> 70% LVR for Karratha IP via new SMSF?

[The Happy Hippy]

Hi all -

I've just set up an SMSF, and am interested in purchasing an IP in Karratha, WA.

My mortgage broker has said that the banks he deals with won't go above 70%LVR for new SMSF purchasing in resource-dependent towns like Karratha.

Does anyone know of any lending institutions or mortgage brokers who could provide 75% or 80% LVR for my situation?

Thanks,

Happy

 

[Peter_Tersteeg]

I think you'll be doing well if you get above 65%. Very few lenders will go to even 70% for SMSF loans. I'm not aware of any lenders that go higher.

 

[tristo]

You'll save money on gutters in Karratha - no house has them!

Karratha is a bit of a hit or miss I'd think. Mind you, at $1000 a week rent for a 3 bedder, it's not to be excluded.

 

[Aaron Sice]

$1500 a week for a 3 bedder - new - $500 a room.

$1200 a week for older stock.

Karratha is all transportable - local builders cost more, but are valued better as well.

if you're going transportable - CBA is the only one who'll lend.

 

[MikeF]

Hi all -

I've just set up an SMSF, and am interested in purchasing an IP in Karratha, WA.

My mortgage broker has said that the banks he deals with won't go above 70%LVR for new SMSF purchasing in resource-dependent towns like Karratha.

Does anyone know of any lending institutions or mortgage brokers who could provide 75% or 80% LVR for my situation?

Thanks,

Happy

Hi Happy

In terms of SMSF loans.....

St George are probably the best (only just) at 72% and Karratha postcode (6714) is OK by them up to $400K.

CBA say they do up to 80% for residential property (not sure if Karratha is acceptable) but their SMSF product (Supergear) requirements are nearly always impossible to meet including the requirement to have at least $300K in net assets before they will consider an application. Their fees/costs and interest rate are also not for the faint hearted. The SMSF trustee also needs to be a company as opposed to individual trustees.

Only other option (and this may not suit you) is to borrow all/some in own name using equity in existing property outside super and onlend it to your SMSF via back to back member loan arrangement remembering that you will still need to document every thing properly.

 

[The Happy Hippy]

Thanks for all the replies!

Mike - with CBA - do the $300K in assets need to be in the SMSF? Or could it be the equity in my PPOR?

Happy

 

[MikeF]

Thanks for all the replies!

Mike - with CBA - do the $300K in assets need to be in the SMSF? Or could it be the equity in my PPOR?

Happy

need to in the SMSF