Tim

Your structure seems to be standard “instalment warrant” structure so all should be OK. Only warning is that although you have already been through NAB’s legal vetting process in the past it in no way means that you will get the same successful result again even using the same documentation as you have in the past.

As an example I know of…[Read more]

TimYou mention "outside SMSF" do you mean inside?If your doing the same funding structure and same lender as your past SMSF purchase why not just copy what you have already paid for using the same bare trustee company/entity but changing items such as address/loan amount etc.

In NSW obtaining probate does not require a valuation of the assets for most simple estates and is done using an "estimated or known" value. Outside of the beneficiaries interests, the gross value of the overall assets within the estate is used by the government to calculate the lodgement fees payable.The following is straight off the NSW Supreme…[Read more]

Hi Grateful

My understanding on the issue is;

1/ You can use borrowings to repair and/or maintain the property but not improve or develop it. Borrowed money can also be used to pay expenses incurred in connection with purchasing the property and obtaining the loan such as establishment costs and stamp duty.

2/ The fund can use its own funds to…[Read more]

Mav wrote:
Thanks Mike and number8, what is internal lending?

As Birchcorp says internal lending may be easier for some people and is done when the members become their own banker and lends the SMSF the required funds.SMSF Members loans are loans provided by members (or sometimes related parties) using their own funds or funds borrowed agai…[Read more]

Servicability is generally based upon a percentage (70%-80%) of the rental and SMSF contributions as well as other SMSF investment income if the fund is an existing fund and has other income generating assets. In some cases (and dependent upon the lender) they may also look at the members own personal financial position however this is to see that…[Read more]

If you are planning on using an instalment warrent borrowing structure you need to exchange contracts in the name of the security custodian not in the name of the trustee as trustee of your SMSF.  A few things about the security custodian;1/ it has to be a new company2/ it has to be in existence (registered with ASIC) prior to entering into the c…[Read more]

Qlds007 wrote:
WWFEvery deal i have done with NAB here in Brissie they have asked for PG's.

Hi Richard – same here in Sydney PG’s always required. Another negative with NAB is that no mater how many times you provide the same Bare Trust documentation they still want to amend/change. Why…..because they can.

In fact one document provider now…[Read more]

cjgs276 wrote:
Hi, can anyone recommend a SMSF lender in Melb that don't require a Pers Guarantee.Looking to buy prop via SMSF in Inverloch asap.email at ccdes20@yahoo.com.au if need be

The only lender not doing personal gtees that i know of will not do smsf for postcode 3996. Someone mentioned that Bendigo Bank may now be doing them without P…[Read more]

Hi NatashaLike Richard has said, there are no SMSF lenders that will do construction. Depending on how much cash your & your fund have one possible way is to fund the contruction yourself using available cash and have the SMSF borrow for the land.Another problem you may face is now that you have signed a contract. What name did you purchase it…[Read more]

A word of caution with discretionary trusts……if the property is being negatively geared losses are trapped within the trust and can only be applied against future income derived by the trust.

drob1978 wrote:
Hi,Wanting to get a general feel for whether it is at all possible to do the following 1. SMSF purchases land outright (no debt) or if necessary i purchase land with SMSF 50/50 initially2. SMSF then goes 50/50 JV with me in building units or home or small residential whatever (small scale say 2 units but don't think that is…[Read more]

ak123 wrote:
Hi, all,Just wanna hear some brutal and honest opinion on my situation.I am banking with St George Bank, I have gone through most of the approval process. What I need to do now is to sign a contact and starts the valuation to get the final loan approval.I have about 55,000 available for deposit. I am targeting a house with asking…[Read more]

maree_bradross wrote:
oh well that ends that – for the moment anyway

Maybe I missed something, but you could always transfer your existing super balance into an SMSF. This transfer comes across as cash and therefore provides the deposit required.Obviously you should seek proper advice and have a very good understanding of the costs both now and…[Read more]

god_of_money wrote:
Is it safer to loan it to medico? Does any one know about the lending rates? Would it be lower than commercial loan?

Obviously some lenders think its safer although with higher LVR's come higher interest rates eg 90% LVR on medico premises current variable rate would be 8.3%pa.

Hi RichardAgree with you there, some mainstream lenders medico packages still exist (ANZ/Westpac etc) but most have been pulled back in the current economic cliamte however on a deal by deal basis there are still a few other players out there especially when medico's & SMSF is concerned.Rates terms and conditons obviously apply however for some…[Read more]

Mr MThere are potentially two ways in which to finance the purchase;Assuming you have equity in your  own name borrow the funds personally against your own assets and then on lend to your SMSF in terms of the instalment warrants lending legislation.  The loan to the SMSF would have to be non-recourse and all interest would be deductible. Here t…[Read more]

Hi JoshuaYour correct with topping up rental income from salary sacrifice deductions. This can be done up to your concessional limit. At present this is $50,000 per member (or there is a transitional limit of $100,000 for people aged 50 or over at 1 July 2007 until 30 June 2012).The cost of setting up an SMSF and ensuring that you comply with all…[Read more]