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Gooday
Great Site , great info.Hope I can ask questions ?!
I am in the process of establishing whether I can set up a self managed super fund and purchase commercial property. I have devoured the ATO reqts and your own insights re provisions and reqts.
I fulfill most of the criteria. Although one company state I must be over 55 yrs (I'm 52) . Will be able to roll about $250k into the SMF , perhaps a little more by way of my wife's super and proceeds from a managed fund. So lets say $275k.
The commercial property I am looking at will sell between $350k – 380k so am short say $120k taking into account extras (stamp duty , legals /SMF start up costs etc)
I understand the shortfall can be funded by an Installment Warrant and have a good understanding of how these work having sold property via Installment Contracts before.
Believe I can expect well above market interest to be charged, the terms negotiable (time frame of contract ?) to a degree.
The big question :Are there reputable companies doing these contracts ? Can I expect to be marketed to if subscribing to your newsletters (as I have).
Is it just a case of googling or are there specialist Warranters ! ?
Regards
ian
Hi Ian
Many thanks for your kind words on our website.
Unfortunately, I cannot comment on the good, the bad and the ugly in commercial lenders but I will try to source information over time. I am aware that the SMSF finance market is in a state of flux at the moment because of the rules requiring all advisers to be licensed if discussing or promoting property warrants to SMSF investors. (Note that SMSFs cannot borrow money directly, except in exceptional circumstances). What this has meant is a mad scramble by advisers to secure such a licence. When I have more information I will publish an article on the issue.
In response to your second question, my book DIY Super For Dummies covers setting up a SMSF in detail. I outline 10 main steps. If you are interested in the book, we provide a link on our website.
Thanks again for your interest.
Regards
Trish