Property Investment via SMSF
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;
Questions:
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;
Questions:
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
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Comments (1)
Hein Preller
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j,
Your sequence of event are correct. You can choose any bank including Macquarie:
http://www.superannuationwarehouse.com.au/running-smsf/macquarie-smsf-bank-account/
You do not need to tell the bank what you want to do. The bank account must be in the name of the SMSF.
The bare trust is only set up when you are sure about the property you want to purchase. The info we need is set out here:
http://www.superannuationwarehouse.com.au/property/lending-in-smsf/bare-trust-details/
Remember, if you need a corporate trustee or custodian trustee, we charge $950 for each of these structure. So in the most likely scenario, it will cost you 3 x $950, for the bare trust and 2 pty ltd’s.
Trust this makes sense.
Regards Hein Preller Director – Superannuation Warehouse 03 86106999 (Office) 04 11241215 (Mobile) superannuationwarehouse.com.au
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