SMSF Single Contract Purchase Summary

  • User By Aus Investment Properties
  • 1 year ago




By utilising the services of our SMSF facilitator, it is possible to invest in
traditional House & Land contracts within your SMSF, something that was
previously inaccessible.
With this option, you have the autonomy to choose the property, while the
SMSF facilitator takes care of acquiring the land and building the property.
After completion, the property is then transferred to your SMSF as a single
contract sale.

The Process

Establish your SMSF (You)
20% Deposit + Costs.
Ensure Funds are Available.
Set up the Bare Trust
(The Bare Trust is the property holding trust within your SMSF).

Select Property (You)
Submit ‘Latitude Property’ Expression of Interest.
Pay $990 EOI Admin Fee.

SMSF Facilitator, Engagement (You)
Pre-Approval (Letter of Eligibility).
Client Enters Unconditional Contract with SMSF Facilitator.
The client Pays 20% Deposit to the SMSF Facilitator.

Property Purchase (SMSF- Facilitator)
SMSF Facilitator pays Land/Build deposit and settles on the land.

Constructions Start (Builder)
Normal build process proceeds.

Construction (Lock up stage) You
Client finances away from the SMSF facilitator ready for handover.

Handover (SMSF & SMSF Facilitator)
The SMSF Facilitator pays the final payment to the builder.
A single contract is provided to the SMSF.
The client’s external financier pays the final amount to the SMSF Facilitator.
The SMSF’s Bare Trust takes ownership of the property.
The building warranty is transferred to the SMSF.

Possession (SMSF)
Your SMSF takes possession of the property.

 

The Workflow

SMSF Single Contract Purchase Summary, SMSF Single Contract Purchase Summary

 

The Funding Summary  (Case Study)

SMSF House & Land Purchase $895,000 

Stage 1 - Land Settlement & Construction

SMSF Deposit 20%:

Lenders Fee:

Valuation Fee:

Total Deposit:

$179,000

$83,250

$3,450

$265,700 (Due on land settlement)

Stage 2: Handover – Post Construction

Stamp Duty:

Legals:

Title:

Bank Fee:

Total

$33,500

$2,500

$358

$1,550

$37,908 (Due on Handover, SMSF takes Possession)

Aus Investment Properties Will manage the whole process for you!

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SQM Research is an investment research house that specialises in providing accurate research and data to financial institutions, investment professionals and investors.

Aus investment Properties has partnered with SQM Research to provide data across our site to assist investors in making an informed decision.

Capital Growth 12 months, measures the increase in a property’s value over the previous 12 months, indicating how much the investment has appreciated in that timeframe.

Capital Growth 10-year annualised, reflects the average annual increase in a property’s value over the last decade, smoothing out short-term fluctuations to show long-term appreciation trends.

Vacancy Rate, indicates the percentage of properties that are currently unoccupied in that postcode, It’s a key indicator for investors to assess the rental demand.

SMSF Property Investing, when investing inside your SMSF there are some restrictions on how you can purchase investment properties. We use the following information to help navigate the SMSF investment property options.

This property is a single-contract property suitable for an SMSF.

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