Hi, ya'll.
Thinking of getting on the debt train, and getting a PPOR. Have some money in ETFs and shares, and some in cash. Currently seeing a broker and I'm considering paying LMI, as it's likely that we'll live in it for a short while (~18 months), rent it out for a few years, then return (thus, some of the LMI is likely to be tax deductable). Plus, I like the idea of having some 'emergency' cash (~10%) for if things get tight.
With that in mind, I was trying to calculate/work out numerically when it may be beneficial? A Google search yields everyone trying to avoid it, but I can see benefits of copping it, even though we are able to pay it, if required.
Eg, 700k property, 10% deposit LMI ~=17k
Eg, 700k property, 15% deposit LMI ~= 8.5k
Those prices seem linear (that was the first search I did, but I've also seen others that are not).
So, does anyone have a yardstick as to when it's worth paying it? In the lame example above, having an extra 8k in the 'sleep at night'/offset could be fairly reassuring, vs paying LMI.
Thanks.