OK guys.
Offer on warehouse has been accepted.
We have around $220k in super, purchase price is $326k. Fund is in accumulation phase, oldest member is 34. Total contributions is around $30kpa.
Plan is to lease warehouse to our own business at market rate of around $14kpa.
Broker is initially going to try and get funding through CBA.
Some general questions (never had experience with commercial lending, or SMSF lending).
Is commercial IO+offset offered?
Warehouse was built in 2009, can depreciation be claimed on the construction costs?
What other lenders would be recommended?
What loopholes are we going to have to go through?
Anything else?
I guess CBA for a SMSF Commercial deal is fine if you like paying over the odds on interest rates and application and ongoing fees.
Personally i would never do a SMSF with CBA resi / commercial but your Broker obviously has reasons for doing so.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Red dragon?
Not for SMSF Com deals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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 my opinion could be a major problem later on in circumstances.
If it was me I’d perhaps try NAB however give yourself plenty of time before signing anything and make sure your broker knows their stuff in the SMSF borrowing space.
New to this but Liberty Financial specialises in SMSF lending, may be worth checking this out
Liberty Super Credit Brochure
Hi Nick
I think Liberty would be the last lender i can think of I would ever do a SMSF Commercial deal with.
Sure they have a place in the market but that is not one of them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
What about westpac or bankwest?
Paulie without appearing rude but shouldn't this be something your Broker should be providing you information on.
If he is experienced in the SMSF space he will now exactly who to use.
You say he is going with CBA so i assume he feels they are the best lender for your circumstance.
Personally i wouldnt use either of the other 2 but thats me.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
richard pm sent.
Yes I think your broker should be the one advising you on the different lenders and their options. SMSF Commercial isn’t that difficult but you have to watch for annual reviews, ongoing fees and whether your SMSF/Custodian deed matches up to the lender’s.
I realise that but hes got no experience with smsf lending. i now what your going to say, find a new lender. problem is on all my previous deals the team i have work well together so to help get it over the line i feel i have to almost back him up, and do my own investigation.
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