How to Reach Financial Independence in 12 Months by Moving to Kalgoorlie
If you’re dreaming of financial independence but stuck in an expensive city or living paycheck to paycheck, consider this strategy: move to Kalgoorlie, land a well-paying job, buy a house with roommates, and let them help pay your mortgage. Let’s break down how you could achieve $40,000/year in positive cashflow—and live free from financial stress—in just 12 months.
Please note - nothing in this document is financial advice, this arcticle is for entertainment purposes only.
🌟 Step 1: Land a Mining Job at $38/hr (or More!)
Kalgoorlie is booming with mining jobs—even entry-level positions can pay around $38/hr, giving you:
$38/hr x 40 hours/week x 52 weeks = ~$76,000/year gross
After tax, you’d take home around $60,000/year.
👉 If you have any trade skills (mechanical, electrical, welding, machinery operation), you could land roles paying $45/hr, $50/hr, or more, accelerating your savings and helping you reach financial independence even faster.
🌟 Step 2: Understand What You Actually Need to Live On
Before you dive in, ask yourself: What do I really need to survive?
✅ Housing costs — This strategy aims to eliminate them by living in your own house with roommates paying rent.
✅ Transport costs — Many employers provide free buses to site or even a company car, so you might not need to own a vehicle at all.
✅ Food and basics — Work out what it costs to eat, pay for essentials (utilities, phone, insurance), and set a frugal but realistic budget.
👉 Understanding these costs helps you save faster and ensures your financial independence plan is rock solid.
🌟 Step 3: Save Aggressively
Here’s how to make it happen:
✅ Housing: At first, consider shared accommodation or even employer-provided housing if it’s available. This can save you thousands each month.
✅ Transport: Many mining companies provide free bus services to site, or even a company vehicle. If you can take advantage of this, you’ll avoid car payments, insurance, fuel, and maintenance.
✅ Food & Basics: Stick to a simple, home-cooked diet (think pasta, rice, and bulk buys) and avoid expensive takeout or alcohol.
👉 Goal: Save at least $25,000 for:
Deposit on your first home: 5% of $280,000–$300,000 = $14,000–$15,000
Closing costs, repairs & fees: $8,000–$10,000
If you manage to get a higher paying job, or save on transport and housing even more aggressively, you might even reach higher—giving you a bigger buffer and more flexibility when buying your first home.
This kind of disciplined saving takes real commitment, but the payoff is huge: with that deposit, you’re ready to buy your first property and start your journey to financial independence.
🌟 Step 4: Buy Your First Home at the 6-Month Mark
At the 6-month mark, buy your first house in Kalgoorlie. You have a few options:
✅ A 3-bedroom fixer-upper for $280,000 or less.
✅ A 4-bedroom home for $300,000
✅ A cheaper property (often under $250,000) that might need some renovation
👉 You can get into this first home with just a 5% deposit, which is:
$12,500–$15,000, plus around $10,000 in fees/repairs.
Rent out the extra rooms to cover your mortgage:
3-bedroom: 2 rooms @ $260/week each = $27,040/year
4-bedroom: 3 rooms @ $260/week each = $40,560/year
⚖️ Legal & Tax Reminders (WA + ATO)
✅ Tax Reporting:
Rent collected is taxable income. Offset it with expenses: mortgage interest, maintenance, rates, depreciation (via a quantity surveyor report).
✅ Depreciation Claims:
Claim wear and tear on buildings and appliances—significant tax benefits.
✅ Capital Gains Tax (CGT):
First home usually exempt (if you live in it), but investment properties will be taxed on sale (50% discount if held >12 months).
✅ Room-by-Room Risks:
Not all lenders allow it—check your mortgage conditions.
Some insurers won’t cover properties with multiple unrelated tenants—ensure you have landlord insurance that covers share housing.
✅ Tenancy Compliance:
Use written agreements (lodger or tenant) and keep maintenance and safety up to WA standards.
🌟 Step 5: Build Positive Cashflow
This step is crucial—it’s where you start creating wealth from your first property. Let’s explore different options:
🔑 Scenario 1: 3-Bedroom House
Purchase price: $280,000
Interest-only mortgage at 6.5%: $18,200/year
Rates, insurance, maintenance: ~$4,000/year
Rent: 2 rooms @ $260/week = $27,040/year
Positive cashflow: ~$4,840/year
🔑 Scenario 2: 4-Bedroom House
Purchase price: $300,000
Interest-only mortgage at 6.5%: $19,500/year
Rates, insurance, maintenance: ~$4,500/year
Rent: 3 rooms @ $260/week = $40,560/year
Positive cashflow: ~$16,560/year
🔑 Scenario 3: Cheaper Fixer-Upper
Purchase price: $250,000
Interest-only mortgage at 6.5%: $16,250/year
Rates, insurance, maintenance: ~$4,000/year
Rent: 2 rooms @ $260/week = $27,040/year
Positive cashflow: ~$6,790/year
👉 More bedrooms = more rent = faster savings = faster financial independence. A cheaper house can also boost cashflow thanks to lower repayments.
🌟 Step 6: Buy Your First Investment Property at 12 Months
With savings from your first property and any wage surplus, you can buy a second investment property at the 12-month mark. Here’s the plan:
✅ Save a 10% deposit on the second property.
✅ Use a room-by-room rental strategy again to maximize rent.
Example:
4-bedroom house for $320,000
10% deposit = $32,000, plus $10,000 in fees/repairs = $42,000
Interest-only mortgage at 6.5% = $20,800/year
Rates, insurance, maintenance = $5,000/year
Rent: 4 rooms @ $260/week = $54,080/year
Positive cashflow: ~$28,280/year
🌟 Step 7: Hit $40,000/Year in Positive Cashflow
Now combine the cashflow:
✅ First property: Depending on your choice, could be $5,000–$16,000/year
✅ Second property: ~$28,000/year
Total: $33,000–$44,000/year positive cashflow—enough to cover most people’s living expenses in Kalgoorlie!
👉 If you’re able to secure a 4-bedroom house at the start, your cashflow could hit $40,000/year even faster.
⚠️ Financial Freedom in 12 Months—But It’s Not for Everyone
This strategy can deliver financial freedom in 12 months, but it’s not for everyone. You’ll need:
✅ A willingness to work hard (often in challenging conditions)
✅ A realistic budget and disciplined savings
✅ The courage to manage a rental property—handling maintenance, tenants, and occasional headaches
✅ The drive to keep learning and growing
👉 If you’re up for the challenge, financial freedom in 12 months is achievable—but you have to put in the work and be smart about it.
🚀 Final Thoughts
Kalgoorlie offers a realistic path to financial independence by combining:
✅ High-paying jobs (especially if you have trade skills)
✅ Affordable property prices
✅ Room-by-room rentals to boost cashflow
✅ Employer-supplied transport or company vehicles, cutting your living costs
With a clear plan—buying your own home at 6 months with a 5% deposit, then an investment property at 12 months with a 10% deposit—you could hit $40,000/year in positive cashflow in just one year.
That’s real financial freedom: your housing is covered, your bills are paid, and you’re on your way to building serious wealth.
Ready to take the plunge? Send me a message and I would be happy to help you out.