Can I Use My SMSF to Buy Property in Australia?
- SMSF
- Sep 10, 2025
- 2 min read
Can I Use My SMSF to Buy Property in Australia?
Quick Answer
Yes, you can. The ATO allows SMSFs to buy investment property in Australia, but there are strict rules. It’s not a loophole to buy yourself a family home; it’s a long-term investment strategy for retirement.
Let’s Break It Down
When people first hear this, the reaction is usually: “Wait, I can use my super to buy a house?” The answer is yes but with clear boundaries.
Residential property: You (or your kids, or your relatives) can’t live in it. It must be purely for investment.
Commercial property: This is where things get interesting. If you run a business, your SMSF can actually own the premises and rent it back to you, as long as it’s at market rates.
Borrowing: If your super balance isn’t enough, an SMSF can borrow under what’s called a Limited Recourse Borrowing Arrangement (LRBA). The property sits in a special “bare trust” until the loan is repaid.
Why People Like It
Rental income and capital gains are taxed inside super, often at just 15% (or even 0% in retirement phase).
You get to build wealth in an asset you understand, not just in shares or managed funds.
Why It’s Not for Everyone
Set-up and ongoing costs are higher than buying property in your own name.
Banks are more cautious, lower loan-to-value ratios, stricter conditions.
You have to stick to the rules, no shortcuts, or the ATO will come knocking.
The Bottom Line
Yes, you can buy property with your SMSF, and many Australians are doing it. But it’s not a quick hack. It works best for people with a solid super balance (around $200k+) and a long-term retirement mindset. If that sounds like you, it’s worth exploring.
