Buying Investment Property with Superannuation
Take control of your retirement with strategic SMSF property investing.
Using your superannuation to buy investment property is a growing strategy among Australians seeking to build wealth for retirement. With the right structure—particularly through a Self-Managed Super Fund (SMSF)—you can invest in residential or commercial property while enjoying tax advantages and long-term growth potential.
Can You Buy an Investment Property with Super?
Yes, you can—but only through an SMSF.
Retail and industry super funds don’t allow direct property purchases. With an SMSF, you manage your super and can buy residential or commercial property, provided it complies with ATO regulations.
Key ATO Rules:
- Property must meet the sole purpose test: benefit your retirement only.
- It cannot be lived in or rented by you or your family.
- Transactions must be at arm’s length (market value).
What Is Superannuation and How Does It Work?
Superannuation, or “super,” is a long-term savings system designed to fund your retirement. Employers contribute a percentage of your salary into a super fund, which is typically invested in shares, bonds, and other assets.
But with a Self-Managed Super Fund (SMSF), you can take direct control and invest in alternative assets like property—offering greater flexibility and potential rewards.
Setting Up an SMSF for Property Investment
To begin, you’ll need to:
- Establish your SMSF with up to 6 members.
- Create a trust deed and appoint trustees.
- Register with the ATO and open a dedicated SMSF bank account.
- Develop a compliant investment strategy focused on diversification, risk, and liquidity.
- Identify a suitable property, ensuring it meets all legal criteria.
- Secure SMSF finance, if borrowing, through an LRBA.
Complete the purchase through the SMSF structure.
What Types of Property Can a SMSF Buy?
| Property Type | Rules & Use |
|---|---|
| Residential | Must be bought from an unrelated party. Cannot be used by fund members or relatives. |
| Commercial | Can be leased to your own business at market rates. |
Benefits of Buying Property with Super
| Key Benefits of SMSF Property Investment |
|---|
| Greater control over investment strategy |
| Long-term capital growth potential |
| Tax-efficient structure (15% tax rate, 0% in pension phase) |
| Option to lease commercial property to your own business |
What Returns Can You Expect
| SMSF Property Tax Benefits & Considerations |
|---|
| 15% tax on rental income (0% in pension phase) |
| 10% capital gains tax if held >12 months (0% in pension phase) |
| ⚠️ Always remember, property markets fluctuate so SMSF compliance is essential to avoid ATO penalties. |
Your Next Step
Discover if buying property with super is right for you
What We Offer
Discover a handpicked portfolio of SMSF-approved properties, strategically selected to maximise long-term returns. With full flexibility in your build and investment strategy, you’ll find the ideal property to match your super balance, compliance needs, and retirement goals.
Helping You With Wise Property Investments
We have a proven track record of helping Australians build wealth through property investment using their superannuation. Our results reflect a dominant position in the SMSF property market and a deep commitment to strategic, compliant outcomes for our clients.
SMSF Property Portfolio
A curated selection of residential and commercial properties acquired through Self-Managed Super Funds, showcasing the scale and sophistication of our investment strategies.
ATO-Compliant Transactions
From setup to settlement, we’ve facilitated high-value purchases aligned with SMSF regulations—consistently delivering strong capital growth and rental yields.
Trusted By SMSF Investors Nationwide
Our clients include professionals, business owners, and high-net-worth individuals who trust us to maximise their super’s potential through property.
Get in touch with our SMSF Agents
Frequently Asked Questions
Can you buy an investment property with superannuation?
Yes—but only via an SMSF. You must follow strict ATO guidelines.
How much super do I need to buy property?
We recommend starting with at least $200,000 in combined super to make the strategy viable after fees.
Can my SMSF borrow money to buy property?
Yes, through an LRBA, but you’ll need a substantial deposit and a compliant structure.
Can I live in the property?
No. SMSF property must serve the sole purpose of retirement benefits and cannot be used by fund members or relatives.
Is it worth buying property through super?
For many, yes. It combines long-term capital growth, rental income, and tax benefits—but it’s complex. Get professional advice before proceeding.