Hi new to the forum and the world of investing. A few facts;
we are 5 years here from the UK, now residents, my wife and I are mid forties. Have a gross annual income in excess of 390k combined. Recently set up my SMSF, taken from AMP fund with my existing employer $185K in fund. My wife wants to set up her own IT training company in local offices, approx $190k. Question:
can I use the SMSF to procure the offices, obviously after the lender has agreed what percentage they will lend, I am assuming 50% at worst.
Then lease the property from my Trustee to my wife’s company who will pay the rent which will go back into Fund.
A little naive as this is our first venture into investing, I am currently reading Steve MacKnights “130 properties, second edition” given me lots of ideas. Please be honest with replies, there are lots of gaps in our logic. IanHi both
Firstly welcome to the forum and hope you enjoy your time with us.
Always good to see some fellow Brits on board.For standard retail office security you should be able to get upto a maximum 70% lvr with certain SMSF lenders however you are right 50-65% is the norm.
The proceedure you are suggesting about your wife's company renting the premises off the SMSF is fairly standard and as long as the rent is deemed the market rent should have no issue.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Absolutely nothing wrong with that logic, in the case of your super fund, there is no problem with purchasing commercial property. You haven't mentioned your ages so you may have restrictions on how much you can contribute via salary sacrifice.
Thanks Richard we seem to have two steams going in a couple of forums, appreciate your help. What is your experience with lenders do you have any to suggest for first time MSF users, especially with my idea in mind. I am sitting with a couple of guys recommended in Melbourne by my accountant in early Jan to put a 3-5 and 10 year Plan in place. Lines of credit or access to credit will help going forward. Thanks again Ian
Scott thanks for coming back, we are 47 and 48. I am contributing around $3k per month at the momet into SMSF from salary and my wife $400 per month.
Just remember that the usual fundamentals apply for a commercial property – carry out your due diligence, check out any plant & equipment (engage appropriately qualified professionals to prepare reports), if you decide not to use the premises how easy will it be to lease out the premises? What other developments are approved/are these competition? It may be worth finding something which has a short term lease in place (initial yield will be higher due to impending vacancy/percieved risk ov vacancy).
As it is to be a training centre, proximity to transport is a must (good tram links &/or close to CBD). You haven't mentioned your preference for strata or free standing buildings – the latter giving some potential for additional development (eg extension/rebuild etc) but obviously your budget will be a key determinant.
Ian Yes have a couple of lenders in mind who would look at the deal.
Must admit you have lost me on the LOC comment unless you are looking at funding the deal to your SMSF yourself and not looking for external funding.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Apologies my LOC comment is based on using my SMSF and using external funding for part of it. SMSF 40% and external for the LVR.
Richard have you launched your Ebook yet?
Very close Ian.
Just need a couple of days when i dont get in 3 or 4 deals to finish it off.
Even took an enquiry Xmas day so that shows you how busy it is at the mo.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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