The Victorian government’s shared equity scheme has proven very popular, with the program down to its last 200 places, according to new figures from the State Revenue Office.

The figures show the $500 million Homebuyer Fund had invested more than $260 million by the end of June this year, helping 1,600 buyers get on the property ladder. Another 1,200 buyers have been approved and are actively house hunting, leaving about 200 places open.

Unsurprisingly, Melbourne dominates the most popular locations of the scheme so far, accounting for 90% of buyers. Other popular locations include Geelong, Ballarat, Bendigo, Gippsland and the Bass Coast.

What’s the Homebuyer Fund?

Launched in October 2021, the $500 million Homebuyer Fund lets eligible Victorian home buyers co-purchase property with the state government. As a result, they can break into the market with a deposit of just 5% (with the government contributing up to 25% of the value of the home on top).

The government keeps that stake in the home until the property is sold or the owner buys out its share

Who is eligible?

Eligibility requirements include:

  • Earning a gross annual income of less than $125,000 for singles or $200,000 for couples
  • Being an owner-occupier, not an investor
  • Not currently owning property (although past ownership is acceptable)

Property price caps also apply, with homes needing to cost:

  • $950,000 or less in Melbourne and Geelong
  • $600,000 or less in the rest of the state

The property needs to be your principal place of residence.

Freya Southwell is a property lawyer and principal of Sutton Laurence King Lawyers.

Need expert advice on property law in Victoria? Contact Sutton Laurence King Lawyers today on 03 9070 9810 or for help.