SMSF, Commerical Property, Own Business, Long-Term Growth

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ianjackyinvest
Member
@ianjackyinvest
Join Date: 2011
Post Count: 7
December 28, 2011 - 7:32 am
So in my case I would like to buy a 42sqm office for 190k and you are suggesting I may be able t secure 70% LVR and use the balance out of my SMSF, plus have my wife’s company rent the office from the Trustee.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
December 28, 2011 - 7:59 am
Yes as long as the security is acceptable you should be able to get 70% lvr.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
TicTok
Member
@tictok
Join Date: 2011
Post Count: 8
December 28, 2011 - 8:13 am
ianjackyinvest wrote:
So in my case I would like to buy a 42sqm office for 190k and you are suggesting I may be able t secure 70% LVR and use the balance out of my SMSF, plus have my wife's company rent the office from the Trustee.
Hello. From the research I have done in the last few weeks, you can borrow 65-75% of the purchase price/value. Your problem will be a small number of lenders to choose from given the low value of the loan. Many will only look at loans $500k+, others $250k+. At sub $200 there are only a small handful of lenders writing loans but most will do 65%, some 70% and at least one will do 75% (subject of course to other criteria).
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
December 28, 2011 - 8:56 am
Really 75% lvr on a Com security under $250K you learn something new every day of the week.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
TicTok
Member
@tictok
Join Date: 2011
Post Count: 8
December 28, 2011 - 9:39 am
Qlds007 wrote:
Really 75% lvr on a Com security under $250K you learn something new every day of the week.
Cheers
Yours in Finance
I think Adelaide Bank & Bank of Melbourne have a product up to 75% lvr with a $200k (neg.) minimum.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
December 28, 2011 - 9:58 am
Bank of Melbourne Max lvr for Com is 70%.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
December 28, 2011 - 12:20 pm
Ian,
This may not be prudent. All the trust's assets would be tied up in the one property and there would be no diversification so it could be argued the trustee is not investing responsibilily. So, make sure you get some advice regarding this – it may be possible considering the future contributions expected from members.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au