Property Investment via SMSF
Hi, I’ve been reading on your website about investing in property within an SMSF and I have a couple of questions. My understanding of the sequence of actions required in order to make a property investment via an SMSF is as follows:
- Set up an SMSF through Superannuation Warehouse (I would only be setting up with an individual trustee to start with as I only plan to borrow 70% of the property’s purchase price).
- Open up a bank account;
- Do I need to tell the bank the purpose of this bank account?
- Is this a special type of bank account?
- Do I need to link this bank account to the SMSF?
- Roll over into the bank account opened in the above;
- Set up the bare trust (custodial trust) structure through superannuation warehouse;
- Does the bare trust have to be set up before I can engage the brokers to find a suitable lender and get a pre-approval? Or is pre-approval of a limited recourse loan unconnected with the setting up of a bare trust?
- Does the one-off fee of $950 cover all aspects of the bare trust set-up? By which I mean: does it include the stamp duty charged by the ATO for the limited recourse loan; or any other government charges?
- Get a pre-approval for the limited recourse loan from a lender;
- Find an investment property (residential);
- Proceed to seek formal approval for the loan and settle the purchase and the loan. Finally, as the property settlement can take up to 6 weeks from the date the contract is signed, I‘d just like to be sure that everything will go smoothly and that things like emails and requests will all be attended to if I engage Superannuation Warehouse as my SMSF administrator.
Look forward to your replay. Thanks & Regards
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