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.
Loan-to-value ratio secured
To loan approval
From approval to settlement
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.
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.
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.
Contribution history
Used two years of historical contributions to support the application.
Rental yield
Included market rental yield in the lending case.
Fund assessment
Supported the lending without assessing the members personally in this application.
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.
Considering a commercial property purchase through your SMSF?
Tell us about the property and your fund’s position. We’ll explain the lending requirements and work alongside your advisers where needed.
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.
