I’ve helped many clients finance property purchases through SMSFs and have also purchased property through my own SMSF. While every situation is different, there are a few common mistakes I regularly see investors make when exploring SMSF lending.

Not every lender plays in the SMSF space
SMSF lending is a niche area. Some lenders don’t offer it at all, while others have very specific requirements around fund balances, deposits and borrowing structures. The lender that suits one SMSF investor may not suit another, which is why understanding your options early can save a lot of time.

The property is only part of the equation
Many investors focus on finding the right property but overlook the structure behind the purchase. Having the right professionals involved early can help ensure the transaction is structured correctly and runs smoothly.

Typically, this includes:

• Financial Planner– to determine whether an SMSF property strategy is appropriate for your circumstances
• Accountant – to assist with SMSF compliance, structuring and tax considerations
• Solicitor – to establish the required legal structures and review contracts
• Finance Specialist– to assess borrowing capacity and navigate lender requirements

Finance approval can take longer than expected
SMSF lending involves additional documentation and compliance requirements, the process is often more involved than a standard investment loan. Getting clarity on your borrowing position before making an offer can put you in a much stronger position when the right property comes along.

Every lender and every SMSF is different. If you’re exploring a property purchase through your SMSF, I’d be happy to discuss the overall process and help you understand your options.

Reach out:
Manuel Alves
Finance Specialist
manuel@pristinefinance.com.au

Disclaimer: The information contained in this article is general in nature and does not constitute financial, legal, taxation or investment advice. Before making any decisions regarding your SMSF, you should seek advice from appropriately qualified professionals.