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SMSF Property Investors
Get The Right Help Because We Understand SMSFs

As investors using our own SMSF and working with lenders and accountants who understanding SMSF. We know how important it is to make sure loans and property purchasing and investing through a SMSF is done the right way.

  • How much can borrow in a SMSF
  • Refinancing to lower SMSF loan repayments
  • Property investing in a SMSF
  • Loans for SMSF property purchasing
  • Commercial and residential properties
  • SMSF set up and structuring

If you’re currently managing your own self-managed superfund. Or it may be an investment and wealth building strategy you explore in the future. This is just brief introduction for the basic information related to buying property in a SMSF. If this is a strategy your considering now or in the future, we can help direct you with what you’re options are and if you need accounting and structing assistance to make sure this is the right strategy for you and is done correctly.

Acquiring property in a Self-Managed Super Fund, (SMSF) has a number of great benefits. However, it’s important to follow the rules governing the management of a SMSF carefully.


Firstly let’s quickly look at the benefits of buying and holding properties in a SMSF.

  • It puts you the manager of your own SMSF in the driver’s seat of your own investments and asset growth to support you in retirement.
  • A SMSF comes with benefits the Government has put in place to motivate Australia’s to build their own retirement wealth and reduce Government Funded Pensions.
  • Benefits include paying a Lower Capital Gains Tax (CGT) percentage.
  • You can grow your retirement savings faster.
  • Funds contributed to a SMSF helps to reduce taxable income, therefore contributions to the ATO.
  • As you can just take money and property out of a SMSF, it’s a wonderful vehicle that secures the holding of assets giving time to appreciate in value.
  • Managing your own SMSF teaches you discipline your skills as an investor.
  • Has a number of leverage strategies that can be used to help grow wealth.


If you’re new to managing your own SMSF or it’s a consideration now or in the future. It’s important that you follow the rules and guidelines around managing your own SMSF.

  • Firstly! The money and assets held in your SMSF is not yours to spend or take out, as you please. YET!
  • Doing this can bring hefty fines and time spent fixing these issues created.
  • The SMSF is an entity to itself, which you could see as a trusted person you give your money and assets to.
  • This trusted person holds the money and property and investments for you. Working together to help manage it, responsibility following the investment guidelines relevant to your SMSF when this person / entity is created.
  • Then at the legal SMSF age allowed for you to access funds from your SMSF for living costs and lifestyle, in retirement, is the time you can use your money you’ve accumulated.
  • The rule of thumb is that a SMSF should only be considered when you have $200,000 or more to start using your SMSF as a retirement, wealth building strategy.
  • With one reason being, the returns achieved from your investments in the SMSF are higher than the costs associated with managing your SMSF.
  • However, each person’s specific situations differ, which is why it’s critically important you work with an expert in setting up your SMSF correctly.

For a property to buy within your SMSF, the property must comply, which include:

  • – Meet the ‘sole purpose test’ of solely providing retirement benefits to fund members
  • – Not be acquired from a related party of a member
  • – Not be lived in by a fund member or any fund members’ related parties
  • – Not be rented by a fund member or any fund members’ related parties
  • – SMSF purchasing a commercial premises, can be leased to a fund member for their business. However, it must be leased at the market rate and follow specific rules.


Getting a loan to approved to buy your properties in your SMSF come with very strict conditions.

As the banks term this form of lending, A Limited Recourse Borrowing Arrangement.

What this means is you can only purchase a single asset with a limited recourse borrowing arrangement.

  • Which are means for approved, residential or commercial property, only
  • The loan repayments must come from the SMSF
  • The SMSF must have sufficient liquidity or cash flow to meet the loan repayments
  • No alterations or changes can be made to the property until the SMSF property loan is paid out.
  • Establishing a loan to purchase a property must be the right strategy for the related parties to the SMSF
  • Loan structure can come with higher costs than other property loans.
  • The loan documents and contract must be set up correctly as you can’t unwind the arrangement.
  • To inexperienced investor, having to sell the property, potentially causing substantial losses to the SMSF.
  • Offsetting tax losses from the property against your taxable income outside the SMSF is not allowed.

As you would already know if you managed your own SMSF, it can be very rewarding being able to manage the growth of your own wealth and investments. However, as you would now be more informed. It’s important to know if establishing and buying property in a SMSF is right for you and your current and future retirement wealth building plans.

If we can provide you an support and direction with helping you manage your current SMSF to maximise its potential or to discuss if a strategy you would benefit from applying, reach out and we can introduce you to licenses SMSF experts.



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