Yes I was wondering if the tax deduction would apply in my case. Looking at my spreadsheets, with 5% growth, or even less the LMI should be covered by the increase in value within a year which as you guys have said above is well worth it. Just a thought – is the LMI calculation based on the new property purchase value, or the entire portfolio of properties? The Investment property will remain at 80% LVR so I am assuming this will not be counted – am I correct. And also does anyone have a rough guide of the rate charged? I am thinking of budgeting around 2-2.5% – am I on the money?

Cheers and thanks for your thoughts.