Have you brought a IP with a SMSF Loan

[Trying2Learn]

Hi,

My OH and I have just applied for a loan (with one of the major banks) using our SMSF to buy an IP. Not sure if it has been approved or not yet as it has only been a week, and by what I have read it can take a while.

But what I would like to know is, Have you done it ? Are you happy that you have and would you do it again ?

I would love to hear the good the bad and anything that you would do over or not.

I am hoping to learn from your experiences if that is OK with you.

Thanks for your time

 

[perky29]

I would be using MikeF as your broker if I were you...
Basically before you purchase - you may find your deed is not set up properly to borrow - so you may have to alter your deeds to use a bare trust.
Mike can point you in the right direction for that - who to use.
I am also the guinea pig for NAB's loans (1st person in Aus to use them - lucky me ) - it took nearly 6 weeks for written finance approval to come through.
Now waiting to get those docs and independant legal and financial advice that it looks like I am required to do.....the things we go through

 

[Trying2Learn]

Thanks Perky for your reply.

My OH and I applied last week to NAB through our broker. We have never used him before but he did come well recommended. He has never done one of these before but has made plenty of phone calls and does seem eager to get it right.

If you have waited 6 weeks for NAB I guess I won't be holding my breath then after one week. If you are number one I wonder what we are ? No. 20 maybe LOL

I am sure our SMSF deed is set up to borrow so that should be OK ( fingers crossed )

I was hoping that someone here would have done it already and possibly bought a residential IP with it.

Is it your intention to buy a residential IP also ? Sorry if that question is to nosey you can just ignore it if it is.

Thanks for your time

 

[perky29]

It actually is a residential property (not commercial).

One other thing to note, they charge a bit on other things - like the viewing of the trust deeds which was $1850.

 

[373au]

It actually is a residential property (not commercial).

One other thing to note, they charge a bit on other things - like the viewing of the trust deeds which was $1850.

I too will be purchasing a residential property into my SMSF, to purchase a property you must set up an additional security company & security trust. I too will be using the NAB product & trying to gear it to the full 65% LVR.

They did ntell me there was costs for NAB's solicitors to review the trust deeds to ensure suitability but i didnt expect the cost to add up to $1850.

What interest rate are they giving you?

Spud
Geelong

 

[Trying2Learn]

I did know that there was an $1850 fee for NAB Legal but I have to say I was under the impression that this was payable if the loan was accepted.

I will be a bit ticked of if they charge me the $1850 and then knock back the loan.

We were also told that there is a $8 per month admin fee

Our interest rate quoted last week was 9.36% with a loan term of 30 years. I was told the min LVR with NAB is 70%. Are you sure you are getting it for 65% if so I want that too....lol