Doctors and their Income

[Rolf Latham]

The sale of the typical Mosman PPOR alone (3-4mil) would catapult someone into the upper tiers of net wealth..

For the sake of statistical validity

the current median House price in Mosman is 2 200k.

the current median for a strata property is is 651 000

The median mortgage repayment is 3000 a mth

ta'rolf

 

[Melbournian]

China... do you read and comprehend what those who are working in the industry are saying?

And can I ask why you are not studying medicine?

reading his post just briefly reminds me of russell crowe's movie "a beautiful mind". either that or it's just sour grapes. who knows?

 

[Shaneelastic]

I don't agree with this comment at all. Until recently I worked at a top tier law firm and a lunchtime conversation of property ownership came up when one junior lawyer was lamenting that he and his partner couldn't afford to purchase a property. At the time I was earning half what he was earning, and around 1/4 that of some of the others in the room, yet my net wealth and gross ownership value was many times that of anyone else there. Each of them earn over 200K yet they have lifestyles that come with the job - having to rent close to work as they are always at the office, buying expensive work clothes, lots of eating out at fancy restaurants, expensive holidays away to locations where blackberrys don't work. Their attitude? I work damn hard for my money, why not enjoy my life rather than create a lifestyle for the future.

A few years back I had a conversation with a partner of the firm I was leaving. He said I was "lucky" I could leave my job rather than being chained to it. He earned over 1mil per year but had to live in the Mosman mansion, have the kids in private school, stud fees for the daughter's pony etc etc etc. He said he can't afford to buy an investment property.

So what's to say that those 1mil doctors will be wealthy once they retire?

All grads, intermediate staff and senior staff get a chat with a financial planner at my work. Grads it's compulsory at the beginning and 12 months. Its not a typical financial planner either product pushing. It focuses on budgeting, how to save, purchasing a property, superannuation estimates and living within means. I also know the fp does income estimates and cash flow planningnwhen purchasing an investment property.
Property ownership would be 90% and it's great to see grads purchasing properties and travelling at the same time. Whilst all are paid above average wages, all seem to have very level heads bought by the culture of these chats. The employer also has a lower than normal staff turnover.

 

[china]

For the sake of statistical validity

the current median House price in Mosman is 2 200k.

the current median for a strata property is is 651 000

The median mortgage repayment is 3000 a mth

ta'rolf

So easily affordable by anyone who earns even only 200k a year, let alone a mil?

 

[wylie]

However, it cannot hurt to be in the top 1% of income earners. I think the Mosman mansion would offer a great lifestyle and have excellent resale value over time, once paid off after a year or two. The sale of the typical Mosman PPOR alone (3-4mil) would catapult someone into the upper tiers of net wealth. It is also CGT exempt.

Furthermore, it is great to be able to send children to private school and offer them pony opportunities. That in itself is a great investment, that people of less income cannot offer their children.

It would be very rare to purchase a 4m PPOR in the traditional method of 20% deposit. It is unlikely that you would get a mortgage for the balance. You would either have a small mortgage or pay in cash.

Hang on... both statements above are from YOU. You are the one who said "once paid off after a year or two" and then you decide to tell me that it would be very rare blah, blah, blah. You are contradicting yourself.

If the ophthalmologist didn't have 20% deposit, surely the bank manager would see he is earning $30K a DAY (even if it is only for three days a week) and give him the loan for the full value.

 

[Mazda]

All grads, intermediate staff and senior staff get a chat with a financial planner at my work. Grads it's compulsory at the beginning and 12 months. Its not a typical financial planner either product pushing. It focuses on budgeting, how to save, purchasing a property, superannuation estimates and living within means. I also know the fp does income estimates and cash flow planningnwhen purchasing an investment property.

I wish my workplace had a Financial Planner chat session too That would have been incredibly helpful to give someone with their first steady income something to think about while planning for the future.

 

[china]

Hang on... both statements above are from YOU. You are the one who said "once paid off after a year or two" and then you decide to tell me that it would be very rare blah, blah, blah. You are contradicting yourself.

If the ophthalmologist didn't have 20% deposit, surely the bank manager would see he is earning $30K a DAY (even if it is only for three days a week) and give him the loan for the full value.

What I am saying is that if one was in a position to purchase a 4m PPOR and not just referring to doctors, you are unlikely to require a large mortgage. Therefore, if you chose, you would probably be in a position to pay off the mortgage rapidly. It would be unusual to ask the bank to lend you 80%.

 

[geoffw]

What I am saying is that if one was in a position to purchase a 4m PPOR and not just referring to doctors, you are unlikely to require a large mortgage. Therefore, if you chose, you would probably be in a position to pay off the mortgage rapidly. It would be unusual to ask the bank to lend you 80%.

Sigh. Again broad sweeping generalisations with no basis in fact.

Let's see. Income $1m. Mortgage payments 1/3 of income. 25% deposit pn $4m property with mortgage. You could make mortgage payments with not a lot left over (Average 8% interest with 20 year p&i). It's doable.

Or save that money to buy the house. Don't live anywhere in the meantime, so all of that mortgage money could be saved. It would still take 9 years to pay for the house. Assuming the value hasn't gone up in that time.

So it possible to afford a $4m house with a mortgage but very difficult to do the same without.

 

[xactly]

White duck
24 hr on call shifts yes...
>24 hour shifts, No. Not for juniors. Not any more.

The days of working 72 hours straight, >7 nights in a Row are illegal now as they should be. This was crippling and dangerous. It did inflate your pay packet but you were too exhausted to spend it.
This may be where Chinas myth of fabulous wealth as a junior doctor is from.

Fiscal squeeze and safe practice working hours have changed the face of training medicine.
Please note I exclude current private and consultant work. This is much less regimented. But this group is not Chinas target future medics. It is unlikely to exist in its current state in the future as the rush to medical school starts inspired by this thread.

 

[nev]

Often wondered what a Doctor would pay in insurance
Public Indemnity ??

Shurely this would take a Huge chunk out of the income??

 

[china]

Often wondered what a Doctor would pay in insurance
Public Indemnity ??

Shurely this would take a Huge chunk out of the income??

Depends on which field of medicine you practise in and therefore the risk of litigation.

For obstetricians, can be up to 200k. Neurosurgeons about 200k.
General surgeons - about 25k
GPs - about 5k.

Some insurance companies will index your indemnity premium to gross billings.

 

[china]

White duck
24 hr on call shifts yes...
>24 hour shifts, No. Not for juniors. Not any more.

The days of working 72 hours straight, >7 nights in a Row are illegal now as they should be. This was crippling and dangerous. It did inflate your pay packet but you were too exhausted to spend it.
This may be where Chinas myth of fabulous wealth as a junior doctor is from.

Fiscal squeeze and safe practice working hours have changed the face of training medicine.
Please note I exclude current private and consultant work. This is much less regimented. But this group is not Chinas target future medics. It is unlikely to exist in its current state in the future as the rush to medical school starts inspired by this thread.

You will find that surgical registrars especially those involved in neurosurgery, orthopaedics are still doing 72 hours straight, usually in peripheral metropolitan or rural hospitals. Doing a 1 in 2 roster, you start on friday 0700 and finish monday 1800 every second weekend. Easily 200k or more a year.

 

[skater]

.

I'm closing this thread tomorrow.

Closing arguments please.

Because after this the topic will no longer be allowed.

Thank God for that. Hopefully comments injected into other threads about doctors income can be removed too. It's tiring, repetitive and totally INCORRECT

You're trolling.

I think most of us here are aware of this. Please don't let it continue.

 

[geoffw]

Thank God for that. Hopefully comments injected into other threads about doctors income can be removed too. It's tiring, repetitive and totally INCORRECT




I think most of us here are aware of this. Please don't let it continue.

Thanks Skater.

On that note, this thread, and this topic, is closed.