Mildura College Lease Scheme Funds Schools with $1.95 Million Annually
A unique 140-year-old housing model in Mildura directs rental income directly to local schools, creating a distinct price gap in the regional market.
The Mildura Schools Land Trust disburses $1.95 million annually to local educational institutions. This funding supports 27 primary and secondary schools in the Sunraysia region. More than 9,000 students benefit from the additional resources. The money purchases classroom equipment and technology that schools would otherwise lack.
Mildura is the only Australian town with an active college lease scheme. There are 184 land lots in the city that are leased rather than sold as freehold. The Victorian education minister holds the legal ownership of this land. Residents own the improvements on the property but not the ground itself.
Historical roots of the lease model
The scheme originated in 1886 with a government deal involving the Chaffey brothers. These Canadian engineers established the Mildura irrigation settlement. They set aside one-fifteenth of the available land for educational funding. This decision was inspired by a similar system they observed in California.
The Chaffey brothers intended the funds to build an agricultural college. That specific institution was never constructed. A local high school became the first recipient of the lease revenue. The system has remained in place for over 140 years.
Price gaps in the housing market
College lease properties often sell for significantly less than freehold homes. A house on Lemon Avenue recently sold for $300,000. A similar freehold property across the street sold for nearly $550,000 two months earlier. This creates a price difference of roughly 45 percent for comparable dwellings.
Damian Portaro, managing director of Ray White Mildura, notes the system is unique. He explains that buyers from major cities often require education on the lease structure. First home buyers frequently face difficulties securing finance due to the unusual clauses. Most current buyers of these properties are investors rather than owner-occupiers.
Potential for social housing expansion
The Mallee Accommodation and Support Program uses the scheme for social housing. The organization built housing on five college-lease properties with assistance from Homes Victoria. Charmaine Calis, chief executive of MASP, describes this as a dual benefit. It supports local schools while also providing affordable housing.
MASP told a parliamentary inquiry that the government should expand this approach. Calis stated that increasing housing supply is a priority. She identified college leases as a viable method to address the housing crisis. The scheme offers a practical solution for both education and residency.
