Tips

SMSF property loans

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.

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.

More Posts

Pre-Approved loans

A loan pre-approval is written confirmation that a lender has reviewed you and your current financial position and is prepared to lend you money up to the pre-approved loan amount.

First Home Buyers – Family Assistance

The family could provide a gift of money to the purchaser. If it isn’t to be treated as a repayable loan by the bank, then the family member giving the gift will need to provide a statutory declaration signed by a Justice of the Peace.