Buying property is a big milestone, but deciding whether your first step should be your dream home or an investment property can be tricky, especially for medical professionals who often juggle high workloads, student debt and rapidly changing life stages.
The short answer? It depends on your goals. But let’s break it down.
Buying your first home.
For every Australian, the appeal of owning your own home is clear. You want a place that’s yours – no rent inspections, no noisy upstairs neighbours, and the freedom to paint the walls any colour you like.
Why it makes sense to start with buying your first home:
- You're building equity instead of paying rent
- You may be eligible for first home buyer grants or stamp duty concessions (depending on your state)
- You get stability – no moving every year when the lease runs out
- You can focus on building a life in one location, which is great if your job is settled
When it may not be ideal:
- You’re still moving around for training or work
- You want to live in a high-cost area, but can’t afford to buy there yet
- You’re not ready to commit to one place long-term
Starting with an investment property.
Buying an investment property first can be a smart move, especially if you’re not quite ready to settle down. You can get a foot in the property market and potentially grow your wealth while still renting where you want to live.
Why it works well for medical professionals:
- You can buy in a more affordable location with good growth potential
- Rental income can help offset your loan repayments
- You may be able to claim tax deductions on interest and expenses
- If structured well, it can complement your long-term wealth plan
When it might not be the right time:
- You’re not prepared for landlord responsibilities or vacancy risks
- You’re relying too much on future capital growth to make it worthwhile
So, what should you do?
There’s no one-size-fits-all answer, but here are some questions to guide you:
- Do you plan to stay in one place for the next 5-10 years?
- Can you afford the property you want in your preferred location?
- Are you more focused on lifestyle or building wealth right now?
- Have you considered how each option fits into your long-term goals?
Your exclusive benefits.
As a medical professional, you have access to exclusive lending benefits that can make your property journey a little easier. Many lenders offer specialised credit policies that recognise the stability and future earning potential of your profession, allowing you to borrow up to 95% Loan to Value Ratio (LVR) for residential purchases. You may also be able to avoid paying Lenders Mortgage Insurance (LMI) altogether, even with a smaller deposit. These tailored benefits can fast-track your entry into the market and save you thousands in upfront costs.
If you want to take advantage of these benefits and receive expert advice on your next financial move, contact our team today on 1800 988 522 or email finance@cutcher.com.au.
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Dean is the head of the Residential & Commercial Finance division at Cutcher & Neale. With over a decade of experience previously working within the private banking industry, he enables the firm to provide independent, dedicated and personal finance solutions to clients.
Dean specialises in finance solutions such as home loans, investment loans, refinance, commercial loans and bespoke lending for certain professions.
