Self employed client buy following property in SMSF
We supported the client’s purchasing investment property in SMSF in a challenging situation. Client bought this in a capital growth area with the aim to grow wealth for retirement. |
Challenges |
The client had only 1 yr.’s super contributions which typically is typically a no go zone for self-employed people. Lenders as they want to see a minimum of 2 yrs. of contributions |
Secondly, the lender must lend 80% for the deal to work. Typically, SMSF lenders have LVR restrictions based on their risk appetite for property type, location, and client profile.
Hence finding a solution can be challenging. |
Description | Amount | Comments |
Fund Balance | $ 155,000 |
|
Purchase Price | $ 505,000 |
|
LVR | 80%. |
|
Loan Amount | $ 404,000 |
|
Super Contributions Required | $ 124,000. |
|
Fund Balance after purchase completion | $ 31,000 | Meets fund’s liquidity test of 5% |
Found a home for the deal to settle on time as per the contract.
For more information contact us at hello@amitaggarwal.com.au
