SMSF commercial loan - Easy to finance property types

Share your concerns & ideas about commercial property loans in Australia.
WhiteBeard
Posts: 7
Joined: Mon Nov 09, 2015 6:53 am

SMSF commercial loan - Easy to finance property types

Postby WhiteBeard » Tue Aug 02, 2016 10:10 am

I would like to buy a property in my SMSF so I am researching. I have already posted in whirlpool and somersoft but there have not been any great replies yet so I am trying here at the request of my cousin, who said that this forum is great. I would like to know how much I can borrow using my SMSF and a few examples of properties that the banks consider easy to finance so I can prepare beforehand.

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Otto Dargan
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Re: SMSF commercial loan - Easy to finance property types

Postby Otto Dargan » Tue Aug 02, 2016 1:24 pm

Hi WhiteBeard,

With a SMSF commercial loan, you may be able to borrow up to:
  • 70% of the value of a commercial property.
  • 80% of the value of a residential property.
  • $10 million. Any higher will be assessed on a case by case basis.
Please note that banks use different methods of assessing the borrowing power of your fund. So you can have a crack at our SMSF borrowing power calculator to get an idea of how the banks may assess you.

When it comes to property types that are easy to finance, residential property and standard commercial properties are relatively easy to finance. Standard commercial properties generally include offices, factories and warehouses, retail shops and restaurants, and rural properties and farms (conditions apply).

Specialised or unusual properties are more difficult to finance. This usually includes development sites, vacant land (in some cases), properties in a poor condition, and single use securities such as pubs, petrol stations and day care centres.

You can check out our website to learn more on all this. You can also directly speak with one of our mortgage brokers who specialise in SMSF commercial loans by calling us on 1300 889 743 or by enquiring online.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

WhiteBeard
Posts: 7
Joined: Mon Nov 09, 2015 6:53 am

Re: SMSF commercial loan - Easy to finance property types

Postby WhiteBeard » Wed Aug 03, 2016 9:47 am

Thank you Otto. I did not think that I would get a great answer on my first reply. I am planning on buying a commercial property but it is not anything specialised so I am hoping to get an easy 70% lend then. I will call in in a few days to properly understand the process and my options. Good day.


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