We have provided a simple step-by-step process to ensure you are ready to search for a property! Don't forget to read the additional requirements below!
1. Do you have an SMSF and, if so, is it able to borrow? An SMSF upgrade may be required
2. A seperate "bare trust" must be created which will hold the legal title to the property until the loan is fully repaid
3. Arrange a "limited recourse borrowing" through your bank. Under these loans, the bank's rights are limited to the asset held in the bare trust. There is no recourse to the other assets held in the SMSF
If you have completed the above steps, you are now ready to search for a property!!!
Important!!!
- It must be solely used to provide retirement benefits to members of the SMSF
- It must not be lived in or rented by a member of the fund or a relative of a member
- It may not be purchased from a related party of a member
- It may be used to purchase your business premises
Remember, you should seek the advice of a legal advisor with experience in this field, in conjunction with your accountant, before you start your property search. There can be significant risks, unexpected time delays and stamp duty implications which can all be avoided if you get the property guidance from the outset.
Bird Legal has the expertise to guide you through each step to achieve your investment strategy.
Call us today for more information!!
BATHURST - 02 6331 7700
OBERON - 02 6336 1758
