Deposit Power can also provide a Deposit Guarantee for Self-Managed Super Funds (SMSF) who are looking to purchase investment property. Due to SMSF regulations, the property in question must be income producing and therefore cannot be under construction or vacant land.
The Deposit Power Deposit Guarantee itself can be issued up to 10% of the purchase price to a maximum deposit amount of $500,000. A term of 6 months or less is standard, however longer terms may be considered on an individual basis (subject to separate acceptance and fee structure).
In regards to the application process, a SMSF specific application will need to be completed and an acceptable Trust Deed will need to be provided confirming the Trust’s ability to borrow and purchase property as part of its investment strategy. In addition to providing evidence of the funds to complete the purchase, at least one beneficiary/member of the trust must also own existing property.