Mildura’s unique housing scheme funds local schools
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In Mildura, Victoria, a century-old agreement means 184 properties are leased instead of sold, with the revenue benefiting local schools.
Canadian engineers George and William Chaffey established the scheme in 1886 as part of the Mildura irrigation settlement, intending to fund an agricultural college. When the college wasn't built, the funds instead went to support education in the Sunraysia region.
The Victorian education minister currently owns the land, and lease payments generate about $1.95 million each year for 27 primary and secondary schools, helping them purchase equipment and technology. Homes on these leased blocks often sell for less than comparable freehold properties, one recent sale was for $300,000, while a similar property nearby sold for $550,000. While the scheme attracts first home buyers, securing financing can be difficult due to the unusual lease terms.
The Mallee Accommodation and Support Program is currently using the scheme to build social housing, and has suggested the Victorian government consider expanding similar lease arrangements to address the wider housing crisis.
