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). The client had sufficient funds to purchase the property outright but wanted to preserve liquidity for future investments.
The challenge
Securing the property while preserving cash
Although the client had enough funds to purchase the property outright, they wanted to preserve cash for future investments. Their target was 80% loan-to-value ratio (LVR) financing, subject to the lender’s SMSF requirements.
Our approach
The client was self-employed and had an inconsistent superannuation contribution history.
We identified an SMSF lender policy that allowed the application to be assessed using total contributions from the previous two years alongside the property’s market rental yield.
For this application, the lender assessed the SMSF’s position without requiring a separate personal servicing assessment of the fund’s members.
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.
