Alex and Daisy
Alex and Daisy wanted to purchase a warehouse studio for Alex’s dance school.
Background.
Alex and Daisy are both self-employed – Alex runs a dance school and Daisy contracts as a caterer. Alex wanted to buy his own studio to run his business from so that his business could buy the couple some equity for their future.
They received financial advice from their accountant to purchase a warehouse studio inside a self-managed super fund (SMSF). This way, the dance school could rent the premises off the SMSF, and the rent would cover the repayments on the loan for the property.
The one barrier the couple had was that their tax returns were not current, but the cash flow of the business was very strong. So even though they could afford the loan, they could not provide evidence of their income to a lender.
Plan.
SGB Finance researched lenders in the SMSF space that suited the clients and found a lender who would lend 70% of the purchase price with an income declaration from their accountant. The interest rate was reasonable, and given the advantages the structure would provide for the future wealth of the couple, they decided to proceed.
Outcome.
The couple located a suitable warehouse space for the business, and struck a deal with the seller. SGB Finance arranged an application with the lender, and it was approved.
In short order the property was settled, and Alex did a refit to suit the school.
Alex now runs his dance school from the warehouse studio and the couple is building equity in the property through rent payments from Alex’s business. Alex reports business is going better than ever!
