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ESuper - Property Purchase - New SMSF??

Discussion in 'Property Finance' started by Shady, 13th Dec, 2015.

  1. Shady

    Shady Well-Known Member

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    Just looking to purchase a property in my super fund. Currently have a fund with Esuper and understand that it's probably not the best option....for me.
    Firstly I've found a property so time is of the essence and I've read that ESuper can be slow..I assume especially so during the Christmas period.

    Considering I'd like to be in a position to sign a contract asap what is my best option?
    - Just bite the bullet and do it through Esuper.
    - Migrate my SMSF to someone else, update the Trust Deed and go from there.
    - Start a new fund with a new trust deed...
    - something else I haven't thought of.

    Any thoughts? or anyone moved their fund away from Esuper?
     
  2. Jeah_

    Jeah_ Well-Known Member

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    If you haven't started an application with eSuper as yet, you will probably not be able to purchase a property you are wishing to move on right now, unless you can negotiate a long settlement on the purchase.

    The process is something like;

    Fill out the application on the ESuper site. They then email you a prepopulated pre-approval application.

    You fill that out and send it back with various documents to ID you, etc. took us about two weeks to get all this done.

    You will get a pre-approval in around a week from sending the docs and you can then make offers, sign contracts etc. We still signed ours with finance clauses. They post you all the docs express and you sign and return, via express. Both formal approvals for our purchases came through in under two weeks from the time we submitted the signed contracts, but that will also be determined by how quickly you return the signed loan documents and whether you need to obtain legal advice.

    I'm not sure how much Christmas will affect this process. With the property market slowing at this time of year, I would of expected the workload on property financiers to lessen as well.

    As for setting up a new SMSF, that may even take you longer, but as always, seek some professional advice for your options. @Redwood will probably be a good point to start.

    Edit: just to clarify, our ESuper timeframe was something like this;

    Initial application (2weeks) + time to make offers, negotiate and sign contracts (2weeks) + submit signed contracts, get paperwork, get legal advice, complete ID process and resubmit (1 week) + wait for bank to recieve paperwork, process and give formal approval (1 week)

    So all up, it was about 6 weeks for us. Your mileage may vary.
     
    Last edited: 13th Dec, 2015
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  3. Shady

    Shady Well-Known Member

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    Thanks Jeah,
    your right, we haven't started the process yet. I spoke to them about a year ago but from memory you had to commit to it before you even had approval or something like that. I dont need hand holding and trading shares is straight forward but setting up the bare trust and getting finance I'd like to be able to talk directly with someone.
     
  4. Shady

    Shady Well-Known Member

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    Did you have personal trustees or a corporate trustee? We have personal trustees at the moment not sure if you can change them or need to setup a new fund. I've seen banks dont like lending to SMSF with personal trustees and better LVR with corporate trustees
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You will have timing issues as rolling over your super out of esuper will take time. I suggest you talk to @Redwood of the forum.
     
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  6. Jeah_

    Jeah_ Well-Known Member

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    We have a corporate trustee. I'm not sure if any of the banks that eSuper use will even lend to personal trustees.
     
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  7. JohnPropChat

    JohnPropChat Well-Known Member

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    Looks like they lend even if the SMSF has personal trustees but they may still insist that the bare trust have a corporate trustee.

    SMSF Property - Residential Property with Borrowing | ESUPERFUND
     
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  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    But is this a good idea to have an individual as trust?

    Short answer is no. Long answer is nooooooooo.
     
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  9. CosmicTrevor

    CosmicTrevor Well-Known Member

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    Why the rush?

    If you don't have a corporate trustee for your SMSF then it might be wise to take a deep breath and review that first. I don't know of anyone that recommends individual trustees for SMSFs.
     
  10. JacM

    JacM VIC Buyer's Agent Business Member

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    Agreed. Take a breath. If the setup is wrong the property won't be able to serve you. Get your ducks in line first. Keep in mind that whether you are going through eSuper or otherwise, the finance clause takes time to satisfy, even if you have a pre-approval in place. Even if you didn't have the hassle of xmas and you had a pre-approval, things would be real uncomfortable if you didn't give the finance clause 21 days.
     
  11. Shady

    Shady Well-Known Member

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    Thanks all..

    Had a chat with Redwood and have decided to take my time purchasing with the SMSF. I'll address it in the new year and get it setup before looking for a property. Still pursuing the purchase just in personal names not the SMSF.