Self-Managed Super Funds (SMSFs) can be a powerful tool for building long-term wealth, and yes, you can use your SMSF to invest in property. But it comes with strict rules and unique lending requirements.

What is SMSF Lending?

SMSF lending allows your super fund to borrow money to purchase an investment property, typically residential or commercial under a limited recourse borrowing arrangement (LRBA). This means the lender’s rights are limited to the asset itself, protecting other assets within the fund.

Key SMSF Lending Rules

- The property must be for investment purposes only, no living in it or renting to family members.

- The loan must be structured under a Limited Recourse Borrowing Arrangement (LRBA).

- Your SMSF must have enough balance and cash flow to service the loan and cover ongoing costs.

- Strict compliance with ATO and superannuation laws is essential.

Benefits of SMSF Lending

- Grow your retirement savings through property investment.

- Rental income and capital gains stay within the super environment, often taxed at a lower rate.

- Greater control over your super investments.

Risks and Considerations

- SMSF property loans usually require a larger deposit (20–30%).

- Lending criteria is more complex and restrictive than standard home loans.

- All costs must be paid from the SMSF and not your personal funds.

- Poor compliance can result in heavy penalties.

How We Can Help

At Personalised Finance, we guide you through the ins and outs of SMSF lending. From lender selection and loan structure to working with your accountant and financial planner, we ensure your fund is set up to succeed safely and compliantly.

Thinking of Buying Property Through Your SMSF?

📞 Book a consultation with Hendy today. We'll help you explore whether SMSF lending is the right strategy for your retirement goals.