LMI -vs- 20% Deposit

Discussion in 'The Buying & Selling Process' started by Tim & Chrissy, 1st Feb, 2016.

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  1. Heinz57

    Heinz57 Well-Known Member

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    You look young, maybe option 1.
     
  2. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    The issue we have is our serviceability is maxed, so even if we free up the extra cash we can't actually do anything with it except park it in the offset (or buy a sub $50k property!). Serviceability is unlikely to change within the next 2-3 years.
     
  3. Corey Batt

    Corey Batt Well-Known Member

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    Considering you believe you're unlikely to be able to purchase for quite some time, keeping to a 80% LVR might be practical.

    LMI is a great tool for the growth to consolidation phase of investing as it enables you to make more purchases sooner. If it's not enabling you to do this, it's a surplus cost which should be mitigated where possible.
     
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  4. Rugrat

    Rugrat Well-Known Member

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    Option 3.
     
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  5. LifesGood

    LifesGood Well-Known Member

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    @Terry_w don't you usually advise against using option 3?
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Option 3 is borrowing against other property = good if there is enough equity. Best to borrow the lot always if it is possible.
     
  7. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    There are reasons why I don't want to touch that property - related to the PM I sent your earlier. Starting to add up costs and thinking I may have no other choice than Option 3. Do you know if The full years council and water rates are payable in advance on QLD purchase as they are in NSW?