Browse Forums Home Finance Re: Pay LMI or save up some more? 4Jun 17, 2016 7:12 pm They always say you need to way the cost of LMI against the cost of waiting to buy. Which of course it a guess at best. For me I never thought I'd be able to save 20%, so I just went ahead and bought with 5%. That was 2014, I still haven't started building.. and that delay on titles enabled me to save the 20% I needed, so I think I paid 20% on land and 10% of build in the end, so I still paid some LMI, but it was like 2k versus 11k...but in the same time the blocks of land have gone up 10-15k and build costs 5k-10k. Re: Pay LMI or save up some more? 6Jun 17, 2016 9:10 pm Best to check with a broker (try posting on the finance thread, some hang out there), because I'm not 100% sure.. might be 10% of land and 10% of build..= 20% of total loan? Or 20% of each.. Re: Pay LMI or save up some more? 7Jun 18, 2016 8:10 pm If you are financing both land + build in one go, I think the 20% deposit upfront. If you do this, best to save more. Land + build valuation often valued lower than cost and you might need to cover the difference Re: Pay LMI or save up some more? 8Jun 20, 2016 10:33 am budoy So if I pay 20% of land cost, I wouldn't pay LMI, right? When I do decide to build, do I add 20% of the build cost? Yes there would be no LMI on the land loan. Then some or none on your construction loan depending on if you save 20% of the build cost by the time you want to build. Of course if you buy land that isn't titled yet you won't pay anymore than 10% now and won't need the loan until your land is ready. Best to talk to a broker or bank I've just had a look at the website. The company are just building broker's. There are plenty of similar companies that basically draw your plans (they own them so you… 8 11871 Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 22073 Hi VK, Think it's worth investing time in an Owner Builder course to equip you with basic knowledge on Australian Building Industry and its regulations. Also, I suggest… 11 25004 |