Clock ticking on SMSF property timetable
New SMSFs seeking to buy and settle a property by Christmas are starting to run out of time, according to NSW-based mortgage broker SMSF Loans.
Craig Morgan, director of SMSF Loans, said that the real deadline for commencing an SMSF property purchase with the expectation of settling by Christmas was probably around 10 October.
"No one wants a property transaction to drag over Christmas and we believe that a conservative date like the 10th of October is also a practical guide for new SMSF trustees," he said. "While we have access to lenders who can comfortably settle in a shorter timeframe, it is better to look at the best outcome possible across the whole range of lenders in this sector."
Morgan said that established SMSFs could start later, but early November would be the latest that they could commence property acquisition with a Christmas deadline in mind.
"The changes to SMSF borrowing rules to allow improvements to properties will definitely lead to more SMSF lending in 2012," added Morgan. "SMSF lending was increasing anyway as accountants and advisers became more comfortable with clients buying property inside an SMSF."
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