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The property is in Canberra. Yes, we do have a signed tenancy agreement in place. Unfortunately, we don't have landlord insurance on this investment. Yes, we have lodged the bond with the rental boards.
Is this a Rowan Burns seminar group and they are looking at land in Melton?
http://www.marketfirstgroup.com.au/veneziane
If so, I believe in Year 1, you have to pay an option premium of $40,000. They advise that the option premium is so that you are able to have the opportunity to get into the deal. It does not go towards the purchase price.
In Years 4-6: You will then need to pay the 10% deposit & sign the Contract of Sale E.g- if you land lot was valued at $200K, then you would pay $20K. And you can pay that in the following ways:
1) Using your SMSF
2) Bank Guarantee against equity – you would need to have $30K in equity.
3) Cash
In Years 8-10: Settlement. If you decide to settle instead of ‘cashing out’ then you would get a loan from the bank for the remaining $180K. I was told that a SMSF can get a loan from the bank, but you need to set up a Bare Trust just prior to signing the Contract of Sale in approx. 4-6 years time.
