The fly-in, fly-out lifestyle is one of risk and reward. Workers experience long hours in some of Australia’s most remote areas, but are rewarded with lucrative salaries.
The nature of this lifestyle can take a physical toll, and tradies like Michael Phillips, 28, know that a FIFO career can’t last forever.
That is why Mr Phillips, a metallurgist in WA’s resources sector, has been turning mining money into a property portfolio that pumps out passive income, buying up investment homes ever since he graduated from university.
He now owns six properties, purchased for approximately $2.7m in total, amassing a portfolio he now values at around $4m due to recent home value rises.
Michael Phillips built a $4m property portfolio before turning 30. Picture: Supplied
“I guess it started probably towards the end of uni,” Mr Phillips said.
“I basically saved up a deposit throughout uni, working at The Reject Shop for five years and working nightfill for the last two years of uni … I just saved like crazy.”
After graduating, Mr Phillips said going from a minimum wage to a mining salary was “pretty crazy” and gave him the platform to buy an investment property.
In 2021 he bought his first property, a four-bedroom, two-bathroom house in Seville Grove, Perth, for around $300,000.
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FIFO workers boarding their plane at dusk in Port Hedland, WA. Picture: Getty Images
He followed this purchase with another home in Mandurah, 72km south of Perth, which he also bought for approximately $300,000.
After purchasing another property independently, Michael partnered with InvestorKit to acquire three more properties in Mildura (VIC), Townsville and Bundaberg (QLD), now owning six homes before turning 30.
Mr Phillips said his investment strategy was “honestly pretty simple”.
“Save a 20 per cent deposit each time, control what you can control, manage your yields and then manage your risk by buying in different states,” he said.
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Mine site workers spend long periods in some of Australia’s most remote regions.
Mr Phillips said he has generally targeted properties valued in the $500,000-$550,000 range, buying in regions that show a rental yield above four per cent.
“I like a balance between cashflow and growth, because I want to continue to grow the portfolio,” he noted.
Mr Phillips bought his three most recent properties after consulting with InvestorKit CEO Arjun Paliwal.
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One of Mr Phillips’ first homes was purchased in Mandurah, WA. Picture: iStock
According to Mr Paliwal, it was becoming more common for FIFO workers and tradies to start building investment portfolios during their time at home.
He said this was due to a combination of factors, like extended time away from distractions, strong wages and the FIFO lifestyle leaving them with fewer expenses.
“So much of their food, accommodation and other things are provided during that time (on site),” he noted.
Mr Paliwal said the isolation of FIFO life can leave people with a lot of time to reflect.
“You get a lot of time to think,” he said.
“For some people, they go back home and party away, but for other people like Michael, they want to think about their future.”
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InvestorKit CEO Arjun Paliwal. Picture: Supplied
As with Mr Phillip’s investments, Mr Paliwal said diversification was key to building a successful portfolio.
“That diversity across multiple states stops you falling in love with the idea of ‘what’s the property market doing?’,” he said.
“There is no one property market, because you’re spread across the country and property becomes like an ETF.”
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