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Investment for Doctors: The ultimate guide to your options

Photo by: Myriam Zilles on Unsplash.

Whether you’re a junior doctor or an experienced medical professional, you may have considered if property investment is for you. Understandably, you may have been put off or discouraged from seeking advice due to the competitive property market and the complex process of investing. However, with interest rates at record lows and many lenders creating specialised home loans for doctors, there’s never been a better time to consider investing in property.

As low-risk borrowers, doctors have access to exclusive benefits and discounts when buying a home. By partnering with a broker, you could access a range of perks on your loan and buy a valuable asset to supplement your income. These offers are not limited to domestic doctors either. If you are a doctor living overseas who’s looking to invest in property in Australia, you can also access the same benefits. Learn more with our special guide on investing for expats.

In this article, we’ll give you a brief guide on investment for doctors and provide some tips for property investment. We’ll also explain how a mortgage broker for doctors can help you make the most out of property investment:

  • What are the benefits of investment for doctors?
  • Tips for investment for doctors
  • ‘Rentvesting’: a new investment option  
  • How a mortgage broker for doctors can help

What are the benefits of investment for doctors?

Investing in property can be a highly valuable opportunity for anyone looking to supplement their income. Yet, it’s especially valuable for doctors. As the most reliable form of investing in Australia, you can create stable, long-term investments with the right financial advice.

So, what are these benefits? Many lenders have specialised home loans for doctors, which involve a range of unique offers. As a doctor, you can:

  • Avoid paying LMI (Lender’s Mortgage Insurance) when borrowing up to 100% of your property’s value
  • Get into the property market without a 20% deposit or a guarantor
  • Be eligible for exclusive interest rates lower than a bank’s advertised rates
  • Receive up to $2 000 in cashback

Although it can take time to see substantial returns on property investment, good things do come to those who wait. With careful planning and the right financial support, an investment property can become an extremely valuable asset in the long term.

Tips for investing for doctors

As a doctor, investing can be particularly beneficial for supplementing your income and establishing yourself in the property market. Here are a few helpful tips to get you started:

  • Become a member of the relevant industry in your field (e.g., the Australian Medical Association.)
  • Thoroughly research the area you want to invest in. Is it a growth suburb? What is the median property price in the area? Are these properties affordable?
  • Thoroughly research the investment property you want to buy. It is close to schools, shops, public transport and other facilities? Is it in good condition or does it require renovations or repairments?
  • Determine whether your profession is listed on the acceptable list of professions for home loans for doctors. These can differ between lenders.
  • Determine your borrowing capacity so you’re certain you can pay off your loan
  • Determine whether you can afford a 20% deposit and other home loan costs (stamp duty, legal costs, etc.)

For more information on property investment, you can check out our other articles, such as our investment guide, our tips for buying an investment property and our advice for first-time property investors.

‘Rentvesting’: a new investing option

Rentvesting is an increasingly popular way to enter the investment property market and is particularly accessible to doctors. Although it’s a relatively new phenomenon, rentvesting is becoming an increasingly popular way to enter the investment property market sooner rather than later.

So, what is ‘rentvesting’? If you’re not familiar with the term, rentvesting involves buying an investment property while you’re still renting the property you’re living in. This option works well for junior doctors and medical professionals who relocate frequently and can’t afford to buy their own homes yet. Not to mention, up to a third of first home buyers are currently rentvesting, so don’t fall behind!

Benefits of rentvesting

As you start your career, you may not be able to afford a home or live in your most desired suburb. By renting a property in a more affordable area or closer to your workplace (particularly if you’re completing a regional or rural placement) and buying an investment property near the CBD or in a growth suburb, you can experience all the benefits of an investment property with the freedom of a renter. If buying property near your workplace is too expensive, you could even rent property nearby. Then, buying an investment property in the outer suburbs or in a more affordable city. In this way, you can remain close to your workplace without blowing your budget.

By rentvesting, you can enter the investment property market sooner while supplementing your income and developing a valuable, long-term asset.

It’s important to note that rentvesting comes with some restrictions. You’ll have to be prepared to keep the property for at least five years to maximise its potential and you may miss out on some first home buyers offers if the first home you buy is an investment property. However, speaking with a broker can help you determine solutions to avoid these problems or alternative ways to make some extra cash.

How a mortgage broker for doctors can help

Although investment for doctors is an exciting way of supplementing your income and developing your portfolio, it can also be complex and overwhelming, particularly if you have never bought an investment property before. With the property market becoming increasingly competitive and distrust in the financial sector at an all-time high, you may feel discouraged from pursuing an investment.

That’s where we come in.

As an experienced ethical mortgage broker, we aim to do business efficiently and differently. We can research and compare loans from over 30 lenders and use our existing relationships with banks to find and negotiate the best deal on your loan. By working with a mortgage broker for doctors like us, you’ll have access to free personalised information and advice to ensure you don’t miss out on any exclusive benefits for your profession.

By working with us, you get a good deal for yourself and the planet. When securing a home loan with us, we invest up to 50% of our profits in charity work addressing housing security and other social issues in Australia and overseas. We make this donation on your behalf, allowing you to make a tax-deductible difference to a vulnerable family.

If you’re interested in investment for doctors, you can get in touch with one of our brokers for a complimentary chat to determine your options. We’re available via phone or through our website, anytime, anywhere. And we’re always ready to help.

Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstance and requirements.