Investment Loan via New SMSF

THE SITUATION

The clients reached out to us about their plans to purchase multiple investment properties using their SMSF.

One member (female applicant) was over 65 and had began drawing money from her existing superannuation fund, while the second member (male applicant) was working as a chef supervisor in an oil rig in the Indian Ocean.

Their SMF was newly established for the purpose of the property investment, and the Super Guarantee was not deposited to the new SMSF.

THE CHALLENGE

  • The main challenge in this loan scenario is in finding lenders that provide SMSF loans which accepted newly established SMSF’s. Not only this, it was lenders with policies that allowed for maximum borrowing capacity for multiple property purchases and minimum liquidity requirements
  • There was also a renovation loan application in progress in parallel which were not previously disclosed which added a hurdle to achieving the clients’ goal
  • There was a logistical challenge, due to the location of the male applicant, which made it difficult to send loan and legal documents for signing.

THE RESULTS

Liberty was considered the most suitable lender for our client’s goals.

We ran scenario testing with the assessment team and sought the support from the BDM regarding accepting newly established SMSFs.

The elderly member needed to be removed from the SMSF, which meant the trust deed and other relevant documents had to be updated accordingly.

At the same time, we actively worked with the accountant to procure all the relevant documentation for the application.

Since we picked up this deal, the clients were able to purchase two investment properties via his SMSF within a period of 6 months.

WHO TO TALK TO

Tommy Lim
Managing Director
Contact Us

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