How to Buy Property in France as a Non-Resident

Wondering how to buy property in France as a non-resident? Australian citizens (or any other non-residents) don’t actually face any special restrictions – you can purchase French real estate with essentially the same rights as French citizens. 

So foreign buyers can have full property ownership rights and can invest in French real estate just as locals do. That said, being a non EU citizen does mean you have a few extra steps you need to think about, like visa rules for long stays and potential differences in the mortgage process. 

But when it comes to the buying itself, France welcomes international purchasers, and the process is broadly similar for locals and foreigners. Let’s look at this in a bit more detail:

The Process of Purchasing Property in France

There’s a clear property purchase process in France for non-residents, but it will probably feel a bit different from what you’re used to in Australia. Here’s a walk-through of the main stages, from hunting for a home to completing the sale:

Finding The Right Property And Making An Offer

Most people start their search online and look through French property portals and estate agency websites. Once you have a shortlist, you’ll want to get in touch with a local real estate agent (an agent immobilier) early on. 

France’s realtors not only help you locate suitable homes, but also guide you through the buying steps, which is invaluable if you don’t speak French fluently. In fact, because the process will be conducted in French and involves local paperwork, a bilingual agent who’s used to foreign buyers is almost a necessity since it makes your life so much easier. 

Your agent will arrange viewings and, when you’ve found “the one,” help you negotiate the terms and property price with the seller. The negotiation process in France is similar to elsewhere: you and the seller haggle (often via the agents) until you agree on a purchase price that works for both parties. 

And don’t be afraid to offer below the asking price – in a cooling market, sellers may be more flexible. Once a price is agreed, things start moving quickly into the contract stage.

Signing The Initial Contract (Compromis De Vent)

The first major document is the initial contract known as the Compromis de Vente. This is essentially the preliminary sales agreement between buyer and seller. It lays out things like:

• The agreed price
• Property details
• Any conditions (for example, if the sale is contingent on you getting a mortgage)

You’ll usually sign this initial contract with a French notary (notaire) there or sometimes just at the estate agency. French law builds in a 10-day cooling-off period after signing. This is your last chance to withdraw from the contract without any kind of penalty.

So after those 10 days, the contract now becomes binding and you’ll need to pay the deposit, which is usually around 10% of the purchase price. This deposit will be held in escrow (often by the notary or agency) until it’s been completed. 

The Compromis de Vente is one of the main milestones of the whole agreement as it means both parties are committed to the deal (with some escape clauses for things like mortgage denial) and kicks off the due diligence process.

Due Diligence And Paperwork

So there are usually a few months of waiting before final completion after the Compromis. And during this period, various checks and paperwork are completed. As the buyer, you’ll want to ensure the property is in good order and that there are no legal surprises. 

French sellers are required to provide a Dossier de Diagnostic Technique (DDT) – a pack of official property surveys and certificates covering everything from lead paint and asbestos to termites and energy efficiency. This dossier de diagnostic technique is there to inform you about the property’s condition and any issue; it’s often reviewed with the help of your lawyer or agent. 

Your notary will also conduct title searches to verify the seller has clear ownership and to uncover any mortgages or easements on the property. And if any conditions were stipulated (such as obtaining planning permission or a mortgage approval), those also need to be sorted during this phase. 

It’s generally also a good idea to hire your own surveyor if you want a more detailed inspection, especially for older homes – remember, French houses can be centuries old, so an expert look at the structure and roof can do you a favour later. 

This is the time to ask questions and get documents translated if you don’t understand them – French bureaucracy can be paperwork-heavy.

Final Contract And Completion

The last step is signing the Acte de Vente (also called the acte authentique), which is basically just the final deed of sale. This is the moment you actually become the owner of the property. 

Completion usually takes place at the notary’s office. The notary (who is a public official responsible for ensuring the transaction is legally sound) will read through the contract aloud – traditionally in French, but your agent or translator can help if needed – and then both you and the seller sign it.

At this stage, you will pay the remaining balance of the purchase price to the seller, as well as settling all the purchase costs and notary fees. It’s also fairly common for foreign buyers to grant the notary a power of attorney to sign on their behalf if they can’t be present in person, so don’t worry if you’re still in Australia on the day. Then once everything is signed and funds are transferred, you get the keys – congratulations!

Taxes, Fees And Registration

In France, the buyer generally needs to pay the majority of the closing costs. These include the notaire’s fees and associated taxes (roughly 7-8% of the purchase price for an older property), plus any legal fees for your own lawyer (if separate) and maybe even a small estate agency fee if it wasn’t already covered in the price. 

The notary fees you pay actually mostly go toward government duties and taxes so only a small portion of that is the notary’s true fee. Additionally, you’ll pay a one-time land registration tax (it’s usually bundled within that 7-8%) to register the change of ownership. 

The notary handles the land registry formalities on your behalf – after the sale, they will file the deed with the French Land Registry (the cadastre) to record you as the new owner. A few months later, you’ll receive an official title document proving your property ownership has been registered! 

All of these costs are typically rolled into the final closing statement, so be prepared for your final payment to include more than just the agreed house price. We’d generally recommend that you budget for around 10% on top of the purchase price to cover taxes and fees to be on the safe side.

How Upscore Can Help

Upscore’s Finance Passport can help you show your financial history to overseas lenders, which makes it way easier to explore mortgage options as a non-resident. It’s a free service and lets you compare multiple lenders so you know you’re getting the best deal. 

Sign up for Upscore’s Finance Passport today!

Moving Abroad: Expectations vs. Reality

There are plenty of people who move to Australia from overseas, but have you ever thought about leaving Australia to live somewhere else in the world? You definitely wouldn’t be alone – over half a million Australians now live abroad. 

But how exactly does that dream of moving abroad compare with reality? Let’s unpack some of the more common assumptions Aussies have about expat life and see what really happens once the plane lands and you’re left to your own devices.

Cost of Living: Expecting Cheap, Meeting Reality

Expectation: Life will be cheaper overseas – no more “Australia tax” on everything.

Reality: It’s a bit mixed and definitely isn’t always the case. Australia is indeed expensive, no one is denying that. But we also have high wages to match. 

Move to a place with lower salaries and, even if groceries or rent are cheaper, you might feel a pinch in a few other ways. For instance, Australia’s overall cost of living is about 10% lower than London’s, so an Aussie arriving in the UK may be shocked when a pub meal or flat rental costs more than it did back home. 

Needless to say, things definitely get a bit more affordable when you go further up north, but even cities like Manchester have incredibly high costs of living. Obviously, this is assuming that you’re planning to emigrate to an English speaking country, which is why we’re focusing on England at the moment.

On the other hand, some things definitely are a bit cheaper abroad – Brits usually get lower supermarket prices than Australians (thanks to the shorter distance for imports around Europe, for example), and many Asian countries have bargains when it comes to street food and transport. 

But in short, “cheap” and “expensive” will flip around depending on where you go. As a result, you’re just going to have to learn how to adjust your budgets.

Cultural Adjustment: More Than a Holiday

Expectation: Moving abroad will feel like a permanent vacation. Same language and similar culture means an easy transition.

Reality: Once the honeymoon phase passes, daily life overseas has the same chores and challenges as life at home – just in a different setting. Obviously, it’s still a fairly exciting prospect to move abroad, but you’re not going to be able to run from your problems entirely. You’ll still have to commute to work and pay your bills, only now you’re figuring it all out in unfamiliar surroundings. 

Even in another English-speaking country, you’ll stumble over little differences. Australians are famously informal, which could definitely raise a few eyebrows in more emotionally reserved cultures like in England. 

Adapting basically just means letting go of the “holiday” mindset and trying to embrace a new normal. It’s not our goal to sound too pessimistic and cynical about this whole journey. The good news is you’ll also discover new delights – perhaps a local bakery you love or a new sport you take up – that become part of your routine. You just need to appreciate that it’s not a holiday; it’s just everyday life, but with different buildings and weather.

Housing & Space: A Reality Check

Expectation: Housing will be easier or cheaper overseas. Maybe you’ll get a bigger place for less than you paid in Sydney.

Reality: Think again. Australian homes are actually among some of the world’s largest – on average about three times the size of UK homes – so moving into a London flat or Tokyo studio can be a fairly big shock to your system. 

You might swap a backyard and garage for a tiny balcony (or no outdoor space at all, which is fairly common in England). Even if property prices abroad seem lower on paper, exploring the market as an outsider isn’t exactly simple – especially if you’re going to a non-English speaking country. 

Renting can come with unfamiliar rules (like needing a local guarantor or extra deposits), and buying property is notoriously a frustratingly bureaucratic process. Be prepared for plenty of paperwork – translating documents and proving your financial credentials in a new system – to get a mortgage approved overseas. 

It’s all doable, but it certainly isn’t the effortless process you might expect. You’re definitely going to have to be a bit patient while you’re hunting for that new home away from home.

Community & Friends: Starting from Scratch

Expectation: You’ll instantly make friends and feel at home, and locals will love your Aussie charm.

Reality: Building a social circle from scratch is harder than it looks. In the first weeks abroad you might feel like the odd one out – your lifelong mates and family are thousands of kilometres away, and you might be friendly with co-workers or neighbours but probably aren’t going to feel immediately close. 

The Australian accent, for better or for worse, is definitely somewhat of an ice-breaker, but turning small talk into real friendship is something that takes time. We all take for granted how easy it was to make friends when we were back in school; it isn’t always as easy when you’re an adult.

Many expats find themselves seeking out other Australians or at least English speakers for a bit of familiarity. There’s no shame in that – joining an expat meetup or social group can quickly connect you with people who understand what you’re going through. 

Over time, you will break into the local scene too, especially as you learn the culture (and perhaps the language if you’re moving somewhere nearby in Asia, for example). Again, the key is just putting yourself out there and being patient. 

Bureaucracy & Healthcare

Expectation: Paperwork will be straightforward, and my health needs will be covered just like in Australia.

Reality: Every country has its own heap of rules and admin, and you often don’t realise how smooth things are at home until you’re dealing with a foreign bureaucracy. Setting up bank accounts or driver’s licences can turn out to be a whole ordeal. 

Some places are infamous for red tape – and often for good reason. Even in efficient countries, you’ll likely come across forms and processes you’ve never heard of. And when it comes to healthcare, don’t assume you’re automatically covered. Australia’s Medicare safety net doesn’t travel with you. 

While countries like the UK have public health systems with the NHS, the reciprocal healthcare agreement we have only covers basic emergency treatment and leaves out a lot. In many destinations (especially those without universal healthcare, like the United States), private health insurance is a must to avoid huge bills. 

So, make sure you do your homework on local requirements and get proper coverage. You wouldn’t want to be massively out of pocket from some random illness or from a bit of paperwork.

How Upscore Can Help

If you’re an Australian planning an international move, one way to ease the transition is to get your finances sorted early. Upscore’s Finance Passport can help by using your Australian financial history to let you compare and even apply for mortgages in multiple countries online. It simplifies remote property financing across borders, so you can explore your options with far less hassle. 

Sign up for Upscore’s Finance Passport today!

Property Investing 101: Your Guide to Buying New Land

Buying an empty block of land was probably not the first idea that came to your mind when you decided you wanted a property investment. For many Australians, property investments usually involve a house with tenants or a shiny apartment in the city. But there’s another side of the properties investment that you should think about: land. 

If you’ve ever looked at a patch of earth and imagined what could be built there, you already understand the appeal of property as investment in its rawest form. Obviously, it’s basically just dirt right now – no house, no rent coming in – but that’s exactly what makes it a blank canvas. 

With a bit of patience and vision, purchasing new land can be a fantastic investment. You’re looking at a piece that is essentially a property to invest on your own terms down the track. 

Learn more about how you can go about doing this in this article.

Why Invest in Land?

Let’s take a look at some of the major benefits and a few of the drawbacks:

Pros

Low Maintenance

One big plus with land is how low-maintenance it is. With no building on it, there aren’t going to be any leaky taps or repair bills – you pretty much just let it sit and (hopefully) appreciate over time. 

Low Holding Costs

The holding costs are low too: you’re not paying much in property taxes or insurance on an empty lot. And because vacant land usually costs less than a house, it gives a much lower entry point if you’re on a tight budget. 

Many people buy a block now and build later so they aren’t getting priced out of the property market when prices end up rising.

In fact, well-located land is a finite resource – as areas develop, an empty plot tends to become more desirable (they’re not making any more of it, as the saying goes). Unlike a house that gets old and needs repairs, the land itself won’t deteriorate – if anything, its value usually grows as the surrounding community expands. 

And if you decide to build in the future, you have the freedom to design exactly what you want on your land rather than being stuck with someone else’s layout. We’ve seen how limited supply can drive up land prices in some regions; for example, in Victoria a slow release of new lots over recent years has pushed prices higher due to pent-up demand.

Cons

Now for the slightly less exciting side of buying land:

Not Always Predictable 

It shouldn’t exactly be a surprise to learn that land investment usually requires a bit of patience. Values often inch up slowly year by year. But sometimes all it takes is one change – say a rezoning or new highway – for a quiet paddock to jump in value. 

Some investors deliberately buy on the fringes (a strategy known as land banking) hoping for that kind of development boom down the line.

The downside is that an empty block won’t pay you any rent in the meantime. You still have to cover expenses like council rates, maybe land tax, and loan interest out of your own pocket. 

That can add up, so make sure you can afford to hold the property long-term (smart investors even use negative gearing tax benefits to offset these costs). On the plus side, you might find creative ways to get a bit of cash flow from the land while you wait – for instance, leasing it out for parking or farming can help offset some costs. 

Banks also tend to be stricter with loans for vacant land – they consider it a speculative purchase and might require a larger deposit or stronger finances before approving a loan.

What to Consider Before You Buy

Doing your homework on the land is crucial. Location still matters a lot. A block way out in the sticks might be cheap and tempting at first glance, but land closer to towns or growing suburbs is more likely to gain value and is easier to sell or finance later – common sense.

If you’re planning to build a home or start a business on it eventually, make sure the area suits that – for example, a family home will benefit from schools and shops nearby.

Local Regulations

Always check the zoning and local regulations next. Verify that you’re allowed to build what you intend on the property. Some land is zoned only for farming or commercial use and not for residences, and some neighbourhoods allow only single-family houses (no apartment blocks). You don’t want to buy land thinking you can put, say, a workshop or a second house on it, only to find the council rules won’t allow it.

Future Prospects in the Neighbourhood

Also look into any future plans for the area. Is a major road extension or new subdivision planned that could affect your block? Those kinds of projects can either boost land value or give you massive headaches, depending on what they are. 

Local councils can tell you if any new highways or shopping centres are slated nearby, so you know what’s coming down the track.

Accessibility

Banks and buyers also care about access and services. Make sure the land has a proper road entrance – otherwise you might need to negotiate access via a neighbour’s property. Ideally it should have basic utilities available or at least nearby. 

If the block is off-grid with no power or town water, find out what it takes to get those set up. You might have to pay for electricity poles or install a septic system for sewage – costs that can add up quickly. Not always what you’ve got in mind when you’re thinking “I might get into property investment”. This is a big commitment you’ve got to be ready for.

The Land Itself

Consider the land’s terrain and condition too. A steep or oddly shaped lot might be hard to build on or subdivide later. And if a property’s price seems too good to be true, there could be a reason. 

For instance, it might have been an old landfill or industrial site, which could mean contamination issues. Be sure to read any covenants or other restrictions on the title as well, since they could limit your plans (for example, some estates require you to build within a certain time or to a particular design standard). 

Do your due diligence – talk to the council, maybe get a soil test – so you’re not caught off guard by any surprises.

Final Thoughts

In the end, buying undeveloped land in Australia is about seeing potential where others might not. Again, it’s more of a long-term play rather than a quick flip, but it can be really rewarding to watch your patch of earth increase steadily in value as the years go by. 

How Upscore Can Help

When you’re ready to make your move, having your finances lined up can make all the difference. Upscore’s Finance Passport helps you organise your finances for lenders, so you can get the best loan options without needless delay. Our service is free to use, and it’s designed to make borrowing overseas (or across state lines) feel as smooth as local finance.

Get started with Upscore’s Finance Passport today!

How Does Equity Work When Buying a Second Home?

Are you thinking of getting an investment property, or just want to know how equity works when buying a second home? In simple terms, equity is the part of your existing home that you actually own and not just what you’re borrowing. So it’s market value minus what you owe. 

For example, if your home is worth $800,000 and you owe $450,000 on the mortgage, your equity is $350,000. You can use that equity as part of the deposit on your next property. This means tapping the value already built up in your current home to fund the new purchase. 

Again, that could be for a buy-to-let type property investment or just a house you plan to use as a holiday home, since the mechanics are fairly similar either way. We’re going to break down all you need to know about how this works throughout this article.

Calculating Your Usable Equity

So not all of that equity we mentioned earlier is actually immediately borrowable because lenders usually lend up to about 80% of your home’s value. This means your usable equity is the result of 0.8 x your home’s value – loan balance. 

To use another example, on a $500,000 home with $320,000 owed, 80% of $500k is $400,000, minus $320,000 leaves you with $80,000 usable equity. Lenders like CommBank explain this sort of equation when you’re trying to tap into your equity: a $750,000 home with $400,000 owed has $350,000 equity, but only $200,000 usable (80% of value minus loan). 

This all essentially means that any deposit beyond your equity must come from you. Lenders generally expect about a 20% deposit (often called a “20 deposit”). If your equity only covers, say, 15% of the price, the remaining 5% has to be a cash deposit or savings.

Keep in mind you’ll still need a bit of extra cash for stamp duty and any fees on the second home.  If your usable equity isn’t enough for the full deposit and fees, you must make a cash contribution.

Using Equity to Fund the Second Home

In practice, you’ll be turning that equity into cash either by refinancing or getting a second mortgage. This is also generally one of the more popular ways to buy a second property. A common approach is a home loan top-up: you ask the lender to increase your existing mortgage and withdraw the extra as cash for the deposit. 

Alternatively, you might open a separate investment loan against your current home to get the funds. In any case, you’ve effectively borrowed against your own equity.

After the top-up, your mortgage on the original home has increased – you now owe more. For example, if you buy a $400,000 house using an $80,000 equity deposit, the new loan amount is $320,000, and you pay interest on than $320k just as on a normal mortgage. In other words, you’re still paying the lender interest on that money. 

Effectively, this means you’re taking advantage of the equity in your home to make this purchase comfortably.

Remember, your first home now secures the second loan too. We appreciate that this might all sound a bit complicated, but the main takeaway here is that using equity ties the two properties together financially.

Pros and Cons

So, what are the main arguments for using this method?

Pros

Using equity to buy a second home can be a good idea if you want to move fast. You’re not going to have to save years for a deposit, and a larger deposit can reduce or avoid lenders mortgage insurance (LMI). This can save you thousands in LMI premiums.

Cons

On the downside, you are increasing your total debt. Your repayments are going to get way bigger and make your cash flow a lot less manageable. You’re basically borrowing more money and increasing the amount you owe when you top up, so your bills go up.

Borrowing an extra $80,000 means paying interest on that $80,000 more debt. Also, keep in mind that investment home loans often carry slightly higher interest rates (0.2 – 0.4% more) than owner-occupier loans. 

Some investors even take a short interest-only period on the new loan to improve cash flow, but this means you won’t be building up equity as quickly. Every dollar you borrow via equity is one more dollar of debt you repay at interest.

Investment Property vs Personal Use

If the second home is rented out, the rental income you’re getting from that can definitely help cover the loan. In fact, rental income can give you a steady cashflow, and most of the mortgage interest and other costs on that loan are tax-deductible. You’d also be able to negative-gear any rental loss against their other income. 

On the other hand, if you’re just wanting it as a holiday home for personal use then you’re getting no rental income or tax deductions: you cover all interest and costs yourself. Also, any profit on sale will be fully taxable (since it was never your main residence), so you won’t get the main home CGT break. 

Borrowing Power and Advice

Before you make a decision, check your borrowing power – the amount the bank will lend you based on your:

• Income
• Expenses
• Existing debts

Even with your equity, lenders need to make sure you can actually service two loans. It’s smart to talk to a lending specialist or mortgage broker. Any proper home lending specialist can explain how your equity and borrowing power work together. 

Our service at Upscore also helps you compare home loans and lets you choose the best lender for your needs. And another thing to remember is that interest rates on the new loan will reflect current market levels. 

Just keep in mind that it’s not at all uncommon for lenders to charge a bit more on investment loans, and they tend to have different rules for interest-only or fixed terms. If you need some help sorting these details, a broker or even an online tool can calculate your borrowing power (which, again, you can do with Upscore) and match you to suitable home loans.

Grants and Final Thoughts

Unlike first-home buyers, there’s no general grant for second-home purchases in Australia. The First Home Owner Grant is only for first-timers, and most state incentives are only for specific cases.

So basically, there is no national “Second Home Buyers Grant.” (For example, Queensland’s new co-ownership plan was nicknamed the Second Home Buyers Grant, but it’s really just a shared-equity scheme, not a cash handout.)

In summary, using equity to buy a second home means converting the equity in your existing home into the deposit on another property. If you’re in doubt about how any of this works, get professional advice from a broker or financial adviser.

How Upscore Can Help

Ready to explore your options? Try signing up for Upscore’s Finance Passport. It will calculate your borrowing power based on your income and debts, then show you home loan options from different lenders that match your situation. 

Secure your Upscore Finance Passport now!

Buying Property in Australia on a Temporary Visa – All You Need to Know

How to Make a House Low-Maintenance

Homeownership is great, but maintenance is time-consuming to you and costly to your budget. In Australia, harsh sunshine, extreme temperatures, and ocean salt all expedite deterioration. The silver lining is that there are logical ways to restrict home maintenance without sacrificing style or comfort. 

Whether you’re a new home builder, rebuilding, or just making over a house, these tips allow you to build a home that’s:

• Practical
• Resilient
• Low Maintenance

Use Hardy Outside Material

The outside of a house is exposed to everything harsh in nature. The use of resilient, weathered material can restrict maintenance work to you. For exterior walls and exterior cladding, fibre cement boards or bricks resist Australia’s sun, storms, and high winds. 

They don’t crack as easily, either, and are naturally resistant to wood-damaging pests like termites. Colourbond metal roofs are a favourite for their durability, rust resistance, and low maintenance for recoating. Also, they keep heat out—a plus when you want to stay cool in summer.

Luse paints and finishes that are engineered to resist Australia’s climate. Some exterior paints have UV protection that holds their colour better, decreasing the paint work you need to do to keep their colour up. In bushfire-prone areas, use a material that’s fire-resistive to Australian standards. This keeps you safer, yet limits costly repairs caused by bad weather or natural forces.

Simplify Your Landscaping

Your yard or garden can be a big maintenance chore when you use high-maintenance flowers. You’d be better off opting for low-maintenance Aussie natives such as:

• Kangaroo Paw
• Bottlebrush
• Grevillea

Native flowers require little watering or fertiliser, and many resist pests that destroy exotic flowers. Ground cover such as creeping boobialla takes over hard-to-cut areas of lawn, freeing up time that would otherwise be used to use a lawnmower.

Furthermore, an efficient irrigation system minimises yard work even more. Drip irrigation targets water at the roots, wasting less water and giving you healthier plants. You could use an auto timer to control watering in cooler parts of the day when there is low evaporation. 

Mulching around flowers also keeps them moist, prevents weed growth, and presents gardens in a neat arrangement without requiring a lot of effort.

Make Pathways and Decking Low-Maintenance

Hard landscaping such as walkways, driveways, and decks need special maintenance if they’re made of a material that stains, discolours, or warps. With decks, composite decking material is a better option. It looks just like timber without splitting, rotting, or staining needs. It generally only needs some light sweeping or hosing to maintain it.

For walkways and driveways, use textured concrete or pavers. Pavers or textured concrete easily withstand heavy foot traffic and rough weather. A concrete driveway is a great option for durability, but apply a sealant that protects it from oil drips or weather deterioration. 

Dark-coloured pavers hide stains and dirt better than shades of light-coloured pavers, requiring less washing.

Design Interior to be Durable

Inside the home, surfaces that can withstand day-to-day use will require fewer repairs over time. Tiles or vinyl planks are great for flooring, resistant to spilling, scratches, and fading. And they’re a breeze to clean up, a great bonus in busy homes. If you prefer carpet in certain rooms, use a spill-repelling type. Carpet in heavy-use areas, often described as pet or child-friendly, holds up well and resists matting.

For walls, washable paint or semi-gloss paint in high-mess areas (kitchens or children’s play areas) is a lifesaver. Quick wipedowns get most marks to disappear without having to repaint frequently. Time and effort are saved, and walls stay at their best for a longer time.

Use Fixtures and Fittings That Are Low-Maintenance

As you choose fixtures such as taps, light switches, and handle components, note how easy it is to clean and maintain it. Stainless steel or brushed nickel fittings resist fingerprints and smudges more easily than highly polished finishes. 

In kitchens and bathrooms, sinks that sit under-mounted have fewer creases and corners where dirt builds up, making it easy to wipe counters straight into the sink without hassle.

Use plain, contemporary-looking shower screens, cabinets, and countertops. Frameless shower screens cut soap scum build-up around edges, and high-quality stone or solid surface countertops resist staining from spills. 

Soft-close drawers and cabinets cut the potential for damage over time, making it last longer.

Utilise Smart Home Technology

Smart technology means you control your home without a great deal of effort. Smart lights allow you to program lights to turn off automatically when you do not need them – a major money saver regarding bulb replacement and electricity. Smart air conditioners and thermostats set temperatures in response to patterns of use to cool or heat more efficiently.

For convenience and security, install a smart security system that has cameras and motion detectors. Even when you’re not home, you can view events using a phone application.

Some systems even provide leak or fire detection that alerts you in time to take action before harm is done. The initial cost of installing smart devices is more than recouped in:

• Time Saved
• Appliance Wear Minimised
• Unexpected Repairs Avoided

Give Top Priority to Proper Ventilation

A home with good ventilation stays fresh, dry, and mold-free. Roof vents, eave vents, and properly placed windows are crucial for circulating air, particularly in regions with high humidity. 

Good airflow prevents moisture buildup that can damage walls and ceilings. Ceiling fans can also help move air around and reduce reliance on air conditioning. Lower humidity levels lead to less mildew growth in bathrooms and kitchens, meaning you spend less time scrubbing surfaces.

In wet areas like bathrooms and laundries, install exhaust fans that vent to the outside. This setup prevents steam from settling and causing paint or grout issues. Consider using mould-resistant grout or silicone sealant for tiles, which lasts longer and needs less upkeep.

Create a Storage and Organisation Plan

A clutter-free house is easy to maintain. If you put everything in its place, it takes less time to keep surfaces clear. Built-in storage solutions such as wardrobes with sliding doors or cabinetry in nooks make tidying up quick. 

Open shelves can be aesthetically pleasing but become dusty when untidy. Counteract this by storing day-to-day objects in easy-to-get-to places and occasional objects in enclosed areas.

Incorporate Easy Maintenance Landscaping

Outdoor living is a huge part of the Australian lifestyle, so include comfortable spaces without creating extra chores. When designing patios or alfresco areas, opt for materials that resist weather-related damage. Stone pavers, sealed concrete, or composite decking handle heavy use while offering easy maintenance. A roof or pergola over the area protects outdoor furniture from sun and rain, reducing how often you need to clean or replace it.

Try container gardening for herbs or small flowers instead of large-scale garden beds. Containers let you manage soil quality and pest control more precisely, saving water and fertiliser. They’re also easy to rearrange or replace if a plant doesn’t do well.

Conclusion

Whether you’re designing from scratch or updating an existing space, these strategies will give you more time to enjoy your home and less time stressing over repairs.

How Our Finance Passport Can Help

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How to Positively Gear an Investment Property in Australia

Property investment is a go-to wealth creation strategy in Australia. Many investors enjoy “positively gearing” a property. With positive gearing, rental incomes pay for overall property and maintenance expenses, and monthly profit is positive. 

By positively gearing your property, you can maximise your cash flow, reduce your mortgage, and make your financial position a whole lot less stressful. It isn’t a speedy wealth creation scheme, but with careful planning and consideration for fundamentals, it can become a profitable wealth creation tool in the long term. 

Let’s have a quick glance at positively gearing your property, beginning with location selection through smart expense planning.

1. Learn About Positive Gearing

Positive gearing occurs when your income earned through your investment property (mainly through rentals) surpasses your overall expenses, including your:

• Mortgage Payments
• Insurance
• Maintenance
• Council Rates
• Property Management Fees

You make a profit each week or month, and your opportunities to create savings or invest in yet another asset become brighter.

To many property investors in Australia, positive gearing will become less stressful simply because it reduces the use of one’s own funds in financing property expenses. Having a guaranteed monthly cash flow is an attraction, particularly when interest rates rise or if any nasty expenses occur that one hadn’t planned for. 

However, don’t forget that getting a positively geared property will sometimes require careful investigation, level-headed thinking, and sound negotiation techniques.

2. Understand the Perks of Positive Gearing

Positive gearing carries a range of specific advantages. For one, it creates continuous cash flow. As long as you collect more in rent than you spend in outgoings, you build a buffer fund. That extra cash can cover any unplanned property expenses or downtime.

Secondly, lenders will perceive a positively geared property in a positive manner, especially if your desire is to expand your property portfolio. If you plan to expand your property portfolio, having a positively geared property on your books can help you borrow funds for additional properties because you appear more financially stable.

Finally, positive gearing doesn’t overstrain your living budget. You won’t have to dip into your savings to fund your property, so you can enjoy your current living expenses and build an asset at the same time.

If your property appreciates in value over time, you might also enjoy a capital gain, adding further to your wealth.

3. Get the Best Location

One key to a positively geared property is selecting a location with high rental demand and strong rental yields. Regional areas in Australia can sometimes provide higher rental returns compared to capital cities, although certain pockets of major cities may also offer solid yields if you know where to look. 

Consider suburbs with:

• Strong Employment Rates
• Proximity to Transportation
• Local Amenities
• Planned Infrastructure Developments

Areas near universities, hospitals, or large shopping centres often attract stable rental demand.

Research similar properties in your target suburb to see their rental prices and occupancy rates. Look for signs of population growth, such as new housing developments and job opportunities. When a location shows signs of expansion and improvement, property values and rental demand often rise in tandem.

4. Do the Maths

Positive gearing isn’t a case of charging a high week-by-week rent. All your expenses must be kept low enough for your margin to have a profit over.

1. First, budget for all your ongoing expenses: mortgage payments, council rates, water (if you pay them as a landlord), landlord’s insurance, property manager’s fee, and maintenance.
2. Next, work out a fair price for your rent by comparing similar nearby properties. Be careful when estimating your rent for future fluctuations in the marketplace. 
3. If you set your rent at the high end and the market dips, you risk extended vacancies, so make your price competitive, considering your competition in your locality. Pricing your property a little below your competition can win you long-term, reliable tenants and sometimes less vacancy and less advertisement cost.

A consistent, albeit modest, positive cash flow is better than a theoretical, high-dollar return offset by long vacancy gaps.

5. Secure a Suitable Mortgage

Your mortgage structure plays a huge role in determining whether you can positively gear a property. An interest-only loan can reduce your monthly outlay because you only pay interest rather than principal repayments during the initial interest-only period. 

However, you should be aware that once the loan reverts to principal and interest repayments, your costs will rise. If your rent doesn’t increase proportionally, you might lose your positive gearing status.

Alternatively, a principal-and-interest loan might help you pay off the property faster. This approach gives you the chance to build equity more rapidly, though your monthly repayments will be higher. 

Whichever structure you choose, ensure you can handle rate fluctuations. If interest rates increase, your mortgage costs rise, and your positive cash flow might shrink or vanish unless your rent also goes up.

6. Keep an Eye on Taxes

Although positive gearing generally means you’ll earn a profit each year, you’ll need to budget for additional tax obligations. 

In Australia, rental income is taxable. When you’re positively geared, you can’t claim a tax deduction for a net loss as you would with a negatively geared property – because there isn’t a loss to claim. However, you can still deduct expenses like property management fees, repairs, depreciation on certain items, and the interest portion of your loan.

Careful record-keeping ensures you stay compliant and claim every valid deduction. Consult a tax accountant who understands the Australian property market and investment regulations. Proper guidance can help you maximise deductions, remain legally compliant, and plan for possible changes in tax policy.

Furthermore, if you’re interested in securing a mortgage without hassle overseas or in Australia, use our free FinancePassport service to simplify the process.

7. Monitor Continuing Costs

Positive gearing isn’t a one-off when you purchase your property. You will have to maintain your expenses below your earnings through rentals. 

Begin with a routine maintenance schedule. That minor maintenance performed early can save a costly overhaul down the line. Properties in a sound state will have high-quality tenants, and high-quality tenants will pay for your property and care for your property long-term.

Review your mortgage regularly to see whether refinancing can save your fee and interest payments. Furthermore, bargain with your insurance companies to make sure that you’re not overcharging for landlord coverage. 

You can also renegotiate property management fees if your agent has handled your property for a long time with minimal issues. Even incremental savings, like a small interest rate cut or a discounted insurance premium, can maintain your positive cash flow.

8. Expand with Caution

Once you experience success with a positively geared property, you might consider purchasing another. Positive gearing puts you in a stronger position to borrow for a second investment because you have an income-producing asset rather than a loss-making one on your credit record.

However, don’t rush into expansion before you confirm that your first property is truly stable. Ensure you have enough cash reserves and that you understand local markets in any new location. 

Diversifying across different states or property types can spread risk, but only if you have a solid financial cushion.

Conclusion

Positively gearing an investment property in Australia promises immediate cash flow and a strategic path to long-term wealth creation. This approach reduces the strain on personal finances, helps you qualify for more lending options, and supports a more robust property portfolio. 

However, positive gearing isn’t automatic – thorough research, careful budgeting, and a proactive management style determine how well your property performs.

Get Started On Your Positive Gearing Strategy

Ready to turn your investment goals into reality? Upscore’s Finance Passport helps you compare multiple lenders and secure great mortgage deals – whether you’re investing in Australia or beyond – all without any fees. Start optimising your cash flow today with Upscore!

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