- luke31Member@luke31Join Date: 2008Post Count: 2
Im looking to roll over the funds from my superannuation fund into a SMSF to purchase an investment property. Does anybody have any access to lenders who will lend for a SMSF leveraged property investment?.
If so, what are the requirements/conditions, ie lvr, postcode restrictions, max.lend amounts, interest rates etc.
LukeCat159Participant@cat159Join Date: 2004Post Count: 30
Try any of the banks – Macquarie has a product called property leverluke31Member@luke31Join Date: 2008Post Count: 2
Thanks for that, according to their website Macquarie only does a 55% lvr, need higher than thatTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
I haven't really looked into this, but there was one company that was offering up to 85% LVRs. Most are generally 70 to 80%.
Expect the fees to be high and interest rates are about 1 to 2% higher than normal loans.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
It is not quiet as easy as all that.
Firstly the property cannot be purchased in the SMSF name but in the name of a Bear Trust which holds the property until the final payment is made when it is then transferred to the assets of the SMSF.
The costs of establishing such a Trust with a Corporate Trustee range from between $6-$20K depending on the lawyer involved.
The largest lender was Calliva however Bank of Scotland who provided their funding pulled this 10 days ago and they have suspended all further lending. Seiza who were also a big player in this market have ceased lending.
With regards to the remaining players you are left with a couple only and as Terry mentioned you are limited to around 70% LVR realistically at 1-2% above standard housing rate.
The main areas these lenders will consider is capital cities and major regional towns but must be zoned residential / commercial. Obviously no vacant land or construction.
I have completed about 8 of these deals over the last 10 months and they are tougher than pulling teeth with the lenders wanting 2nd valuations etc after they have issued the letter of offer and paperwork like you have never seen before.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
I haven't done any of these sorts of deals yet (and don't really want to), but I remember seeing an email from Mortgage Mart – they did the 85% LVR one a while back.Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598
I did one via Mortgage Mart – agree with Richard – absolute nightmare!!! 80% was the max.
ATO may have issues with personal g/tees and there may be GCT issues when ppty finally transfers into fund so watch out.
NAB & Westpac are probably the main lenders left.
However, I can't see us getting involved in another one of these for a while.
StuRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
I am with you.
It would have to be a very special client to want to repeat such headaches.