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SMSF Property

Expert Property SMSF Advice: Maximizing Your Investments for Retirement. Commercial, Residential, Investments, Lending and More

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Can you purchase property in a SMSF?

Yes, it is possible to purchase property in a self-managed superannuation fund (SMSF). In fact, property is a popular investment option for SMSFs. SMSFs can invest in residential or commercial property, and the property can be either directly owned or held through a trust. 

However, purchasing property in an SMSF comes with strict rules and regulations that must be followed to avoid any potential penalties. For example, the property must be purchased solely for investment purposes and cannot be used by any members of the SMSF or their family. 

If you are considering investing in property through your SMSF, it is important to seek professional advice from a qualified SMSF advisor who can guide you through the process and ensure that all rules and regulations are followed. Contact us to learn more about how we can assist you with SMSF property purchases and investments.

How to purchase property in a SMSF

Purchasing property in a self managed superannuation fund (SMSF) can be a great way to invest for your retirement. However, it's important to understand the rules and regulations around SMSF property purchases.


Firstly, your SMSF must have enough funds to cover the purchase price and associated costs. Additionally, the property must meet the sole purpose test, meaning it is purchased for investment purposes only and not for personal use.


You can purchase either residential or commercial property in your SMSF, but there are different rules for each. For example, if you purchase commercial property, you can lease it to your own business, but there are restrictions on leasing it to related parties. It's important to seek professional advice to ensure you understand all the requirements and avoid any potential penalties.

SMSF and Property Loans

When it comes to purchasing property in a self-managed superannuation fund (SMSF), borrowing money through a limited recourse borrowing arrangement (LRBA) is a popular option. To do this, there are certain requirements that need to be met. 


Firstly, a deposit of at least 20-35% of the property purchase price is generally required. This is to ensure that the SMSF has enough equity in the property to secure the loan. 

In terms of documents required, the SMSF will need to establish a separate trust to hold the property and execute the LRBA. The lender will also require a registered mortgage over the property as security for the loan. 

It's important to consider the potential risks associated with borrowing to invest in property, such as interest rate changes and property market fluctuations, as well as the ongoing costs of maintaining the property within the SMSF. 

The structure of the SMSF should also be carefully considered, as there are specific rules and regulations governing SMSF property ownership and borrowing. Seeking professional advice from a qualified SMSF specialist is strongly recommended to ensure compliance with these rules and to maximize the benefits of SMSF property investment. 

Overall, purchasing property in an SMSF through a LRBA can be a great way to diversify your investment portfolio and potentially achieve long-term financial goals. However, it's important to carefully consider all the factors and seek professional advice before making any decisions. We can help direct you to trusted third party mortgage brokers to guide you in the loan process.

SMSF Commercial Property

Investing in commercial property through a self-managed superannuation fund (SMSF) can have its advantages and disadvantages. On one hand, it can provide diversification to your portfolio and potentially generate steady income for your fund. On the other hand, there are several factors to consider, such as tax implications, capital gains tax, and restrictions on renting to related parties.

One of the advantages of purchasing commercial property in an SMSF is that rental income received by the fund is taxed at the concessional rate of 15%. Additionally, expenses related to the property, such as interest payments on loans, can also be claimed as tax deductions.

However, it's important to note that there are restrictions on renting to related parties, such as yourself or your business. This means you cannot use the property for personal purposes.

There are also capital gains tax (CGT) implications to consider when selling the property. If the property is held for longer than 12 months, the fund is entitled to a one-third discount on the CGT payable.

When it comes to financing the purchase of commercial property in an SMSF, a deposit of at least 30% is typically required. In addition to the standard loan application documents, the lender may also require additional documentation such as a property valuation, a copy of the SMSF trust deed, and proof of the SMSF's ability to repay the loan.

Overall, investing in commercial property through an SMSF can be a viable option for some investors, but it's important to carefully weigh the pros and cons and seek professional advice before making any decisions.

SMSF Residential Property

Investing in residential property through a self managed superannuation fund (SMSF) can be a viable option for those looking to diversify their portfolio. However, it's important to consider the pros and cons before making any decisions. 


  1. Potential for long-term capital growth

  2. Rental income can provide a steady stream of income for the SMSF

  3. Control over the property, including property management and maintenance decisions

  4. he potential for tax benefits, such as tax deductions for expenses related to the property


  1. High upfront costs, including deposit and legal fees

  2. Ongoing costs such as mortgage repayments, property management fees, and maintenance costs

  3. Risk of property value decreasing or being unable to secure a tenant

  4. Restrictions on personal use of the property by members or related parties of the SMSF

It's important to also consider the tax implications and CGT considerations of investing in residential property through an SMSF. For example, rental income is taxed at the SMSF tax rate of 15%, and capital gains tax may apply when selling the property. 

Overall, investing in residential property through an SMSF can be a sound strategy for some investors, but it's important to consider the risks and seek professional advice before making any decisions.

SMSF Property Development

Investing in property development through a self managed superannuation fund (SMSF) can potentially generate significant returns. However, it is important to carefully consider the pro's and cons, tax implications, CGT considerations, and risks associated with this type of investment.

One of the main advantages of property development in an SMSF is the potential for capital growth and rental income. Additionally, SMSFs may be able to use borrowed funds to invest in property development, which can increase the returns on investment.

On the other hand, property development in an SMSF comes with certain risks. Development costs can be significant, and if the property market experiences a downturn, the investment may lose value. There may also be legal and regulatory hurdles to overcome, as well as potential tax and compliance risks.

It is crucial to seek professional advice before making any decisions about property development in an SMSF. This can help you fully understand the risks and opportunities, as well as navigate the legal and regulatory requirements. Your financial advisor can assist in assessing the tax implications and CGT considerations, ensuring that your investment strategy aligns with your retirement goals and objectives.

Property Appraisals for SMSF

When it comes to managing a self-managed superannuation fund (SMSF) that includes property investments, accurate property valuations and appraisals are crucial. Regular valuations can help ensure that your SMSF investments are being properly managed and that the fund is meeting all regulatory requirements. This can help you make informed decisions about your SMSF property investments, including whether to buy, hold or sell. At our firm, we can assist with property valuations and appraisals, helping you to stay on top of your SMSF investment performance and compliance obligations. Contact us today to learn more. 

Recent News

  • What services do you offer?
    New Wave SMSF financial planners offer a wide range of services to help clients manage their self-managed superannuation funds (SMSFs). Some of the services we offer include: SMSF set-up: An SMSF financial planner can assist clients with the establishment of a new SMSF, including the preparation of trust deeds, appointing trustees, and registering the fund with the Australian Taxation Office (ATO). Investment strategy development: SMSF financial planners can work with clients to develop an investment strategy that is aligned with their financial goals and risk appetite. This includes selecting investment assets, determining asset allocation, and monitoring investment performance. Compliance and administration: SMSF financial planners can help ensure that clients' SMSFs remain compliant with regulatory requirements, including the preparation and lodgement of annual tax returns, financial statements, and other reporting obligations. Retirement planning: SMSF financial planners can help clients plan for their retirement income needs, including determining their retirement goals, estimating retirement expenses, and developing a strategy for drawing down on their SMSF assets. Estate planning: SMSF financial planners can assist clients with estate planning, including the creation of binding death benefit nominations, the establishment of testamentary trusts, and the development of succession plans. Risk management: SMSF financial planners can help clients manage risk within their SMSFs, including insurance needs analysis, the selection of appropriate insurance products, and the development of risk management strategies.It’s a great way to help people navigate your site and can even boost your site’s SEO.
  • Is an SMSF the right choice for me?
    Whether an SMSF is suitable for you depends on various factors such as your financial goals, investment experience, and the time and resources you have available to manage the fund. Our financial planners can help you assess whether an SMSF is the right choice for your individual circumstances. Book in a free 30 Min consult today.
  • What are the investment options available to me in an SMSF?
    SMSFs offer a broad range of investment options, including direct property investments, shares, managed funds, and term deposits. However, trustees need to ensure that their investments are in line with their investment strategy and comply with regulatory requirements. Our Gold Coast SMSF Financial Planners can assist with guiding you towards the right investment strategy
  • How much super is recommended to start an SMSF?
    The amount of money required to start an SMSF will vary depending on your individual circumstances, goals, and investment strategy. While there is no minimum amount required by law to establish an SMSF, most financial experts suggest that you should have at least $200,000 to $500,000 in superannuation savings to make an SMSF cost-effective. Before deciding to start an SMSF, it's recommended to seek professional financial advice to ensure it's the right choice for your individual circumstance
  • What accounting services do you offer?
    New Wave SMSF is a forward thinking accounting firm providing tailored self managed superannuation fund (SMSF) services on the Gold Coast and across Australia. We assist clients with: Accounting, Structuring, SMSF Software, SMSF Setup, Tax, BAS, Compliance, SMSF Bookkeeping and Tax Advice. At New Wave, our mission is to empower, excite and build confidence in SMSF's by providing clarity in their figures.
  • What are the costs involved in setting up an SMSF?
    The costs of setting up an SMSF can vary depending on the complexity of the fund, the number of members, and the services required. Typically, the setup fees can range from $1,000 to $3,000, while ongoing costs can range from $2,000 to $3,000 per year. We can provide you with a fixed fee quote based on the size and complexity of your work.
  • What are the rules and regulations around SMSFs?
    SMSFs are regulated by the Australian Taxation Office (ATO) and must comply with the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations). The rules cover various aspects of SMSF management, including trustee duties, investment restrictions, contribution limits, and reporting requirements.
  • How do I ensure compliance with ATO regulations?
    To ensure compliance with ATO regulations, SMSF trustees need to maintain accurate and up-to-date records, prepare and lodge annual returns, and follow investment restrictions. Engaging an experienced SMSF accountant can help ensure compliance with ATO regulations and provide peace of mind.
  • What are the tax implications of having an SMSF?
    SMSFs enjoy concessional tax treatment, with income earned within the fund taxed at a maximum rate of 15% (or 0% if in pension phase). Additionally, SMSFs may be eligible for capital gains tax (CGT) discounts if assets are held for longer than 12 months. However, there are various tax rules and regulations that SMSF trustees need to be aware of to avoid penalties and fines.
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