A Quick Overview
| Details | Description |
|---|---|
| Customer Goal | Purchasing a commercial investment property under SMSF commercial property loan to be rented out to the husband's company. |
| Problem | Difficulty in the proposed solution of securing an SMSF commercial investment property loan due to its complex structure and understanding to expand the husband’s accounting firm. |
| Loan Amount | $240,000 |
| Security | Office, SPRINGWOOD QLD |
| LVR and Term | 70% LVR (loan to value ratio), 30 years loan term |
| Income | Husband – $130,000 AUD p.a. Wide – $50,000 AUD p.a. with additional shift bonuses |
| Solution | Diagnosis, comparison and execution of an SMSF commercial property loan to best match the client’s intent and need to expand husband’s accounting firm. |
The Story
Securing a self-managed superannuation fund (SMSF) commercial investment loan is a rigorous process that is often scrutinised for its length and complexity. It requires SMSF trustees to provide financial statements, tax returns, independent audit results, among other documents.
The effort may seem unbearable for some; however, our brokers are positioned well to make this lengthy process a short and simple experience.
Meet The Customers
Ron has been the director of an accounting firm for over 10 years and also serves as an accountant there. Becky, having worked in an admin role in Ron’s firm previously, is now a midwife. Together they intend to purchase a commercial investment property with an SMSF loan and rent it to Ron’s firm.
Ron’s accounting firm has a strong financial position, with turnover increasing from 2019 to 2020. This puts Ron and Becky in prime position to secure an SMSF loan.
The Challenges
The priority for Ron and Becky was to keep the securing of the SMSF loan as simple and short as possible. The biggest hurdle to overcome was purchasing a commercial investment property under SMSF loan which is a niche and is not readily available with many lenders. Challenged by this and the sheer amount of documentation required, Ron and Becky turned to us for professional help.
Securing The Best SMSF Loan
Scouring through various lenders, Home Loan Experts mortgage broker Rojan Paudel found the best match providing the lowest interest rate and the best overall package for Ron and Becky. The process began with providing the lender the following information:
- Superannuation Trust Deed for a Self-Managed Fund
- SMSF company constitution
- Certified copy of the custodian trust deed
- SMSF financial statements, including copy of super fund tax return, copy of super fund audit report
- Independent signed audit report
- Tax invoice for the SMSF
- Rates notice for the investment property held under the SMSF
- Rental income statements of super
- Personal annual super statements
Rojan found a lender willing to approve a loan to buy commercial property under an SMSF to rent to Ron’s company. He secured the best financial solution for the couple based on their needs:
- A loan of $240,000
- Loan-to-Value Ratio (LVR): 70% (Client’s preference)
- Interest Rate: 4.70% a year
- Loan term: 30 years
SMSF Loan Secured
Securing an SMSF loan meant a great deal to Ron and Becky. They had decided that purchasing a commercial investment property to rent to Ron’s accounting firm was the best way to expand his operations. Rojan delivered on this by evaluating options and executing the rigorous process, making things simple for the couple.
Upon first contact with Ron and Becky, Rojan was able to gather all the documentation required and get them formally approved within a month. Ron and Becky couldn’t thank Rojan enough for his outstanding work.
Looking To Purchase An SMSF Investment Property?
We specialise in SMSF loans. Get in touch with us to learn more!
Speak with a Home Loans Experts specialist mortgage broker by giving us a call on 1300 889 743 or by filling in our short online assessment form to find out if you qualify for an SMSF loan with competitive interest rates.