There’s no way around it: property investment takes time and money. Both of these are scarce resources if you’re a young medical professional looking to enter the market.
At the end of a decade of education and training, most medical professionals and specialists are in their early 30s. By the time they enter full time paying roles, the purchase of a first home or investment has been significantly delayed. Limited savings, a debt for higher education and the need to have earning statements for two years makes it difficult to raise finance through the traditional banking system. It’s understandable that if you’re a young medical professional, even the thought of owning your own home can seem like a million miles away.
Financiers who work closely with the medical professions understand that while young doctors may have restricted incomes when they first enter the workplace, they have the potential to substantially increase their income once full time work commences. Additionally, their needs or demands for property can quickly change.
A Long-Term View
Faced with this situation, medical professionals and specialists may be better placed to take a long-term view on property investment. Starting small and building on their portfolio as their income increases as opposed to viewing a property purchase as a single transaction makes for a more sound and realistic strategy.
For example, an inner-city apartment may not be the home you imagine raising your family in but it could become an investment when you upgrade and buy something bigger – helping you build a portfolio of properties as part of a broader investment plan.
If this is the case, structuring your first mortgage correctly is very important. An offset home loan with an attached offset transactional account, could allow you to save a deposit for your second property. This would ensure that your original credit line remains fully in place to take advantage of other investment opportunities.
Flexibility to Maximise Potential
Regardless of the stage you are at in building your property portfolio, look for a professionally tailored financial structure with a long-term view. The aim is to have the flexibility you need to maximise your earnings as your medical career and assets mature; and help you build your practice
(if you have one) at the same time.
Many mainstream banks have lending officers who are generalists. As a medical professional with limited time, it is a good idea to consider developing a long-term relationship with a specialist financier, such as BOQ Specialist, who deeply understands your needs and circumstances. Working with a relationship manager at this level will allow you, regardless of age or career stage, to manage your finances in one place. Your relationship manager may also be prepared to visit you at home or in your practice, after hours to fit in with a busy work schedules.
BOQ Specialist can be contacted on (AUS) 1300 131 141 or visit boqspecialist.com.au.
Andre Karney has spent over 20 years working in banking and finance. Andre’s lengthy experience in the area of specialist lending in the healthcare sector ensures an indepth knowledge of the market and makes him well qualified to provide practice finance advice. He writes in this issue of mivision on Home Financing.
The credit provider is BOQ Specialist – a division of Bank of Queensland Limited ABN 32 009 656 740 Australian credit licence no. 244616 (“BOQ Specialist”). Terms and conditions, fees and charges and lending and eligibility criteria apply. BOQ Specialist is not offering financial, tax or legal advice. You should
obtain independent financial, tax and legal advice as appropriate.
The opinions expressed in this article do not necessarily reflect the opinion of the author or Toma Publishing and its subsidiaries.
