![Dizzy ::dizzy::](./images/smilies/Dizzy.png)
I bought land in May this year and I put 20% deposit down on the loan.
I have to have construction done in 3 years. (Gives me time to save money for the deposit on construction).
Now for example.
Say, Land was 250 000 .... and i had 20% ... so loan amount was 200 000
I start paying principal + interest monthly .. I pay the minimum monthly. All spare money I put into my offset account.
now lets say next that next year August I want to meet with builders and the house/construction will be 250 000
Trying to avoid LMI... do I need 50 000 deposit (20% of 250 000).???
Additional things to consider
- by Aug next year.. the Principal on the land would have been reduced (as i have paid land during this time).
- When land was bought, there was not many houses in the area/estate ... there is now a few completed, some shops are going to open soon and a school. So the land value will increase..
How do I calculate the deposit needed to avoid LMI?
![Smile ::smile::](./images/smilies/Smile.png)