How to Invest in Property with Your Super

smsf property


Love it? Share It!

smsf property

How to Invest in Property with Your Super

In the dynamic landscape of financial planning, Australians are increasingly exploring alternative avenues to grow their wealth. One such avenue that has gained popularity is utilizing a Self-Managed Super Fund (SMSF) to invest in real estate. In this blog post, we’ll delve into the intricacies of using an SMSF to purchase an investment property in Australia in 2024, exploring the benefits, considerations, and steps involved in this strategic financial move.


Understanding Self-Managed Super Funds:


A Self-Managed Super Fund is a type of superannuation fund that gives individuals greater control over their retirement savings. SMSFs offer a unique opportunity for Australians to take a hands-on approach to their investments, including the possibility of diversifying into real estate. As of 2024, the regulatory environment surrounding SMSFs continues to evolve, providing investors with increased flexibility.


Benefits of Using an SMSF for Property Investment:


Tax Advantages:

  • Utilizing an SMSF for property investment in Australia comes with potential tax advantages. Capital gains within the fund are taxed at a concessional rate, and if the property is held for more than 12 months, capital gains tax may be reduced by 33.3%.



  • Real estate investment adds a layer of diversification to an SMSF portfolio. By including property alongside traditional assets like stocks and bonds, investors can spread risk and potentially enhance returns.


Rental Income:

  • Investment properties can generate rental income, providing a regular cash flow stream for the SMSF. This income can be used to cover expenses related to the property or reinvested within the fund.



  • SMSFs are allowed to borrow money to invest in assets, including property. This allows investors to magnify their buying power, potentially increasing the overall return on investment.

Considerations When Using an SMSF for Property Investment:


Compliance and Regulation:

  • It’s crucial to navigate the complex regulatory framework surrounding SMSFs. Investors need to ensure their fund complies with the Superannuation Industry (Supervision) Act 1993 and other relevant regulations.


Risk Management:

  • Property investment carries inherent risks, including market fluctuations and unexpected expenses. SMSF trustees must have a robust risk management strategy to safeguard the fund and its members’ retirement savings.



  • Real estate is typically less liquid than other asset classes. Trustees should consider the impact of tying up a significant portion of the fund’s assets in property and plan for potential liquidity needs.

Steps to Purchase an Investment Property Using an SMSF:


Establish an SMSF:

  • If you don’t already have one, set up an SMSF. Seek professional advice to ensure compliance with regulations and understand the responsibilities of being a trustee.


Develop an Investment Strategy:

  • Formulate a clear investment strategy that aligns with the fund’s objectives, risk tolerance, and member profiles.


Borrowing Arrangements:

  • If planning to leverage, work with financial institutions that offer SMSF loans. Ensure compliance with the Superannuation Industry (Supervision) Act 1993 and associated regulations.


Property Selection:

  • Conduct thorough research to identify a suitable investment property. Consider factors such as location, potential rental income, and long-term growth prospects.


Purchase and Management:

  • Execute the property purchase through the SMSF, adhering to all legal and regulatory requirements. Manage the property within the fund, ensuring ongoing compliance and addressing maintenance and tenancy matters.

Want to see how you can explore this more? Book a free call with our team here to find out more.

Scroll to Top