Need help from the Brains Trust here - SMSF new build / Friendly Developers

Discussion in 'Property Experts' started by Slightly_older_younggun, 7th Jun, 2019.

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  1. Slightly_older_younggun

    Slightly_older_younggun New Member

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    7th Jun, 2019
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    Hi All,

    This is my first post here, was a previous member of the old Somersoft forum but I have been a silent lurker these past years.

    I have an issue and I need help from the experts here.

    I'm wanting to construct a brand new house that is to be purchased by my SMSF and partially funded by a loan.

    I'm fully aware of all the issues of holding property in super, lending requirements, liquidity risks etc and the expected ongoing costs. Also aware that the lending markets for SMSF has shrunk considerably.

    As a SMSF (and rightly so) cannot develop a property and buying a house and land package via SMSF is practically impossible when lending is involved. The solution seems to be buying a completed project from a developer.

    So, does anyone know of a developer in SA that would buy land / construct a property (to your specifications) and then sell you the house once its complete. Thereby getting around most of the issues of new builds and SMSF Lending?

    Its a tough ask as they would wear a lot of risk.

    Alternatively anyone in the past 6 months had any luck with a SMSF buying house and land packages with a loan? I like to believe in miracles.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You could potentially do it and sell to the smsf. Must qualify as business real property which can happen with development stock even if resi