Hi, I have been reading up at your website in regard to SMSF and investing in property within SMSF. I got a couple of questions in regard to property investment via SMSF. My understanding of the sequence of actions in relation to the property investment via SMSF is as follows:
1) Set up SMSF through Superwarehouse, I will only set up the individual trustee for the moment as I only plan to borrow 70% of purchase price.
2) Open up a bank account;
2.1 Do I need to tell the bank the purpose of this bank account?
2.2 Is this a special type of bank account?
2.3 Do I need to link this bank account to SMSF?
3) roll over into the bank account opened in the above;
4) Set up the bare trust (custodial trust) structure through superannuationwarehouse;
4.1 Does the bare trust have to be set up before I can engage the brokers to find a suitable lender and get a pre-approval? Or the pre-approval of limited recourse loan doesn’t depend on the set-up of bare trust?
4.2 Does the one-off fee of $950 cover all aspects in relation to the set-up of the bare trust? Which means it includes the stamp duty for the limited recourse loan charged by ATO? Or any other government charges?
5) Get a pre-approval for the limited recourse loan from a lender;
6) Find an investment property (residential);
7) Proceed to seek the formal approval of the loan and settle the purchase and loan. Finally, as the property settlement usually takes at max 6 weeks from the date the contract is signed, I just want things to go smoothly and emails and requests get attended to if I engage Superannuationwarehouse as my SMSF administrator.
Look forward to your replay. Thanks & Regards