Most serious investors appear to borrow more than 80% for subsequent IPs, but this is normally done by using equity from elsewhere, not paying LMI, I believe.
I'm looking at about the $350k purchase mark, have $35k LOC to access and approx $70k cash. My intent was to use the LOC first and use the cash for the rest of the deposit and other costs. Does this sound like the best option?
I just wanted to throw open the question, to make sure that I've got my thinking right. 90% LVR at this price would cost about $6k in LMI. Is there any reason you would keep your powder dry and capitalise the LMI, or would this be as stupid as it sounds to me?
Besides the extra $6k in LMI, I assume getting a loan would also be more difficult then having the full 20% deposit available?
BR
I'm looking at about the $350k purchase mark, have $35k LOC to access and approx $70k cash. My intent was to use the LOC first and use the cash for the rest of the deposit and other costs. Does this sound like the best option?
I just wanted to throw open the question, to make sure that I've got my thinking right. 90% LVR at this price would cost about $6k in LMI. Is there any reason you would keep your powder dry and capitalise the LMI, or would this be as stupid as it sounds to me?
Besides the extra $6k in LMI, I assume getting a loan would also be more difficult then having the full 20% deposit available?
BR