Finance arrangements for Self-Managed Super Funds
Whether you are considering the purchase of a residential or commercial property, talk to the Paul, who has a wealth of experience in SMSF lending.
Not long after SMSF lending was legislated in the late 2000’s, during Paul’s banking career, Paul was the first banker in Victoria to successfully complete a SMSF loan for his clients.
He will find the most suitable SMSF loan for your fund and structure the debt in line with your needs and your accountant’s recommendations.
The 10 simple steps to financing property via your SMSF.
- Talk to your accountant about whether an SMSF investment is right for you. There are heavy compliance requirements and tax impacts to consider. Get it wrong and the Tax Office could eat you alive with penalties.
- Talk to your financial adviser about rolling out of your current super. You definitely need to consider the impact on any life or income protection insurance you currently have in your superannuation. The last thing you want to do is be uninsured or underinsured
- Talk to Paul about your capacity and options.
- Decide whether residential or commercial options are right for you. A commercial property will deliver higher yields, but also has higher risk.
- Do your research – where can you get the right combination of return on your investment to cover the property holding costs and get the capital gain that ensures that in the long return your property gives you a comfortable retirement.
- Back to your accountant to get your trust deeds up and running and your superannuation rollover underway (bearing in mind the advice received at Step 2).
- Find the right agent to buy through and manage your property. Somebody who knows what is in demand in the location you choose and has the runs on the board to get a quality tenant into your property.
- Appoint a Legal representative or conveyancer that understands the steps and complexities in SMSF property transfers.
- Taking steps 1-8 into account, find the right property for you, make your offer and give it time as SMSF lending doesn’t happen in a hurry. Your agent will send the notice of sale to your legal representative.
- Come back to Paul to formalise your loan approval and loan offer.