Super Credit loans can be used to purchase properties that are utilised as a business premises for SMSF member or their family.
With a commercial security SMSF can actually occupy the premises or lease it.
- Engage your tax adviser (if you wish we can assist);
- Establish SMSF if required;
- Obtain funding pre-approval and establish property trust (also commonly referred to as security custodian or bear trust);
- Acquire investment property;
- Initiate Super Credit funding.
Loan terms – 5 to 15 years (at lender discretion)
Maximum loan to value ratio – 70% (at lender discretion)
Minimum loan size – $150,000 (at lender discretion)
Maximum loan size – $5 million (at lender discretion)
Security type – Commercial real estate within acceptable locations
Standard securities are – strata office, factory/warehouse, shop, converted residence (incl. medical rooms/offices).
Non-standard securities are – residential blocks greater than five, shopping/function centres, vacant commercial land, motels, car yards, and purpose built commercial building, caravan parks, and residential development units.
The process to get a SMSF loan can be seen in the diagram below.