Buying Property Through SMSF
How it works, what’s involved, and what to understand before setting one up
Using super to buy property is an option some buyers consider as part of a long-term retirement strategy.
Because buying property through an SMSF involves strict rules, specific structures, and long-term commitments, it’s important to understand how it works before setting one up. Once established, an SMSF structure can be difficult and costly to change.
What Does it Mean to Buy Property Through
an SMSF?
An SMSF (Self-Managed Super Fund) allows you to manage how your superannuation is invested, within rules set by superannuation law.
One option available to some SMSFs is purchasing a property and holding it inside the fund as a long-term investment for retirement.
This is not a tax shortcut or a way to access super early.
Buying property through super is a structural decision that affects how your super is set up, funded, and managed over time. If the structure is established incorrectly, it can lead to ongoing compliance issues that are difficult to fix later.
How Property is Typically Purchased Through Super
In most cases, property purchased through an SMSF is held under a limited recourse borrowing arrangement (LRBA).
Under this structure:
The property is held in a separate holding trust
The SMSF makes loan repayments and receives rental income
Once any borrowing is fully repaid, ownership can be transferred to the SMSF
The rules around LRBAs are strict, and the structure must be set up correctly before the property is purchased.
What’s Involved in Buying Property Through an SMSF
Buying property through super typically involves:
Planning to hold the property long term, rather than buying and selling frequently.
Having sufficient super balances to cover the purchase and ongoing costs.
Working within stricter lending conditions and lower flexibility than personal lending.
Ensuring the property and transaction meet superannuation rules at every stage.
Because of these requirements, buying property through an SMSF is generally considered part of a long-term retirement structure, not a short-term strategy.
When Buying Property Through an SMSF Often Doesn’t Work
Buying property through SMSF often doesn’t work where:
Very high leverage is required.
Frequent buying and selling is planned.
Super balances are still relatively low.
The property is intended for personal use or short-term outcomes.
Superannuation law is strict.
If an SMSF is set up incorrectly or used outside the rules, rectifying issues later can be expensive, time-consuming, and limited by what the law allows.
Our Role as Accountants
Real Accounting is a registered tax agent and SMSF specialist accounting practice.
Our role is to:
Explain how buying property through
SMSF works
Explain what’s involved in setting up
SMSF
Set up the SMSF structure correctly if you decide to proceed
Manage ongoing SMSF accounting, reporting, and compliance
We do not provide financial advice or investment recommendations.
Deciding whether buying property through super is right for you is your decision. You may choose to speak with a licensed financial adviser if you want personal financial advice.
If You Decide To Move Forward
If you decide to set up SMSF to buy property, we can help with:
Setting up the SMSF structure correctly from the start
Preparing and managing the required documentation
Meeting ongoing SMSF accounting, reporting and compliance obligations
Our focus is on getting the structure right and keeping the fund compliant over time.
Want to Understand the Structure in More Detail?
If you’re considering using super to buy property and want to better understand how it works, what’s involved, and the ongoing responsibilities, you can book an SMSF Information Call with our accounting team.
This session is informational only and does not include financial advice or investment recommendations.
Registered Tax Agent · SMSF Specialists · Accounting
Partner to the Homeowner Platform
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Our role within the Homeowner platform
Real Accounting is the chosen accounting partner for the Homeowner platform for SMSF setups related to property purchases.
We work alongside Homeowner to support buyers who want clear, factual information about using super to buy property, and to handle SMSF setup and ongoing compliance if they decide to proceed.
Our work focuses specifically on SMSFs used for property purchases. This ensures Homeowner buyers are supported by an accounting team that understands the structure, documentation, and compliance requirements involved.
While we work closely with Homeowner, our role remains strictly within accounting and compliance. We do not provide financial advice or recommendations.
Disclaimer
Real Accounting is not a financial planning firm and does not provide financial advice.
All information provided is factual in nature and based on publicly available guidance, including information published by the ATO. This information is intended to help you understand structural options when purchasing property, not to recommend what you should do.
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