Guys,
Looking for some input from you for my next property purchase.
Option 1:
Borrow 80%, no LMI applicable but only buffer of around $2-3k
Option 2:
Borrow 85%, LMI charge of around $5k leaves around $17k cash buffer
Option 3:
Borrow 90%, LMI charge of around $10k, leaves cash buffer of $17k as per option 2, but also leaves around $28k in my investment loan which I can purchase goods to furnish the place, rent out place fully furnished and have the furniture tax deductible and can claim depreciation over time
Thoughts?
- I understand that the LMI component of the loan is deductible over 5 years, and at which point I will pay off that "non-deductible" portion
- I am planning to furnish the place over time, unsure if I should do it all right away or not. Would only do so if the tax benefits are worth it
Opinions?
Looking for some input from you for my next property purchase.
Option 1:
Borrow 80%, no LMI applicable but only buffer of around $2-3k
Option 2:
Borrow 85%, LMI charge of around $5k leaves around $17k cash buffer
Option 3:
Borrow 90%, LMI charge of around $10k, leaves cash buffer of $17k as per option 2, but also leaves around $28k in my investment loan which I can purchase goods to furnish the place, rent out place fully furnished and have the furniture tax deductible and can claim depreciation over time
Thoughts?
- I understand that the LMI component of the loan is deductible over 5 years, and at which point I will pay off that "non-deductible" portion
- I am planning to furnish the place over time, unsure if I should do it all right away or not. Would only do so if the tax benefits are worth it
Opinions?