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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.
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.
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).
Borrowing must follow strict Limited Recourse Borrowing Arrangement (LRBA) rules.
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 an 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. |
SMSF Property Loans: What You Need to Know
SMSFs can borrow using a Limited Recourse Borrowing Arrangement (LRBA)—but it must be carefully structured. The property is held in a bare trust until the loan is repaid.
Typical loan requirements:
- 30–40% deposit
- Cash buffer for expenses and vacancies
- Strict compliance with borrowing caps
Benefits of Buying Property with Super
- 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?
An SMSF property can generate rental income and capital growth, with tax benefits like:
- 15% tax on rental income (0% in pension phase)
- 10% capital gains tax if held >12 months (0% in pension phase)
But remember, property markets fluctuate—and SMSF compliance is essential to avoid ATO penalties.
Is Buying Investment Property with Superannuation Right for You?
This strategy isn’t for everyone. It requires:
- Long-term planning
- SMSF setup and compliance
- Financial and legal guidance
But if you’re looking to take real control of your super and invest in tangible, income-producing assets, an SMSF property could be the smartest move you make.
Your Next Step
Speak with a licensed SMSF specialist to explore your options. We’ll guide you through setup, compliance, and property finance—so you can invest with confidence.
🟢 Book a Free Strategy Call
Discover if buying property with super is right for you
Frequently Asked Questions
Can I 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.
Related Topics
- SMSF Setup Checklist
- SMSF Property Loans Explained
- How Much Super Do I Need?
- Benefits of Commercial Property in SMSFs
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 INVESTMENTS
Our firm has 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.
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