Should a Doctor Buy a Townhouse Now or Keep Renting? My Take

I've managed hundreds of rentals over the years, and one of the most common questions I hear from young professionals—especially doctors—is whether to buy now or keep renting and invest elsewhere. It's a good problem to have, but it can tie you in knots. Here's my take as a retired property manager who's seen plenty of people get it right, and a few get it wrong.

The Doctor Advantage: Your Borrowing Power Is Different

If you're a doctor, you have a hidden superpower when it comes to getting a home loan. Many lenders in Australia treat medical professionals as low-risk borrowers and offer special deals. The two big ones are:

• Higher loan-to-value ratio (LVR): This is simply how much you borrow compared to the property's value. Most buyers need at least a 20% deposit to avoid paying lenders mortgage insurance (LMI)—a one-off fee that protects the lender if you default. But as a doctor, many lenders will let you borrow up to 95% of the purchase price without charging you LMI. That means you can buy a townhouse with as little as a 5% deposit and keep more cash in your pocket.

• All of your income counts: When lenders calculate how much you can borrow, they usually only count your base salary and may discount overtime or bonuses. For doctors, many lenders will count 100% of your income—including overtime, penalty rates, and even salary sacrifice amounts. This can dramatically increase your borrowing capacity compared to a non-medical borrower on the same headline salary.

I remember a young registrar who came to me after buying her first townhouse with a 5% deposit and no LMI. She couldn't believe how much easier the loan process was than she'd feared. That's the advantage you're sitting on.

Buying Now vs Waiting: The Market Timing Question

Nobody has a crystal ball, but here's what I've learned from watching property cycles: if you can comfortably manage the repayments, buying now is often a better deal than waiting six months. Property prices in most Australian cities have a habit of rising over the long term, and the cost of waiting can be more than you think.

What if you buy now and then get a job offer interstate? That's the fear that stops many young doctors. But here's the thing: you don't have to sell. You can turn that townhouse into an investment property and rent it out. You'll need to let your lender know—your owner-occupied loan may need to switch to an investment loan, and the interest rate might be a touch higher. You'll also need to manage the property (or hire a property manager like I used to be) and handle rental income and expenses for tax purposes.

The alternative—renting and investing in ETFs—is perfectly respectable. But ETFs don't give you the same leverage. When you buy a $600,000 townhouse with a 5% deposit, you're controlling a $600,000 asset with $30,000 of your own money. If property goes up 5% in a year, that's a $30,000 gain on your $30,000 deposit—a 100% return before costs. ETFs can't match that leverage unless you borrow to invest, which comes with its own risks.

What I'd Do If I Were You

If I were in your shoes, I'd ask myself three questions:

1. Can I afford the repayments comfortably? Factor in a rate rise or two. If the answer is yes, buying now makes sense.
2. How likely am I to move in the next 12 months? If it's high, maybe wait—but if it's just a maybe, buying and later renting out is a solid plan.
3. Do I have a buffer for unexpected costs? Townhouses come with body corporate fees, maintenance, and the occasional special levy. Don't stretch so thin that one broken hot water system throws you into a spin.

I'm not a financial advisor, so treat this as lived experience, not personal advice. But in my decades managing property, I've never met a doctor who regretted buying a well-located townhouse they could afford—even if they later moved and rented it out. The ones who regretted it were those who waited too long, or bought something they couldn't hold onto when life changed.

My suggestion: talk to a mortgage broker who specialises in medical professionals. They'll show you exactly what you can borrow and what the repayments look like. Then run the numbers against your current rent and ETF returns. You might be surprised how close the decision is—but the doctor borrowing advantage often tips it toward buying.