Hi

Most lenders will not have a problem lending to a newly established trust as they will require you (and other adult beneficiaries) to guarantee/indemnify the borrowing.

With your property as collateral you should no problems.

Mike

Julie Ron wrote:
Hi, we are about to sign a contract to purchase our first investment property through our SMSF. It's a one bedroom 58 square metres off the plan in Carlton Melbourne, for completion in 18 months. We still need to set up a bare trust to borrow 80% ..a bit scared… hope we are doing the right thing?!  Any advice welcomed.…[Read more]

TZ wrote:
“An Australian Citigroup subsidiary, Citibank, has now started to facilitate loan transactions for Australians looking to purchase US property.” http://www.abc.net.au/pm/content/2012/s3480532.htm. This appears to be a new initiative. Perhaps contact Citigroup to see if they are planning to expand their services in the near future to…[Read more]

Put it in the facility with the highest interest rate. This will generally mean the LOC.

Hi

As long as you ensure that all Limited Recourse Borrowing Arrangement requirements are met and your investment strategy covering such an investment I can’t see why not.

Only real issue will be whether an overseas lender will understand the structure and legislative requirements including the Limited Recourse nature that the loan documentation…[Read more]

HiSorry to say but no lender here will touch it.

cosmicstar wrote:
Hi,My first post here and am not sure if the post should be here or not. So please pardon me if its at wrong place.I have $60000 in my super right now and I wish yo buy a residential property overseas. The cost of the property is approx $150k and I want to start a SMSF and maybe get a loan for the remaining amount.Can someone…[Read more]

Hi

CBA are not likely to do the deal as they have a minimum SMSF equity requirement of $250K-$300K. Also, as Richards says CBA fees & costs will be a killer.

Last time I read their info memorandum you also had to have the property professionally managed and use their security custodian. Both of these come with their own additional costs and in…[Read more]

Anthony K wrote:
Hi Paullie & Mike. It's not wise to exchange contracts until the SMSF has a Letter of Offer for the loan.Anthony K

Totally agree…….wasn't suggesting anything else. SMSF lenders are generally very slow to process/approve and as such I always recommend to my clients to obatin an approval before signing anything.

Paullie wrote:
From the above information any offers need to be from PAULLIE CUSTODIAN Pty Ltd. This is correct yes?

Yes, correct

Hi RichardSo they will lend $A against NZ security….as you say you learn something new every day of the week.Cheers

tjtert wrote:
Hi, I'm really a first time first timer, can anyone advise me if at all, is it possible to use one's Superannuation as a deposit for purchasing a property? And also, I do own some land in New Zealand and can I use that as a means to apply for a loan here in Australia? Please help.

Simple answers are: Yes on the first point as…[Read more]

Terryw wrote:
MikeSomething happened to your post – it appears to be nothing but a quote of the opening post.

TicTok wrote:
My first post and I think this is the right forum but it could fit in a couple.I'm hoping there may be a few knowledgeable people here who can give me some pointers in the right direction and some advice.My wife and I are close to 40 yrs of age (me on the wrong side and her on the right side).We have only been in Australia about 8…[Read more]

HiI use MLC which was competitive at the time when the policy was taken out.

Terryw wrote:
But the fin planner is suggesting he contribute $450,000 in one year by bring forward 3 years of $150,000. However my mate is over 65 so I beleive the bring forward part is not available and he will be limited to $150,000 pa while still working and under 75. Excess constributions  can have serious consequences. excess can be taxed…[Read more]

dw8998 wrote:
Thanks terry, just sent you a PM as well.So after doing a bit more reading, steps include:1) Getting a certificate IV in financial services which costs around $5002) Obtain a credit licence3) Find an aggregatorAm I missing anything from this list? Also how long should this entire process take?Is it necessary to become MFAA approved…[Read more]

hansella wrote:
Does anybody know if a SMSF fund can buy US property ?

Sure, so long as your investment strategy covers it and the correct legal structure is established.However the risks are many and this strategy is not for the in-experienced.

Steve65 wrote:
I am looking to buy my first property with my SMSF.  Assuming the property is paid off in 10 years,will I then be able to subdivide the land ? If not, what flexibility do I have, could I sell it to myself ?Thanks Steve

I'm no expert on the SIS Act but if all debt had been repaid and the property transfered from the security…[Read more]

tjunction wrote:
With settlement due at the end of this week, the lender has just told me that they now also require the loan to be within a discretionary trust with a company as trustee.I'm trying to determine if this is a deal breaker for a couple of mum/dad investors with one other IP. 

HiWhy the lender would try to give you this advise is…[Read more]