A specialist lender has launched a new SMSF
product focused on commercial lending.
Thinktank has announced the launch of a new SMSF
commercial loan offering up to 75% LVR and 25 year repayment terms. The loan will be available across all standard commercial property types. Thinktank CEO Jonathan Street said the product would hold significant advantages for business owners.
"Holding commercial property in an SMSF
structure offers business owners undeniably attractive long term advantages under the present tax system. Thinktank’s commercial SMSF
product allows the trustees of the fund to align the life of the loan with the members’ retirement pension phase on a set and forget basis with no ongoing fees or charges. With the current low interest rate environment, market based lease payments back to the fund can see the loan paid off in 10-12 years with surplus income adding to tax effective retirement savings," Street said.
Thinktank co-founder Per Amundsen said the strength of the product was also the company's process efficiency.
"The critical take away for us however as we studied the market, was not necessarily entirely centred on product quality, but was actually just as much on management of the loan process and skills delivery around informed deal execution from start to finish. We continually came across examples where the lender, the solicitor or someone else in the process let the transaction down and caused un-necessary delays, often at significant extra cost to the borrower. We in turn have focussed intensely on getting the entire process clearly established and being able to manage this better than anyone else in the market.”
The product will carry a maximum loan size of $3m, and an interest only period option of five years.