As a FIFO worker in Queensland, your unique income structure and lifestyle present both opportunities and challenges when it comes to buying an investment property. Understanding how to leverage your earning potential through investment loan options can set you up for long-term financial success.
Why FIFO Workers Should Consider Property Investment
Your FIFO income often exceeds traditional full-time salaries, giving you substantial borrowing capacity for investment purposes. Investing in real estate allows you to:
• Build wealth through capital growth and rental income
• Take advantage of negative gearing benefits
• Diversify your income beyond mining work
• Create passive income streams for your future
The key is finding lenders who understand FIFO work patterns and can assess your application accordingly.
Understanding Investment Loan Basics
When buying a rental property, you'll need an investment property loan rather than a standard home loan. These loans typically have:
• Higher interest rates compared to owner-occupier loans
• Different loan to value ratio (LVR) requirements
• Potential lenders mortgage insurance (LMI) costs
• Various investment loan features tailored for property investors
Most lenders will finance up to 80% of the property value without LMI, though some may go to 90% with insurance included.
Types of Investment Properties to Consider
Your property investment strategy should align with your goals and budget. Popular options include:
Apartments: Often lower entry point, good rental yield in urban areas
Town houses: Balance between affordability and growth potential
Stand alone dwellings: Typically stronger capital growth, appeals to families
When you research property options, consider factors like location, rental demand, and potential for capital growth.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at FIFO Home Loans today.
Investment Loan Interest Rate Options
You'll need to choose between variable interest rate and fixed interest rate options:
Variable rates fluctuate with market conditions but often start lower and may include interest rate discounts or offset account features.
Fixed rates provide certainty for budgeting, especially helpful when calculating investment loan repayments for your FIFO income planning.
Many investors choose a split loan combining both rate types to balance flexibility and certainty.
The Investment Loan Application Process
Applying for an investment loan involves several steps:
- Assessment of borrowing capacity based on your FIFO income
- Property selection and purchase contract
- Loan application with required documentation
- Property valuation by the lender
- Loan approval and settlement
Your investment loan application will require bank statements, FIFO employment contracts, and evidence of your deposit. A streamlined application process helps, especially when you're on-site and have limited availability.
Key Costs to Consider
Beyond the loan amount, factor in these investment property costs:
• Stamp duty: Varies by state and property value
• Legal and inspection fees: Usually $2,000-$5,000
• Lenders mortgage insurance: If borrowing above 80% LVR
• Ongoing costs: Property management, maintenance, insurance
Building Your Investment Property Portfolio
Many FIFO workers start with their first investment property and gradually build a portfolio. Your strong income can support multiple investment loans, but consider:
• Market conditions and property market cycles
• Geographic diversification
• Different property types for varied rental yield
• Tax implications of negative gearing across multiple properties
Getting the Right Support
Working with a mortgage broker who understands FIFO income can make a significant difference. We can:
• Access investment loan options from banks and lenders across Australia
• Compare rates and features across different lenders
• Handle applications while you're on-site
• Explain complex investment loan features and tax implications
Your property investment journey doesn't have to wait until you finish FIFO work – with the right loan structure and professional support, you can start building wealth now.
Call one of our team or book an appointment at a time that works for you to discuss your investment property goals and explore suitable loan options.
