How Teachers Can Refinance an Existing SMSF Property Loan
TL;DR SMSF refinancing is specialist lending with a smaller lender pool, commercial credit assessment, and rates 0.5% to 1.5% above standard investment loans. The right benchmark is current SMSF pricing, not the broader market. Equity release generally isn’t available. Borrowed funds are restricted to acquisition, repairs, and maintenance, not property improvements or unrelated investments. Budget […]
SMSF Borrowing Rules Teachers Must Know Before Buying Property
TL;DR SMSFs can only borrow through a Limited Recourse Borrowing Arrangement (LRBA), which requires precise structuring, including a separate bare trust, before any contract is signed. Seven rules derail most deals: single acquirable asset, no personal or related-party use, arm’s length terms on everything, improvement restrictions, no related-party residential acquisitions, genuine limited recourse, and the […]
Residential vs Commercial SMSF Property Loans: Which Suits Teachers Best?
TL;DR Residential is the stronger default for most teachers: higher LVR (70-80%), simpler compliance, broader buyer pool, and shorter vacancies. Commercial requires 30-35% deposits, higher rates, and a smaller lender pool. Commercial only genuinely wins when you have a qualifying related business that can lease the premises under business real property rules, or a super […]
SMSF Loan Setup Costs for Teachers: What to Budget For
TL;DR Establishment costs alone run $8,000 to $15,000 before a loan application, covering SMSF setup, corporate trustees, bare trust, legal review and any required financial advice. Transaction costs at purchase typically add 5% to 7% of property value, and SMSF loans require 20% to 30% deposits with no LMI pathway, plus a 10% to 15% […]