Is Property the Best Investment For Doctors: What the Data Says

For many Australian doctors, property has long been the default wealth creation strategy.

It is tangible, familiar, easy to understand and historically supported by strong tax incentives. With high incomes and strong borrowing capacity, many medical professionals have naturally gravitated toward residential investment property.

However, when you look at long-term asset class data, property is not always the standout performer people assume it to be.

In fact, diversified share portfolios have often delivered stronger long-term returns, with greater liquidity, broader diversification and less reliance on debt.

What the Long-Term Data Shows

Vanguard’s 2025 Index Chart shows that over the 30 years to 30 June 2025, a $10,000 investment grew to:

Asset class	Value after 30 years	Annual return
U.S. shares	$214,332	10.8% p.a.
Australian shares	$143,786	9.3% p.a.
International shares	$109,132	8.3% p.a.
Australian listed property	$99,911	8.0% p.a.
Australian bonds	$49,451	5.5% p.a.
Cash	$33,677	4.1% p.a.
CPI	$21,911	2.6% p.a.

The key point is simple. Over this 30-year period, Australian listed property was not the best performer. U.S. shares, Australian shares and international shares all finished ahead. (fund-docs.vanguard.com)

Winner by Decade: Leadership Changes Over Time

Looking at asset class returns by decade shows that no single investment wins all the time.

Period	Standout asset class
1990s	International shares
2000s	Australian property and resources
2010s	Global and Australian shares
2020s so far	Global shares and technology-led markets

The lesson is not that doctors should avoid property entirely. The lesson is that markets move in cycles and leadership changes over time.

Concentrating too heavily in one asset class can leave investors exposed when conditions shift.

Why Property Has Been So Popular With Doctors

Property has been attractive for doctors because it lines up neatly with their financial profile.

Many doctors have:

• High taxable incomes

• Strong borrowing capacity

• A long investment timeframe

• Comfort using debt

• A preference for tangible assets

  
  

Historically, negative gearing and capital gains tax concessions also made property particularly appealing.

However, tax settings matter. If the tax benefits change, the investment case needs to be reviewed.

Why the Negative Gearing Changes Matter

The proposed 2026 Federal Budget changes would restrict negative gearing on residential property to newly built homes from 1 July 2027. Established residential properties already owned at the time of the Budget announcement are proposed to be grandfathered, but future purchases may not receive the same treatment.

The Budget also proposes replacing the 50% CGT discount with cost base indexation and a 30% minimum tax on net capital gains from 1 July 2027.

For doctors who have historically relied on property as their primary wealth-building strategy, this is significant.

It does not mean property becomes a poor investment. It does mean the after-tax case for residential property may be less compelling than it once was.

Why Share Portfolios Deserve More Attention

A well-structured share portfolio can offer several advantages for doctors:

• Exposure to thousands of companies across Australia and overseas

• Greater liquidity than property

• Lower transaction costs

• No tenant, maintenance or vacancy risk

• Easier diversification across sectors and regions

• Ability to invest progressively over time

  
  

Shares also allow doctors to build wealth without needing to take on large, concentrated property debt.

This is particularly important for medical professionals who already carry significant financial exposure through mortgages, practice ownership, business loans or family commitments.

The Problem With Comparing Property and Shares Too Simply

Property returns are often discussed in terms of capital growth, but that does not always tell the full story.

A fair comparison should consider:

• Loan interest

• Stamp duty

• Land tax

• Maintenance

• Agent fees

• Insurance

• Vacancy periods

• Tax treatment

• Lack of liquidity

  
  

Shares also have costs and volatility, but they are generally easier to diversify and easier to sell in part if circumstances change.

For doctors, flexibility can be valuable.

Why This Matters for High-Income Professionals

Doctors often have strong earning capacity, but limited time.

This can lead to investment decisions being made around what feels familiar rather than what is most efficient. Property is easy to understand, but that does not automatically make it the best long-term option.

The data shows that diversified share markets have historically been highly competitive, and often superior, over long periods.

With proposed tax changes reducing some of the traditional advantages of property, the case for broader investment diversification becomes stronger.

Where Financial Advice Adds Value

The right strategy is not about choosing property or shares in isolation.

It is about understanding:

• Your income

• Your tax position

• Your debt levels

• Your time horizon

• Your risk tolerance

• Your need for liquidity

• Your retirement goals

  
  

For doctors, financial advice can help turn high income into structured, diversified wealth. It can also help avoid overconcentration in one asset class simply because it has worked well in the past.

Key Takeaway

Property has played an important role in wealth creation for many Australian doctors, but the data does not support the idea that it is always the best long-term investment.

Over the past 30 years, diversified share portfolios have outperformed listed property, and even small differences in annual returns can create dramatically different outcomes over time through compounding.

With proposed changes to negative gearing and capital gains tax, doctors should be thinking more broadly about how they build wealth. Property may still have a place, but it should not be the whole plan.

BFD Financial Planning is a specialist firm dedicated exclusively to Medical Professionals. If you would like to discuss your financial goals for the year ahead and beyond, you can book a meeting at a time that suits you (including outside standard hours) via our online calendar.

Book a meeting. https://calendly.com/thomasrutter-bfdfp

Contact us today. info@bfdfp.com

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