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Help setting up SMSF Fund for us

Discussion in 'Property Finance' started by MohWei, 31st Jul, 2015.

  1. MohWei

    MohWei New Member

    Joined:
    13th Jul, 2015
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    Location:
    Melbourne
    Hello all,

    Can anyone please suggest who can help us setting up SMSF. We would like to buy a property please

    Regards
    MohWei
     
  2. Redwing

    Redwing Well-Known Member

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    WA
    Hi MohWei

    What do you have in Super and what are you looking at?
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Only lawyers can set up SMSFs - but they cannot give financial advice which would include things such as should you set up a SMSF or what the SMSF should invest in.
     
  4. MohWei

    MohWei New Member

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    13th Jul, 2015
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    Melbourne
    Thank you. Will soon
     
  5. Redwing

    Redwing Well-Known Member

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    From the SMSF Review

    SMSF Setup and Administration service providers

     
  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Do you under how finance works within SMSFs?

    1. Max LVR 80% - may need to look at 70% depending on servicing/borrowing capacity
    2. You need to have 10% liquidity in the fund after purchase
    3. Bank fees are approximately $2,500
    4. Servicing is ultra tight so income would need to be really decent
     
  7. Redwood

    Redwood Well-Known Member

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    22nd Jun, 2015
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    Location:
    Melbourne
    Hi Moh Wei

    Hope all is well.

    Congrats on getting your super moving!

    Please ensure you educate yourself with the risks and benefits of SMSFs before proceeding - there are a number of considerations involved before you set up an SMSF and further once you set up, the structuring is paramount to ensure the transaction is compliant and just as important that the SMSF property purchase is smooth without surprises. You can read up on bare trusts on many information sources and the SMSF loans are "limited recourse" which are different to a standard investment loan.

    Usually setting up an SMSF is not a 'prompt' reaction and I assume you have been thinking hard about an SMSF and now is the time to pull the trigger, so ensure you partner with the right provider to get the process going smoothly. Further, obtain a pre-approval on finance, lenders are tightening LVR so plan for a LVR of 70%.

    As of the last week, AMP has withdrawn their product, St George has reduced LVR to 70% and La Trobe has also reduced LVR to 70% overall with a higher interest rate of 5.695 (effective tomorrow morning).

    Hope that helps!

    To success, Ivan
     
  8. Dazedmw

    Dazedmw Well-Known Member

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    Just out of interest what was La Trobe previously? LVR that is.
     
  9. Redwood

    Redwood Well-Known Member

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    Dazesmw,

    La Trobe is a specialist lender for SMSF, one my firm supports.

    They were previously 5.44% for 70% LVR and 6.99% for 75% with 80% on extreme exception. As of tomorrow the rate will be 5.69% an increase of 25 basis points. La Trobe will not exit the market - just making the change for sustainability of the SMSF product going forward.

    There are still a couple of lenders that will do 80% LVR with SMSF, question is for how long.

    Cheers, Ivan
     
  10. Dazedmw

    Dazedmw Well-Known Member

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    Thanks Ivan. I have connections who have a bit to do with La Trobe and speak fairly highly of them. It's interesting to see how the market is changing.
     
  11. Chilliblue

    Chilliblue Well-Known Member

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    My advise after setting up one a few years ago is to speak to your accountant and/or trusted financial planner and get advise pertaining to your situation and whether it is the right investment structure to purchase property.

    If either or both start trying to sell you a property find an alternative.
     
  12. KayTea

    KayTea Well-Known Member

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    10th Aug, 2015
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    Location:
    Brisbane
    Hey Redwing -

    I've been checking out this list - it's more than a little overwhelming, with soooo many options, and packages, available.

    Have you used any of these? Can you give any (personal) endorsements (or 'steer clear of…') advice? If you're not brave enough to post publicly, can you please PM me.

    I'm just about to look into setting up my own fund, at the recommendation of an FP, and while I understand the steps involved, I also know it's a legal minefield, so I'd like to use a firm that is reputable and reliable.