virtually all lenders lend to trusts.

Yes. prepaying means paying in advance. The loan will be fixed for the next 12 months so no payments will be due until the expiry of the 12 months.

Do you have a main residence? If so then I would pay this off. If not then I would buy one. You can then leverage off that.

Get some legal advice on structuring things for tax effeciency and also asset protection.

If the SMSF purchased the unit outright it would be using up its cash so may not be able to afford a second unit withtout further extra contributions.

Are you looking to buy in the SMSF or in your own names?

If a SMSF it may not be a good idea to buy without finance as the property cannot be later mortgaged or used as security for further investing.

I presume the apartment is small – is that why you cannot finance?

woohah76 wrote:

Asking all the experienced/hardened investors out there for an opinion.

I have an opportunity to gain an instant increase in equity of close to 50% on a deal due to it being well below market value. However the immediate/short term on-selling prospects aren’t too great due to the particular market being tight, it has a poor rating on the boomtown app etc

So the question is, Is equity worth it if the immediate on-selling prospects aren’t too great? Or do you need both to validate the risk?

Thanks for any feedback and in sight

Sounds like you are not really getting instant equity if you cannot resell it qiickly. think carefully.

Assuming you will need a loan on the property why not use the lenders valuation

Not unless it was a 3 way marriage.

• This reply was modified 11 years ago by  Terryw.

ssky7788 wrote:

Hi,
Thank you to all who may respond!
Does “SMSF” (Borrowing to create a property profile) outshine the “Discretionary Trust”?
Which strategy is better to create a property profile (may be negative gearing and at age around Mid-High 50s ) after comparing with all the setting cost, on going fees and the tax benefits….etc??
What if the risk that government may change the policy in future?
What do you recon?
Any information would be much appreciated. Thank you.

I reckon you need to learn a bit more before you start asking these sorts of questions/

You must be rich?

$55k on a car is crazy – what will it be worth in 5 years?

If you purchased $55k worth of vangard index fund what would it be worth in 5 years, and how much income would you have received?