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Buy a residential investment property through your SMSF

We work with 12 specialist lenders to find the right loan for your fund — residential houses, apartments and townhouses across Australia.

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SMSF Property Finance Residential SMSF Loans

Access SMSF Investment Property Loan options from lenders across Australia

What you can buy

Your SMSF can purchase houses, apartments and townhouses as investment properties. The property must be held purely for investment; members and their relatives cannot live in it. Beyond that, you have wide scope to invest in whatever fits your fund’s strategy andcash flow.

What influences your loan

LVR for residential SMSF loans typically runs between 70% and 80%, with some lenders going to 90% including insurance fees. Your rate will depend on your fund’s financial statements, credit history and property type. We assess all this upfront so there are no surprises at approval.

Fixed or variable?

Both are available. Fixed rates give payment certainty for the loan term. Variable rates offer flexibility — useful if your fund’s income fluctuates or you want the ability to make extra repayments. We’ll walk you through the trade-offs for your specific situation.

Ready to chat to our expert team?

Book a chat with a specialist SMSF Mortgage Broker today.

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Not sure where to start?

Book a chat with a specialist in purchasing investment property with your SMSF today

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Rules for Purchasing Residential Investment Property in an SMSF

  1. Sole Purpose Test

  • Primary Use: The property must be purchased solely to provide retirement benefits to SMSF members. It cannot be used for personal purposes or benefit outside this scope.

  • No Personal Use: SMSF members or their relatives cannot live in the property or use it as a holiday home.

  1. Acquisition Restrictions
  • Related Party Transactions: An SMSF cannot purchase residential property from related parties, including fund members or their relatives, unless the property is acquired at market value and under specific exceptions allowed by law.
  1. Leasing and Rental

  • Arm's Length Transactions: Rental agreements must be conducted at market rates, and the property must be leased to unrelated parties.

  • No Lease to Members: Members or their relatives cannot rent the property, ensuring compliance with the sole purpose test.

  1. Borrowing Rules

  • Limited Recourse Borrowing Arrangement (LRBA): Residential properties can be purchased using an LRBA, but the lender’s recourse must be limited to the property itself. Despite this, lenders will often make the trustees of the SMSF be guarantor on their SMSF loan which is something our team will discuss with you during the SMSF finance process.

  • Separate Trust Structure: The property must be held in a separate custodian or bare trust to ensure compliance with borrowing rules.

  1. Compliance and Management

  • Investment Strategy: The property purchase must align with the SMSF’s documented investment strategy, considering risk, return, and diversification.

  • Annual Audits: The SMSF must conduct annual audits, ensuring that the property investment complies with ATO regulations.

  1. Tax Considerations

  • Capital Gains Tax (CGT): Concessional tax rates may apply to capital gains on property sold after a certain period, especially if the fund is in the pension phase.

  • Income Tax: Rental income is taxed at the concessional rate applicable to SMSFs.

Getting a SMSF Investment Property Loan

Initial Consult

Have a chat with one of our specialist SMSF Mortgage Brokers who will understand your situation and talk you through the next steps.

Fact Find

We'll work with you to understand a bit more about your situation (including your financials, assets etc.) to make sure you will qualify for a SMSF Investment Property Loan.

SMSF Investment Property Loan Approval

We'll work to find an appropriate SMSF lender for your loan, taking into account your situation and loan type. We'll then handle the paperwork to get your SMSF Investment Property Loan approved.

Book Appointment
SMSF Property Finance Meeting

Our Latest Reviews

Philippine Finet

Oscar was very helpful throughout the entire process. He explained everything clearly and made it easy to understand. I highly recommend his services.

Monisha D'Souza

Sam made the entire home loan process smooth and stress-free from start to finish. He was incredibly responsive, always quick to answer my questions, and went above and beyond to ensure everything was handled efficiently. His guidance and support made a big difference, and I felt confident throughout the journey. I highly recommend Sam to anyone looking for a reliable and knowledgeable finance broker.

Austin Watson

Oscar was of great importance in securing my homeloan form my investment property. His patience with my many questions and his assistance when I was out of country try to make sure I had all the documentation completed was amazing. Without his help I don’t think I would be in the position I am with my property.

Harriet Swinburn

I had a very positive experience working with Oscar. He found a great option for me that suited my requirements. Oscar was knowledgeable, responsive and made the whole process straightforward.

Tony H

I had a great experience working with Sam Wetzler from Macleay Financial for my recent property purchase. Sam was extremely responsive, clear, and proactive throughout the entire process. From loan structuring to final settlement, everything was handled efficiently and without unnecessary stress. He made complex steps easy to understand and was always available to answer questions or follow up when needed. His ability to move quickly and keep things on track, especially under tight timelines leading up to settlement. Overall, a very smooth experience. I would definitely recommend Sam to anyone looking for a reliable and knowledgeable mortgage broker.

Michael Oates

Oscar worked with us for ~4 months throughout the whole process of getting pre-approval (prior to kicking off our property search) through to settlement. He was very helpful!

We work with specialised SMSF lenders across Australia

Frequently Asked Questions

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.

What is an SMSF loan?

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.


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02 8114 2225

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SMSF Property Finance is a subsidiary of Macleay Financial Pty Ltd (ABN 84653555198). Credit Representative #534891 is authorised under Australian Credit License #389087

Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.

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