How do I buy property in my SMSF?
Your SMSF can buy investment property using a Limited Recourse Borrowing Arrangement (LRBA). The property is held in a bare trust until the loan is repaid. The key steps are: confirm your borrowing capacity with a specialist SMSF broker, find the right lender, set up the bare trust structure, and settle. We handle the finance side — you find the property.
What LVR can an SMSF get?
Typically 70–80% for residential SMSF loans, with some lenders going to 90% including insurance fees. Commercial SMSF loans are generally lower — around 60–70% LVR.
What is a limited recourse borrowing arrangement (LRBA)?
An LRBA allows your SMSF to borrow to buy a property while ring-fencing your other super assets. If the loan defaults, the lender can only claim the purchased property — not the rest of your fund. The property is held in a separate bare trust (usually with a corporate trustee) until the loan is paid off.
What are the restrictions on SMSF property?
The property must meet the sole purpose test (retirement benefit only), cannot be lived in or used by members or their relatives, and must be held in a bare trust structure. Residential property cannot be purchased from a related party.
Can rental income be used to service an SMSF loan?
Yes. Rental income from the investment property flows into the SMSF and can be used to cover loan repayments, alongside member contributions and other fund income.
What documents are needed for an SMSF loan?
A certified SMSF Trust Deed, Custodian (Bare) Trust Deed, SMSF financial statements, recent bank statements, and the property contract of sale. We’ll give you a full checklist when you get in touch.
Can I borrow money in my SMSF to buy property?
Yes. Your SMSF can borrow to buy property through a Limited Recourse Borrowing Arrangement (LRBA). The loan must comply with the Superannuation Industry (Supervision) Act 1993, and only the purchased property is held as security — your other SMSF assets are protected.
How do I set up an SMSF to buy property?
Start by confirming your borrowing capacity with a specialist SMSF broker. If the numbers work, an SMSF adviser handles the fund setup. We work alongside SMSF accountants and advisers so the whole process is seamless for you.
An SMSF loan is a loan structured specifically for a Self-Managed Super Fund to buy investment property — residential or commercial. It must be set up as an LRBA. SMSF loans have stricter lending criteria than standard investment loans and are only available through specialist lenders, not the big four banks.
Are SMSF loan rates higher than regular investment loans?
Yes, typically. The LRBA structure means lenders carry more risk, so rates are higher than standard investment loans. But rates vary significantly across lenders — using a specialist SMSF broker rather than going direct often results in a better outcome.
