Here are the Process of Buying a Commercial Property:
The first step is to get preapproval or some idea that you can buy what you are looking to buy. If it’s Inside Super, you don’t necessarily need your SMSF set up – you could be looking but not have an SMSF. Whilst Outside Super is more simple than a home loan to get pre-approval for a commercial property. If you’ve found a property, set up an SMSF and a bare trust, a trust, or whichever structure you are using.
The bare trust is the lending vehicle, and the lead time is one to two months to be safe. Make sure when you look to buy something, you structure your set up to be able to sign the contract in the right name. If you don’t currently have an SMSF, the lead time on getting your existing super could take days or maybe one to two weeks.
Industry super funds are getting a lot better, but there’s still ones who make it difficult to take your super away because the sooner you do that, the less fees they get.
The setup of the SMSF and the paperwork itself wouldn’t take long for you to sign it, but what takes time is trying to get your money out of the industry super fund. And if you do make that decision, you want to pull that out, that industry super fund needs to be comfortable that the money doesn’t go to your secret bank account that you just go to Vegas with.
They want to make sure that it goes to a compliant super fund and it’s in the right name. There are checks and balances that they have to do before they release that. If you find a property in a hot property market, you’ve got to take this into account. You might lose out on property just because you haven’t got your ducks in a row. So, if it’s going to take some time and you are ready to do all this stuff, get in touch with your accountant first and make sure that it gets done as soon as possible.
Watch the full webinar, ‘How to buy your office, warehouse or clinic using your super fund’ at https://learning.benwalker.com/courses/howtobuyyouroffice
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