Is it worth paying mortgage insurance to get into the Market?

In my opinion it’s absolutely worth paying LMI in order to get into a property deal. There’s no denying that since the global financial crisis, the cost of LMI has increased exponentially. Where a property deal may have attracted LMI of $2000 or $3000 several years ago, that same deal could extract a LMI premium in excess of $10,000 today. Some investors baulk at this type of outlay, but I think it’s important to adjust your mindset to view these costs as being part of the cost of doing business.

This is particularly true when you consider the premium is tax deductible over five years, and in most cases, it can be capitalised onto the cost of your loan. The reality is, when you look at the alternatives, spending $10,000 on LMI is eventually going to pale into…

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

Become a successful Property Investor

Start Here With Your Free Investment Gift Pack Valued at $297
how to project manage your renovation

Get one step closer, Fill in the form below

  • This field is for validation purposes and should be left unchanged.

More from Real Wealth Australia

What happens if your tenant doesn’t pay the rent during COVID_
Articles

What happens if your tenant doesn’t pay the rent during COVID?

I recently received a question from one of my subscribers… I have a question that I have noticed no one is bringing up since Covid …

Articles

My top 2 areas to invest in during the current market!

If you are in the market to buy property right now, then I have some news for you. In today’s video (blog), I’m going to …

Blog - The Next Boom Cycle Is Coming... Prepare Yourself
Articles

Post COVID-19 Property Boom Cycle is coming… prepare yourself!

The Corona virus pandemic is in the process of trashing property prices by possibly up to 30% according to some and when it’s over be …