EPISODE 215 - AXIS LENDING: SMSF NDIS Lending

Following on from Episode 210, Paul Grant from Axis Lending returns, where previously discussed was all things NDIS finance , Paul once again sits down with Minh in our Brisbane office to talk about the process of obtaining finance for an NDIS investment property if planning on using one's SMSF (Self Managed Super Fund).

Building a property within your SMSF is a far more complex process as, by law, an SMSF cannot take on a construction contract and 2-part H&L contract. Minh and Paul go through the step by step process in setting up and implementing  compliant strategy which is approved as per the SIS Act, issued by the ATO.

Paul explains the process to get around this legality and the additional costs involved, when engaging a third party service that will 'wrap up' a two part contract H&L package, for NDIS, into a one part contract 'completed' SDA home.

Such "Bridging Costs" for the SMSF would cover:
- deposit
- application fee (to third party)
- legal fees 1
- legal fees 2
- legal fees 3
- land tax
- valuation fees
- finance application fees
- 12 months interest payments in advance
- stamp duty 1
- stamp duty 2
- lenders mortgage insurance (LMI)
- other purchase costs
- other finance costs
- valuation shortfall (if applicable)

Beforehand, an investor needs to do the following before beginning an SMSF for SDA:
- seek independent financial advice (financial planner)
- setup SMSF (accountant)
- setup BARE TRUST (accountant)
- seek legal advice (solicitor)
- sell down funds from current super
- rollover funds into cash bank account
- engage a third party to convert a 2 part contract, into a 1 part contract (if applicable)
- seek finance pre-approval (NDIS lender)

Why invest in SDA property via SMSF?

• SDA Property offers a great investment option for people approaching retirement who are wanting to avoid investments such as the stock market, or underperforming retail and industry funds.
• Self Managed Super Fund and NDIS property investment rules permit Australians to invest in NDIS property as part of a diversified asset allocation strategy.
• Using SMSF to buy SDA property is a ideal way to invest in residential property achieving very high rental yields with an ethical investment.

Website - https://www.axislending.com.au
Contact - info@axislending.com.au

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DISCLAIMER:
Information contained in this podcast is general in nature only. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information and should seek independent and professional legal, finance, financial and taxation advice for your circumstances.

For any podcast related queries or suggestions, please contact our podcast team via podcast@ndis.property

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