As a FIFO worker, you're in a unique position when it comes to buying your first home. Your income might be higher than average, but your work schedule presents some interesting challenges and opportunities. One option that's particularly attractive for FIFO workers is purchasing a duplex as your first investment property.
Why a duplex works well for FIFO workers
When you're away for weeks at a time, having a property that generates rental income makes perfect sense. A duplex allows you to:
• Live in one half when you're home on break
• Rent out the other half for ongoing income
• Potentially rent out both sides if you prefer to stay elsewhere
• Build equity in the property market while you work
This arrangement can help offset your mortgage payments and make your loan amount more manageable, especially when you factor in the costs associated with buying a home like stamp duty and other fees.
Understanding your borrowing capacity
As a FIFO worker, your financial situation might look different from traditional employees. Many lenders now recognise FIFO income patterns, but the application process still requires careful preparation. You'll need to provide:
• Recent bank statements showing your income deposits
• Employment contracts or letters
• Tax returns demonstrating consistent earnings
• Details of your work roster and income structure
A Home Finance & Mortgage Broker who understands the FIFO industry can help present your application in the most favourable way to lenders across Australia.
Loan options and government support
When buying your first home, you'll want to explore all available options:
Government schemes and grants:
• First home owner grants (FHOG) - amounts vary by state
• Home Guarantee Scheme - potentially avoid lenders mortgage insurance (LMI)
• First time home buyer programs specific to your state
• Various first time home buyer schemes that might reduce stamp duty
Loan structures to consider:
• Variable interest rate loans for flexibility
• Fixed interest rate options for payment certainty
• Investment loan options if you plan to rent both sides
• Offset account features to reduce interest charges
Managing loan to value ratio (LVR) and costs
Duplexes can be more expensive than standard homes, which affects your loan to value ratio. If you're borrowing more than 80% of the property value, you'll likely need to pay lenders mortgage insurance (LMI). However, some first time home buyer programs and the Home Guarantee Scheme can help you avoid this cost.
The benefits of working with a mortgage broker include access to various packages and interest rate discounts that might not be available if you apply for a home loan directly with a single lender.
The application process for FIFO workers
Applying for a home loan as a FIFO worker requires some additional considerations. A streamlined application process is important when you're working to tight rosters. Here's what typically happens:
- Initial consultation - discuss your goals and financial position
- Pre-approval - get pre-approved to understand your borrowing limits
- Property search - look for suitable duplexes in your target area
- Formal application - submit your investment loan application
- Settlement - finalise your purchase and become a property owner
Making the most of your investment
Buying your first home as a duplex investment requires careful planning. Consider:
• Location factors that appeal to renters
• Rental yields in your chosen area
• Your own accommodation needs during breaks
• Future plans for property expansion or upgrades
• Tax implications of rental income and deductions
Access to nationwide lenders
Working with a mortgage broker gives you access to banks and lenders nationwide, not just your local area. This is particularly valuable for FIFO workers who might be purchasing in a different state from where they work. Different lenders have varying appetites for FIFO borrowers and investment loans, so having access to multiple options increases your chances of securing favourable terms.
Getting started with your duplex purchase
The key to success is working with professionals who understand both the FIFO lifestyle and investment property purchases. They can help you understand which first Home Loan options suit your situation and guide you through the complexities of buying an investment property as your first home.
Remember, buying a home is a significant decision, and a duplex purchase adds extra considerations around rental management, tenant selection, and property maintenance while you're away on shift.
Call one of our team or book an appointment at a time that works for you to discuss how a duplex purchase could work for your specific situation and FIFO schedule.
