All Topics / Finance / Multi Property Limited Recourse Loan

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  • Profile photo of ausi ski bumausi ski bum
    Participant
    @ausi-ski-bum
    Join Date: 2004
    Post Count: 18
    May 1, 2013 - 6:42 am

    I have a limited Recourse loan on a SMSF property which has about $55,000 to go, I want to buy a new property that I need less than 200,000 (the banks minimum amount). so I want to combine the two loans into one.  Can you take out a Limited Recourse loan involving multiple properties or is it restricted to just the one. 

    Thanks

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 1, 2013 - 8:10 am

    Hi Aus

    No regretfully SISA legislation requires a single Asset to be secured by the borrowings.

    i have a Commercial SMSF loan application going thru for a forum member who is buying 3 separate commercial offices and the lender is having to do 3 separate valuations.

    Not sure which lender you are dealing with but in the main you can go down 50Kminimum  for a SMSF loan.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of ausi ski bumausi ski bum
    Participant
    @ausi-ski-bum
    Join Date: 2004
    Post Count: 18
    May 1, 2013 - 11:44 am

    Thanks would be interested to know institutions loaning less than 200,000 was thinking of extending the redraw on my own home then lending to my fund company via a leagal mortgage but if single property is the barrier better leave this alone for a few years. 

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    May 1, 2013 - 12:31 pm

    Ausi ski bum – it would be easier if you just got a broker on board rather than try and upskill on what they spend a lifetime learning

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 1, 2013 - 12:35 pm

    ASB hate to say you cant do Non related loan to the Corporate Trustee you need to do it to the Security Trustee.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of ausi ski bumausi ski bum
    Participant
    @ausi-ski-bum
    Join Date: 2004
    Post Count: 18
    May 1, 2013 - 11:01 pm

    I might not have used the exact terminology but I set up the means to do this with my Lawyer a while back so I know I have the right structure in place, I got a really good guide from Kris Kitto that was very helpful in doing this.  Best $50 I ever spent. 

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 1, 2013 - 11:51 pm

    I beleive a member or a related party can lend to a SMSF. But the SMSF cannot give security. A SMSF cannot borrow to acquire an asset either, unless a single acquireable asset and security trustee in place etc.

    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

    Profile photo of ausi ski bumausi ski bum
    Participant
    @ausi-ski-bum
    Join Date: 2004
    Post Count: 18
    May 2, 2013 - 1:17 am

    I live near Wagga Wagga does anyone know a Broker I can talk to in this area. 

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