From BS:
AMP Bank advised mortgage brokers it would no longer lend for properties less than six months old, including off-the-plan developments. It also lowered its maximum loan-to-valuation ratio from 80 to 70 per cent, and stipulated a minimum SMSF fund size of $200,000 for DIY superannuation borrowers.
…These stricter loan conditions come after NAB quietly suspended loans on residential property to SMSFs last year (it still lends on commercial property to SMSFs), saying merely it was a neat solution to reduce growth in property loans to investors, and thereby appease the regulatory crackdown on property loans to that particular group.
…Figures for DIY activity also show that SMSF property holdings is one of the few areas of growth against the backdrop of sliding share market valuations and low cash rates. But if you intend to join the ranks of SMSFs leveraged to residential property, be prepared to stump up a deposit in the order of 30 to 40 per cent and to buy an existing property to satisfy new and more stringent lender criteria.
Would-be borrowers must also be aware that with the government set to review its decision to allow the practice in three years, and the lenders themselves increasingly choosing not to issue this type of loan, the days of SMSF residential property loans may well be numbered.
Last time I looked, Miranda Maxwell was no “doomsayer”.
