Single Contract Properties

If you are looking to purchase a brand new property inside your Self Managed Super Fund you’re going to need completed stock (like a townhouse) or a single contract house and land package

We can help you in accessing this type of stock all up and down the eastern seaboard of Australia, so feel free to get in touch if this is something you are on the hunt for. 

While we don’t provide advice around Self Managed Super Funds we can help you to find the type of property you want, can have our finance team assist with the borrowing requirements, and can even put you in touch with a financial planner who can help you with all things superannuation related. 

On the lending front there are a few things that you will want to consider and fully understand when deciding if this is the type of investment for you:

There are

Limited lenders in the space

Over the past few years many lenders have walked away from SMSF related products for a whole host of reasons. 

This means  competition is not fantastic and borrowers are generally hit with a rate that are more in line with a commercial loans than a residential mortgage, so expect higher rates!

Single Contract Properties for SMSF's

You will generally

Need a 30% Deposit

SMSF properties are purchased in a bare trust, and the type of borrowing structure that you take on for this type of purchase is known as a limited recourse loan. 

This means the lender can’t go after your other SMSF assets or you personally if something were to happen to this investment. 

As a result they want you to have more skin in the game, so that if something goes wrong and the property has gone down in value, that they won’t be taking a loss. 

This is the general reason for the 30% deposit requirement.

Valuations

can be hard to come to terms with.

In the recent past bank valuers have been very hard on SMSF related purchases. 

Once again, given the lack of competition out there in this space as it currently stands, lenders can apply tighter criteria to valuations, can chose not to fund particular purchases, or may be willing to lend only a portion of the deemed valuation provided by the valuer.

 This could see you needing to contribute more of your funds than previously anticipated, which can be very frustrating.

Finance Meeting

Join hundreds of satisfied customers

If you think that a single contract property is right for you please click on the button below to book a time for our team to give you a call. We will be able to guide you towards something that is within your requirements, in an area with strong fundamentals and without the bias spin that you might get from a financial planner who sells property.