SMSF Loans

Buy Residential Property Through Your SMSF

Investing in residential property through your Self-Managed Super Fund (SMSF) can be a profitable way to secure your future.
Strict rules govern SMSF investing, however. We recommend consulting a specialist advisor before you go ahead, to ensure you are aware of all the implications.

The Ground Rules

You are able to buy any kind of residential property through your SMSF, including houses, apartments, units or townhouses.
The maximum borrowing within an SMSF is normally 80% of the property value. You are permitted to maintain the property, but not to improve it.
It’s important to research the full cost of establishing and maintaining your SMSF, along with the fees and charges required to purchase the investment property.

Your property should:

  • Meet the ‘sole purpose’ test (sole provision of retirement benefits to fund members)
  • Not be purchased from any member or any related entity.
  • Not be lived in by any member of the fund, or their related parties.
  • Not be rented by any member of the fund, or their related parties.

Buying Commercial Property

There are definite pros and cons to weigh up here. If your SMSF buys commercial premises, they can be leased back to a fund member for business use. However, the lease must follow market rates and specific rules.


  • Frees up capital for the business owner.
  • Unlocks super to do more for them.
  • Protects the property against insolvency.
  • High level of asset protection within super.


  • You cannot skip a rent cycle.
  • No sub-letting is allowed.
  • Tax losses cannot be offset against personal income tax.
  • The property asset cannot be used as collateral against future business/personal loan.

Allow More Time

When purchasing a property via SMSF, we highly recommend you set a longer than normal finance approval period. This allows for any procedural delays.

Let’s Talk

Need help getting the right home loan?

Suite 222, Nexus Building, 4 Columbia Court,
Norwest NSW 2153 Australia

PO BOX 6488, Norwest 2153 NSW