How To Buy Property With Your Own Super Fund
Karen Price was quite financially savvy. She managed her own super fund(SMSF), and had approached her bank for a loan to purchase a property through it. Thinking the finance was sorted out, she made an offer.
The bank, which didn’t specialise in SMSF lending, had approved the loan in Karen’s personal name. Unfortunately, the property was being purchased by the super fund and the borrowing entity needed to correspond with that – not be under her own name.
After 12 months working towards a loan and to iron out the details, and six weeks before the property purchase was ready for completion and settlement, Karen was told that the bank couldn’t actually assist with SMSF loans as this was not a type of finance they offered.
Karen’s settlement agent recommended that she consult a finance broker who specialised in SMSF lending. At their first meeting, the broker presented her with a handful of lenders who were able to assist with SMSF loans.
“I was upfront from the beginning, outlining the various fees, costs, pros and cons of each lender, and their available SMSF product,” the broker explained. “Having enrolled in the SMSF Specialist Course and having SMSF loan experience of more than four years, I was able to help my client with this very specialised loan transaction.”
So, what’s the happy ending? Karen’s SMSF loan is now approved and due to settle just after the new year.
The broker helped Karen out of a sticky situation and provided a solution that suited her needs and, on top of that, Karen and the broker have developed a strong working relationship.
“She has also asked me to look after her residential loans moving forward and intends to refer friends and family to me,” the broker added.
Find an Accredited Finance Broker who can help you secure the finance that suits your needs and know about SMSF loans.
Case study provided by MFFA
*Names have been changed for privacy reasons