If you’re working FIFO and earning six figures, you’re in an incredibly strong financial position. Yet many FIFO workers find themselves in the “golden handcuffs” situation: high income, but little to show for it at the end of the year. Sound familiar?
The good news is that your FIFO income and lifestyle actually make you an ideal candidate for property investment. Here’s why, and what you need to know.
WHY FIFO WORKERS MAKE EXCELLENT PROPERTY INVESTORS
Your work situation creates several unique advantages when it comes to building wealth through property:
Strong Borrowing Capacity
With salaries typically ranging from $90,000 to $170,000 or more, FIFO workers have the income to comfortably service loans on quality investment properties. Banks view stable FIFO contracts favourably, giving you access to competitive lending rates.
Low Living Expenses During Swings
When you’re on site, your accommodation, meals, and transport are covered. This means more disposable income available for loan repayments and building equity. The money you earn on site can go directly toward wealth building rather than day-to-day expenses.
Automatic Savings Structure
A mortgage creates forced savings. Every repayment builds equity automatically, without requiring ongoing willpower or decision-making. This is particularly valuable during R&R periods when discretionary spending can be tempting.
Passive Investment Perfect for Your Schedule
Property investment requires minimal ongoing time commitment. Professional property managers handle tenant issues, maintenance, and rent collection while you’re away on swing. You don’t need to be physically present or spend hours managing your investment.
Long Term Exit Strategy
FIFO work is physically demanding and not sustainable over the long term. Investment property builds a passive income stream that can support your transition when you’re ready to step away from fly-in, fly-out work.
UNDERSTANDING THE TAX BENEFITS
One of the most significant advantages of investment property for high-income earners is the tax treatment. When you own an investment property, you can claim several types of deductions that reduce your taxable income.
Common Deductible Expenses Include:
- Loan interest (typically your largest expense)
- Property management fees
- Council rates and insurance
- Repairs and maintenance
- Depreciation on the building structure and fixtures
For new properties, depreciation alone can provide substantial deductions. The building structure and items like carpets, appliances, and air conditioning systems depreciate over time, and these paper losses can be claimed against your income.
The EOFY Consideration
To claim investment property deductions for the current financial year, the settlement must occur before June 30. With the end of the financial year approaching, now is the time to explore options if you want to maximise your deductions for this tax year.
WHAT YOU NEED TO KNOW BEFORE PROCEEDING
While property investment offers significant potential benefits, it’s not a decision to rush into without proper guidance.
Speak to Professionals First
This article provides general information only and is not financial advice. Before making any property investment decisions, you should consult with:
- A qualified accountant who understands your personal tax situation
- A financial advisor who can assess your overall financial position
- A mortgage broker experienced with FIFO workers and investment lending
Every person’s financial situation is different. What works for one FIFO worker may not be appropriate for another. Professional advisors can help you understand how property investment fits into your specific circumstances.
Consider Your Personal Situation
Ask yourself these important questions:
- How stable is your FIFO employment contract?
- Do you have an emergency fund to cover unexpected expenses?
- Are you comfortable taking on investment debt?
- What are your short-term and long-term financial goals?
- Do you have existing debts that should be addressed first?
Location and Property Type Matter
Not all investment properties are created equal. Factors like location, property type, rental demand, and growth potential all impact your investment returns. This is where working with experienced property professionals becomes valuable.
HOW BUY NEW QUEENSLAND CAN HELP
While we strongly encourage you to seek independent financial and tax advice about your personal situation, we specialise in helping FIFO workers find investment properties that suit their specific needs and goals.
Our Expertise Includes:
- Understanding the unique financial position of FIFO workers
- Access to quality investment properties across Queensland, Victoria and other locations.
- Connections to mortgage brokers who specialise in FIFO lending
- Knowledge of locations with strong rental demand and growth potential
We have completed properties available now, which is particularly relevant if you’re considering making a purchase before the June 30 deadline. Our team can walk you through the process and help you understand what’s involved, with no obligation.
Ready to Explore Your Options?
If you’re earning good money in FIFO work but want to ensure you’re building long-term wealth, investment property could be worth exploring. Remember, the key is getting proper advice specific to your situation before proceeding.
Contact BuyNewQueensland today to discuss your investment property options. We’ll take the time to understand your goals and help you find a property that aligns with your needs.
Visit buynewqueensland.com.au or reach out directly to start the conversation. Your FIFO income is a powerful wealth-building tool when used strategically.
Important Disclaimer: This article is for general information purposes only and does not constitute financial, tax, or investment advice. Every individual’s financial situation is unique. Before making any investment decisions, you should consult with qualified professionals, including an accountant, financial advisor, and mortgage broker who can assess your specific circumstances. BuyNewQueensland provides property solutions and education, but does not provide financial or tax advice.
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