Help to Buy 2.0: Is Co-Buying with the Government a Smart Move?

Worldwide Advisory
Apr 29
3 min read

With property prices continuing to challenge first-time buyers across Australia, the Federal Government’s “Help to Buy 2.0” scheme is being pitched as a game-changer. Designed to make home ownership more accessible, this shared equity program allows eligible Australians to co-purchase a property with the government—but is it really the smart financial move it claims to be?

Whether you’re an investor, business owner, or simply exploring long-term wealth strategies, understanding the pros and cons of co-buying with the government is critical.

🏡 What Is Help to Buy 2.0?

Help to Buy 2.0 is an expanded version of the government’s original shared equity scheme. It allows eligible buyers to purchase a home with the government contributing up to 30% for existing homes and 40% for new builds.

In exchange, the government holds an equity stake in the property—meaning they share in both the gains and losses when the home is eventually sold.

The program targets:

Low to middle-income earners
First-home buyers who are struggling with deposits
People who may not qualify for traditional loans due to rising interest rates and housing costs

✅ Pros: The Perks of Government Co-Ownership

1. Lower Entry Barriers

You’ll need a smaller deposit and borrow less from the bank—making home ownership achievable for more Australians.

2. Reduced Mortgage Stress

Smaller loans mean lower monthly repayments, freeing up cash flow that can be used for other financial goals or business investment.

3. Avoiding Lenders Mortgage Insurance (LMI)

With a reduced loan size and greater equity upfront, many buyers can avoid costly LMI premiums—a major win for first-timers.

4. Potential Capital Growth

Despite giving up a share of your property’s future profits, you're still gaining exposure to property market growth—especially if you buy smart.

❌ Cons: The Trade-Offs You Shouldn’t Ignore

1. You Don’t Fully Own the Property

The government retains an equity share, which means you’re giving up full control over your asset. If the property appreciates, so does their cut.

2. Limited Flexibility

Selling, refinancing, or making significant alterations to your property may require government approval, slowing down your decision-making.

3. Clawbacks on Profit

When it comes time to sell, the government will take a proportional share of your capital gains. For savvy investors or business owners, this could mean missing out on valuable equity growth.

4. Eligibility Restrictions

The scheme is not open to everyone. Income and property value caps apply, which may limit its usefulness to higher-income earners or entrepreneurs.

👀 So, Is It a Smart Move?

It depends on your goals.

For first-time buyers or those struggling with affordability, Help to Buy 2.0 could be a useful stepping stone into the property market. However, for business owners, investors, or high-income individuals, co-buying with the government could introduce unnecessary complications and reduce long-term financial upside.

Before making any decisions, it’s vital to run the numbers and understand your personal or business tax implications, equity exposure, and exit strategies.

📞 Need Clarity on Your Property or Financial Strategy?

Navigating government schemes and property investments can be tricky, especially when you're trying to align them with your overall financial goals.

That’s where Worldwide Advisory comes in. Our team can help you: