Self-Managed Super Fund Property Investment


With a Self-Managed Super Fund (SMSF), you have a greater range and choice of investments than with a managed industry fund. This includes being able to purchase investment property by meeting certain conditions. 

At High Income Property, we understand that running an SMSF requires knowledge, expertise and time. That’s why we offer you help in setting up and managing your SMSF to buy an investment property. Our specialist team can provide investors with assistance in a variety of ways:

  • Connect you with the specialists who can advise on the setting up an SMSF
  • Work with industry specialists to ensure that you have the appropriate insurance and auditing in place
  • Help you to secure a home loan that meets limited recourse borrowing arrangements (LRBA)
  • Get the best investment loan at the most competitive rate
  • Find a suitable property to invest using super-fund

Looking to Invest in the Property as an Asset Using Super? Talk to us.

    Buying Property with SMSF

    What is an SMSF-Compliant Property?

    To tap into your super savings to buy a property, you’ll need to purchase an SMSF-compliant property. With any SMSF asset, the intent behind the investment has to be to support the investment objectives of the SMSF. So, when it comes to taking out an SMSF loan and investing in property, you’ll need to make sure the property complies with the criteria set out by the Australian Taxation Office (ATO).

    An SMSF-compliant property has to meet the ‘sole purpose test’. As long as a property meets the following standards, you can buy it through your SMSF:

    • The property can only be purchased for the sole purpose of providing members (which may be you or you and up to five other trustees) retirement benefits.
    • You can’t acquire it from a related party or another member of the SMSF.
    • None of the fund members or members’ relatives can live in the property.
    • You also cannot rent the property to a fund member or any related parties.

    If it’s a commercial property, the rules are a little different. You can purchase your own business premises, which would make it possible to pay rent to your own SMSF at the market rate.

    What are the benefits of buying an SMSF Property?

    When you buy an SMSF-compliant property with your superannuation savings, you may be able to save a lot of money through tax incentives. With SMSF properties, rental income is taxed at 15%. Once you hold the property for over a year, the entity will receive further capital gains concessions.

    Once you’re retired, your tax obligation goes down to 0% if you are getting pension from the fund! This translates into huge profit potential and a higher rental yield.

    You can also invest the income you get from your property investment into another property, helping to build your wealth even more.

    Using your SMSF can be an effective vehicle to enter the property market. A lot of people don’t have enough for a down payment in their personal savings account, but you may be able to use your SMSF to qualify for a loan.

    Setting up an SMSF with family members (Mum and Dad or Husband & Wife) is another classic strategy of pooling individual balances together.

    Should you add an SMSF Property to your portfolio?

    Ultimately, what’s right for you depends on your situation and your financial goals. Talk to the specialists, we can assist you to find out if buying an SMSF-compliant property can help you achieve your goals.

    DISCLAIMER: The information on this page is for general interest and is not intended as advice. For advice and planning, consult an experienced financial planner and specialist. We can introduce you with our panel of accredited specialists to assist you. We specialise in researching and locating the right property for your needs.

    Talk to High Income Property on Self-Managed Super Fund Property

    Why wait — find out how you can use your super fund to purchase the investment property you’ve always wanted. Book a FREE online or face-to-face consultation with High Income Property and let us show you how to build wealth through strategic property investment.