
Coposit and Flexible Property Buying
Coposit helps buyers secure property with a smaller upfront amount and pay in instalments during construction. Combined with government support, this can significantly reduce the barrier to buying your first home.
Is This the Right Way to Enter the Property Market
If you are struggling with deposit or borrowing capacity, this scheme could be a strong pathway into property. Understanding your options is key to making the right move.
