Rentvesting for doctors

Medical careers have a long, mobile middle: internship, residency, registrar years, fellowship, sometimes overseas. Doctors are also often high earners by the time they’re thinking about property. Those two facts are why rentvesting comes up among doctors. This page explains how it generally works for them, as at 6 November 2026.

General information only. It doesn’t take your circumstances into account.

Why rentvesting comes up for doctors

Rotations and training years

Junior doctors and registrars may move hospital every few months and city every few years. Buying a home to live in during those years means risking a sale at the wrong time. Renting near each rotation and owning an investment elsewhere is one way to stay in the market without being tied down.

Living near the hospital

Major teaching hospitals are often in expensive inner suburbs. On-call and long shifts make a short commute valuable.

Higher income, higher marginal rate

Senior doctors and specialists are often in the top bracket. For 2026-27, taxable income above $190,000 is taxed at 45%, plus 2% Medicare (ATO). A deductible loss reduces tax by about 47 cents per dollar at that rate. That’s more than at lower rates, but it’s still not the full cost.

Limited time

Busy rosters make it hard to manage a property. Some doctors use property managers and prefer newer properties with lower maintenance.

What doctors commonly consider

• Where they’ll settle. Many plan to buy a home once training finishes.
• Ownership structure. Personal name, joint, trust or company. This has tax, asset protection and lending consequences and is a question for an accountant and lawyer.
• Private practice income. Lenders assess it differently from salaried income.
• New or established. Since 2026, this affects the tax treatment, which matters more at higher marginal rates.
• CGT. From 1 July 2027 the CGT rules change, with a choice of the 50% discount for new dwellings.

The example property at a $250,000 salary

The calculator above uses an example salary of $250,000, chosen for illustration. Doctors’ incomes vary enormously by stage and specialty, and a registrar’s income can be well below this.

At that salary the 2026-27 marginal rate is 45% plus Medicare. The calculator shows:

• Best case: the example property tenanted every week.
• Worst case: vacant every week, with any rental guarantee from the property management company paying the guaranteed rent for its term, typically three years.

Results are estimates after rent and estimated tax effects, excluding changes in value. Try a lower salary to see how the result changes at an earlier career stage.

The 2026 tax changes in brief

• Established dwellings bought after 7:30pm AEST 12 May 2026: net losses quarantined from 1 July 2027.
• New residential dwellings remain eligible for negative gearing, subject to legislation before Parliament.
• CGT from 1 July 2027: indexation plus a 30% minimum tax replaces the 50% discount; owners of new dwellings can choose the 50% discount.
• Held before Budget night: grandfathered for negative gearing.

Sources: Pitcher Partners, Baker McKenzie. See negative gearing in 2026.

Work deductions

Doctors’ work-related deductions follow the ATO’s rules for medical professionals, set out in the occupation and industry guides. They’re separate from investment property.

The risks

• A high tax rate doesn’t make a poor property good. Price and location still decide most of the outcome.
• Values can fall. National values were 6.7% below the March 2026 peak in October 2026 (Cotality).
• Vacancy. National vacancy at a five-year high of 2.4%.
• Career changes. Training years can include lower income, exams, part-time work or time overseas.
• First home buyer benefits. Usually not available on the investment; the 5% Deposit Scheme can be affected for up to 10 years. Many doctors are above price caps anyway, but it’s worth checking.
• Rental guarantees end. Where offered, provided by the property management company for a fixed term, dependent on that company paying.

Questions to take to a tax agent, accountant and lender

Registered tax agent or accountant

• What’s my marginal rate this year and likely next few years?
• How would an investment loss be treated, new versus established, under the 2026 changes?
• Personal, joint, trust or company ownership: what are the consequences for me?
• How do the CGT options compare over my likely holding period?

Lender or broker

• How do you assess registrar, contractor and private practice income?
• Would I be assessed for 100% of the purchase price plus LMI? (Through licensed lending partners including Empower Money, ACL 561207, subject to eligibility and credit assessment.)

Join a webinar

To see how the numbers change at higher marginal rates, join a free WPF GO webinar with Peter Khoury. General information only, not personal advice.