Buy investment property through your SMSF
Your SMSF can purchase investment property using a Limited Recourse Borrowing Arrangement. Finance Craft coordinates the loan process in conjunction with your Accountant or Financial Planner, at no cost to you.
Property Investment Inside Your Super Fund
SMSFs can purchase investment property using a Limited Recourse Borrowing Arrangement (LRBA), giving trustees direct control over a tangible asset inside their super fund. The structure allows your SMSF to borrow to acquire a property it may not be able to purchase outright, with the lender's recourse limited to that specific asset.
SMSF lending is more complex than standard residential finance and requires specialist lenders who understand the compliance requirements. Finance Craft coordinates the loan in conjunction with your Accountant or Financial Planner, making the process as straightforward as possible for you.
Four advantages of buying property through your SMSF
Direct Property Control
Unlike retail super funds that invest in listed property trusts, an SMSF lets you own the actual land and building. You make the investment decisions, choose the property, and control the asset, which suits investors who want an active hand in their retirement strategy.
Leverage Your Super Balance
Through an LRBA, your SMSF can borrow to purchase a property it couldn't afford outright. This lets you leverage your accumulated super balance to acquire a higher-value asset, building long-term wealth within your super fund.
Estate Planning Flexibility
SMSF assets pass to beneficiaries according to your binding death benefit nominations and SMSF deed, giving you more control over distribution than many standard super products. This can be a valuable part of broader estate planning for high-net-worth families.
Diversify Your Retirement Portfolio
Most retail super funds are heavily weighted in shares and managed funds. Adding direct property through your SMSF gives your retirement savings exposure to a different asset class, reducing concentration risk and broadening the foundation of your long-term portfolio.
Considering SMSF property? Let's assess your financial position and borrowing capacity.
Book a Free ConsultationSMSF lending from assessment to settlement
SMSF Assessment
We review your SMSF's structure, fund balance, and member contribution history. We work in conjunction with your Accountant or Financial Planner to confirm eligibility and identify the right lending approach for your goals.
Specialist Lender Match
The major banks have largely exited the SMSF lending market, leaving a range of specialist non-bank lenders and credit unions with dedicated SMSF products. We know which lenders understand the compliance requirements and can move efficiently through the process.
Pre-Approval and Property
We prepare and lodge your pre-approval application with the required documentation such as SMSF trust deed, company registration, income documents for concessional contributions, and more. Once pre-approved, you can search for the right investment property with confidence.
Application and Settlement
Once you've found a property, we lodge the formal application and manage all lender paperwork. Your solicitor establishes the required bare trust structure. We coordinate closely with your legal team, Accountant, and the lender through to settlement.
Ready to explore SMSF property investment? Shane can walk you through the numbers and requirements.
Talk to ShaneSMSF lending requirements at a glance
SMSF lending is more specialist than standard residential finance. Serviceability is assessed across member contributions and expected rental income rather than personal salary. Lenders also assess liquidity inside the fund post-settlement. We coordinate the loan process in conjunction with your Accountant or Financial Planner.
Fund Structure and Compliance
Your fund must be structured correctly with a valid trust deed that permits borrowing. Many lenders require at least one to two years of financial statements, though some specialist lenders will consider newly established funds with a sufficient opening balance.
Deposit Requirement
Most SMSF lenders require a 20–40% deposit depending on the lender and property type. LVRs up to 80% are available from some specialist lenders. A $1M property typically requires $200K–$400K from SMSF funds, plus additional cash for stamp duty, legal costs, and a post-settlement liquidity buffer.
Bare Trust Structure
The property must be purchased through a bare trust (a separate legal entity). Your SMSF holds the beneficial interest; the bare trustee holds legal title. Your solicitor establishes this, typically costing $1,000–$3,000.
Serviceability Assessment
Lenders assess serviceability using member contributions (employer and voluntary) and projected rental income from the property. Unlike standard lending, your personal salary is not directly assessed, though lenders do review member contribution capacity and credit history.
Investment Purpose Only
The property must generate rental income and cannot be used personally by any fund member or related party. Residential properties cannot be leased to related parties. Commercial property may be leased to a related business at market rent under specific conditions.
Longer Timeline
SMSF pre-approval typically takes 5–7 business days after all documentation is submitted. Full approval and settlement typically takes around 6 weeks in total, longer than standard residential lending due to the additional specialist lender assessment involved.
SMSF Lending FAQs
Yes. SMSFs can borrow to purchase residential or commercial investment property using a Limited Recourse Borrowing Arrangement (LRBA). Under an LRBA, the lender's recourse is limited to the specific property purchased — your other SMSF assets are protected if the loan defaults. The structure requires a specialist lender and a bare trust, which your solicitor establishes. Not every SMSF qualifies: you'll need a compliant fund structure with a trust deed that permits borrowing, sufficient balance for the deposit, and the ability to service the loan from contributions and rental income.
A bare trust is a separate legal entity established specifically to hold the property on behalf of your SMSF. The bare trustee appears on the property title, but your SMSF holds the beneficial interest (the real economic ownership). This structure is required by law under the LRBA framework. The property must be held separately from the SMSF itself until the loan is fully repaid, at which point title transfers directly to the SMSF. Your solicitor establishes the bare trust, typically costing $1,000–$3,000. We work closely with your legal advisor and Accountant to ensure the loan documentation aligns with the trust structure before settlement.
Most SMSF lenders require a 20–40% deposit depending on the lender and property type, with LVRs up to 80% available from select specialist lenders. On a $1M property, your SMSF would typically need $200K–$400K in available funds for the deposit, plus additional cash for stamp duty, legal costs, and a post-settlement liquidity buffer. The deposit must come from SMSF assets, as personal funds can only be contributed via normal superannuation contribution rules.
Generally no, for residential property. Superannuation rules restrict SMSF property from being leased to related parties — fund members, their relatives, or associated entities. The main exception is commercial property, which may be leased to a related business at market rent under specific conditions. We recommend discussing your specific situation with your SMSF Accountant or Financial Planner before proceeding, as the rules around related-party transactions are complex.
SMSF lending takes longer than standard residential finance due to the additional documentation and specialist lender assessment involved. Pre-approval typically takes 5–7 business days after all documentation is submitted, including your trust deed, financial statements, and contribution history. Full approval after identifying a property takes a further 1–2 weeks, with settlement typically completing within 6 weeks in total. We streamline the process by preparing documentation comprehensively upfront and coordinating closely with lenders, your Accountant, and your legal team throughout.
Explore SMSF property investment
Book a free consultation with Shane to assess your SMSF's eligibility, borrowing capacity, and the right property strategy for your retirement goals.