What happened?
Back in 2014 one of our clients wanted to buy an investment property and was advised by a financial advisor to buy in a Self Managed Super Fund (SMSF). Said client went about setting up a SMSF and purchased the property off the plan. The property was due to be completed and settled in 2017. At the time the client was assured that their finance would be arranged closer to settlement date, and that they would lean on their business to support the loans. Unfortunately in the time between purchase and settlement their business suffered two poor trading years and made significant losses. As a result the client was not able to prove that they could support the debt and getting finance for the property had become basically impossible.
The Result…
In the face of an impossible situation Rubiix’s Matthew Muscat went to a number of different banks directly, utilising his own connections and was told “it can’t be done – especially in a SMSF”. Being a residential property was also complicating the matter further. At this point there was a real possibility that the client could lose their deposit of around $60K.
Matthew then got in contact with a mortgage broker from his network. After significant amount of work with the mortgage broker, the broker and Matthew were able to find a solution. The solution, in this case was, a financial product which allowed borrowing via a low doc loan
After a long journey the result was positive for the client. The application for finance was approved. They were able to settle on the property within the intended structure and the property is now earning rent for our client’s retirement.
If you have questions about financial matters, property investments, superannuation or taxation make sure to speak to us for essential advice when you need it. Contact us here.