Case study · SMSF commercial property finance
SMSF finance for a financial planner’s business premises
A financial planner wanted to buy commercial premises through their self-managed super fund while keeping cash available for future investments. Write Finance secured 80% LVR financing.
Discuss Your Property Finance
80% LVR
Loan-to-value ratio secured
21 days
To loan approval
37 days
From approval to settlement
The client
Buying business premises through an SMSF
The financial planner wanted to purchase commercial premises for their business through their self-managed super fund (SMSF). They had enough super to buy the property outright but wasn’t sure if this was the right move.
The challenge
Securing the property while preserving cash
Althought the client had the cash to fund the purchase, they wanted to keep funds available for future investments. The target was maximum borrowing and we landed on a 80% loan-to-value ratio (LVR) financing, with SMSF lending requirements to work through.
Our approach
A lending case supported by contributions and rent
Our client was self employed and there was inconsistent superannuation contributions throughout the life of the business.
Leveraging SMSF lender policies were able to consider the total contributions in the last 2 year in isolation, together with market rental yield, to support the lending.
For this application, that approach supported the loan without a personal assessment of the fund’s members so we didnt have to take into consideration ability to service their existing living expenses, personal debt and commitments which streamlined the application process.
01.
Contribution history
Used two years of historical contributions to support the application.
02.
Rental yield
Included market rental yield in the lending case.
03.
Fund assessment
Supported the lending without assessing the members personally in this application.
The outcome
80% LVR financing. The property secured.
The client secured 80% LVR financing, with approval in 21 days. Settlement followed 37 days after approval. The client completed the purchase without losing the property to a competing offer.
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This is a past client outcome. Available finance, assessment requirements and timeframes depend on individual circumstances and the lender. SMSF, tax and legal advice should come from your qualified advisers.
