Useful Tips

Borrowing money to buy a property in a Self Managed Super Funds (SMSF)

Every lender has their own terms and conditions, and this is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.

Generic process:

  • Get a statement of advice from your Financial Planner.
  • Have your accountant set up the SMSF Trust for you. Ensure that the trust deed enables borrowings.
  • Apply for & receive the SMSF Trust tax file number & ABN
  • Open the SMSF bank account
  • Set up your personal risk insurance requirements with your Financial Planner
  • Roll over your existing super fund(s) into the new SMSF
  • Start investing as per the financial plan. Ensure that enough cash is available to complete settlement on the property when required.
  • EquityVision will apply for a loan pre-approval with the lender we select together.
  • Have your accountant set up the Bare Trust corporate trustee.
  • Find the property.
  • Sign the contract in the name of the Bare Trust corporate trustee.
  • Pay a holding deposit from SMSF bank account.
  • Your accountant can now finalise the Bare Trust, incorporating the proposed property address. (the Trust Deed does not have to be stamped to settle on the property)
  • EquityVision will apply for unconditional loan approval.
  • Pay the balance of the deposit from the SMSF bank account

And the rest is a standard loan process – EquityVision will take you through step by step.

Security property considerations:

  • Standard residential property in category one metropolitan area
  • Apartments with car parks must be a ‘single acquirable asset’
  • Property must be strata title
  • Consider avoiding off the plan purchases, as legislation in this area is constantly under review & the rules could change between when you sign the contract and when you settle.

This tip does not cover the entity structure required.