Yes, Your Super Can Buy Property
Discover how thousands of Australians are using their Self Managed Super Fund to invest in property, and how you can too.
It surprises many Australians to learn they can purchase property using the funds in their superannuation & money borrowed from a bank.
With a Self Managed Super Fund (SMSF) you can use your super to invest in property.
Is Property Investment with Super Worth It?
Talk with an SMSF Advisor & with just one phone call, discover what's possible for your super.
Two Ways to Buy Property with Your Super.
Your super can do more than sit in shares – it can own real property and help grow your retirement savings.
There are two ways to buy property using an SMSF, and each suits different goals and balances.
Buy the property outright using your super balance.
Your SMSF pays for the property in full.
Benefits:
> Simple structure
> No lender involved
> Immediate rental income to your SMSF
Use a SMSF property loan to buy.
Your SMSF uses a deposit from your super & borrows the rest using an LRBA.
Benefits:
> Buy sooner
> Access higher-value property
> Rent and growth stay inside your super
Each approach offers a different path to growth, our SMSF specialists can help you choose the structure that fits your strategy – ensuring it’s compliant, efficient, and built for long-term results.
Learn more with Rogerson Kenny, trusted SMSF accountants & licensed advisers, Melbourne based, servicing clients Australia wide.
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Investing in property through superannuation
Understanding your options
Using your SMSF to own your business premises
Imagine your business – a consultancy, clinic or warehouse – paying rent to your own super fund instead of an external landlord.
Your SMSF owns the commercial property, & your business is the tenant, paying market rent back into your fund.
That rent boosts your retirement savings while your business builds equity in a property it knows & uses every day.
Using your SMSF to own a residential investment property
Your SMSF can also own a residential investment property, rented out to unrelated tenants at market rates.
The key rule is simple – you, your family or anyone related to you can’t live in it or use it personally.
It stays purely as an investment, generating rental income & long-term growth inside your super.
Speak to a SMSF Specialist
Compare your options & learn what’s possible for you.
Must have Guide to Setting up a Self-Managed Super Fund
Thinking About Starting an SMSF? Download Your Free Starter Guide
If you’re considering a Self Managed Super Fund (SMSF), this free guide from Rogerson Kenny Business Accountants is the perfect place to start. Designed for beginners, it explains what an SMSF is, how it works, the setup process and the key rules and responsibilities involved.
Inside you’ll find:
- A clear overview of SMSF structures & requirements
- Investment rules, options, and strategy tips
- Pros and cons to help you decide if an SMSF is right for you
- Step-by-step guidance on setting up your fund
- Expert insights from trusted, independent accountants
Download the SMSF Starter Kit now and gain the confidence to make informed decisions about your financial future.
FREQUENTLY ASKED QUESTIONS
Your expert SMSF Accountants & Business Advisors are here to guide your through the benefits of SMSF set up for business owners:
Can I buy a property with my super?
Yes. You can buy a property with your super by setting up a Self-Managed Super Fund (SMSF). Your SMSF can purchase residential or commercial property if the rules are followed. Most buyers either pay cash from their super balance or use an SMSF property loan. A specialist can help you choose the right structure.
How do I buy an investment property using my SMSF?
To buy an investment property with your super, you first need to set up an SMSF. The fund then buys the property using either cash inside the fund or an SMSF loan (LRBA). The property must be held only for investment and managed at arm’s length.
Can my SMSF borrow money to buy a property?
To buy an investment property with your super, you first need to set up an SMSF. The fund then buys the property using either cash inside the fund or an SMSF loan (LRBA). The property must be held only for investment and managed at arm’s length.
How much can my SMSF borrow for a property?
Most lenders allow SMSFs to borrow up to 70 percent for residential property and 65–70 percent for commercial. The borrowing amount depends on your super balance, rental income and fund liquidity.
What deposit does my SMSF need to buy a property?
SMSFs typically need a 20–30 percent deposit, plus enough extra cash to cover stamp duty, legal costs and required liquidity. Your exact deposit depends on the lender and property type.
Can I live in a residential property owned by my SMSF?
No. You, your family or any related party cannot live in, stay in, rent or use a residential property owned by your SMSF. It must be rented to unrelated tenants and remain an investment only.
Can my SMSF buy my home or a property I already own?
No. SMSFs cannot buy residential property from members or related parties.
Exception: Your SMSF can buy business real property (commercial premises) from you or your business at market value.
Can my business rent a commercial property owned by my SMSF?
Yes. Your business can lease commercial property from your SMSF if rent is paid at market value. This strategy keeps rent payments inside your super while your business operates from a stable premises.
What can my SMSF do with a residential investment property?
Your SMSF can rent it to unrelated tenants, receive rent and benefit from long-term capital growth. You cannot use the property personally or allow related parties to use it.
What are the costs of buying property through an SMSF?
Costs include stamp duty, legal fees, inspections and loan costs if borrowing. SMSFs also have accounting, audit and compliance fees. Costs are similar to buying property outside super, with added SMSF structure requirements.
Is buying property with an SMSF more complicated?
It can be, but with the right setup and guidance it’s straightforward. Once the SMSF structure is in place, owning property works similarly to any investment property – but within a tax-effective environment.
Can my SMSF renovate or improve a property?
You can repair or maintain an SMSF property. Improvements are allowed if they don’t change the property’s character, but you cannot use borrowed funds for improvements. Repairs and maintenance are permitted under an LRBA.
Can my SMSF buy multiple investment properties?
Yes. An SMSF can own one or multiple investment properties if the fund has enough balance or borrowing capacity. Your investment strategy must support the decision.
Is buying property with super a good strategy?
For many Australians, SMSF property is a strong long-term strategy because it combines rental income, potential capital growth and tax benefits. Suitability depends on your balance, timeframe and goals. A quick consultation can confirm if it fits your plan.
What’s the first step to buying property with my super?
Your first step is checking your SMSF balance, contribution capacity and borrowing eligibility. Speaking with an SMSF specialist will show you whether buying a property through your super is achievable.
Start Your SMSF Journey Today
Simply submit your details and our team will be in touch soon. Alternatively contact Sarah Davie, Associate Director and SMSF Advisor now:
E. sarah.davie@rogersonkenny.com.au
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