In additions, if there is intention to borrow, there is specific requirement within the trust deed to allowed such transaction. Borrowing power only premitted from 2007, any trust established before that must be amended.
This is also where corporate trustee and holdings trust comes in when property transation is in question. So having the right structure established from day one is important such as the power to grant a charge over asset.
Lending to smsf is consided specialist lending and therefore additional requirement by the banks, it is even more important to gain pre approval before signing on the purchase contract and making sure the right purchaser goes on the purchase contract. stamp duty related to the transaction is also a mine field, having the right name on the contract will save lots when the loan is paid off and when the title of the property is transferred.
The cost or fees charged by the banks also escalate and can run into thousand. It is no longer a simple home loan. Just remember, loans provided by the bank is a limited recourse loan, just like you, there is no room for the bank to make a mistake so expect much more requirement from the bank. Since most bank would require their socilitor to review your trust deed, getting it right will save on overall costs
The most common mistake people make is that wanting to put the family home or investment property into smsf or purchase property from member or related party. such transaction is not premitted by the law.
There is little room for errors and any mistake could be costly to fix. no such exercise as will buy now and think about it later. Allow about 6 to 8 weeks from setting up the struture to pre approval if there is no errors.
