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.
- 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.