Pending SMSF purchase and other purchase

[MarkA]

I'm in the middle of a purchase within my SMSF but have found a property that I'd like to buy outside of super. Would the pending SMSF purchase have any bearing on the other purchase?

 

[Terry_w]

Yes it could effect. Serviceability will be affected both inside and outside of super if a personal guarantee is going to be given. Make sure you can qualify with both the loan inside and the loan outside of super. Better yet, avoid giving a personal guarantee.

 

[Redwood]

Yes it could effect. Serviceability will be affected both inside and outside of super if a personal guarantee is going to be given. Make sure you can qualify with both the loan inside and the loan outside of super. Better yet, avoid giving a personal guarantee.

Avoiding a personal guarantee,,,,, mmmmn something i'm writing on at the moment terry.

There is a lender that this scenario will not effect you serviceability...

Cheers, Ivan

 

[Terry_w]

A cryptic last sentance Ivan.

If the SMSF can support the loan on its own, including the contributions then there is 1 lender that will not insist on a guarantee - that I know of, there may be more.

If a person gives a personal guarantee then the SMSF will need to be declared when going for futher borrowings outside of super and this will affect borrowings, generally.

 

[Paul@PFI]

Another reason why human trustees should also be avoided in a SMSF and a company Trustee used.
- Lower LVR for some/most lenders that do SMSF loans
- Ties up personal credit

 

[Terry_w]

Another reason why human trustees should also be avoided in a SMSF and a company Trustee used.
- Lower LVR for some/most lenders that do SMSF loans
- Ties up personal credit

Good point. I have never done a loan for a SMSF with a personal trustee either, but the majority of SMSFs have individual trustees.

A company trustee will also effect personal borrowing capacity if a personal guarantee is given.

 

[Marty McDonald]

If the SMSF loan is clearly self supporting I have been told by a few lenders just to make notes as such and not include the guarantee for servicing. Haven't tested that yet. There are some lenders who will ignore business debts if the business services the debts and no add backs are needed. Similar scenario and logic as this.

However there are many lenders / most lenders who would want to the full liability in personal servicing which is not something people think about when entering into these arrangements!