Buying property with super

Learn how buying property with super works in Australia through an SMSF: eligibility, borrowing rules, costs, liquidity and the questions to ask.

Can you buy property with your super?

You can buy investment property with super only through a self-managed super fund that meets the sole purpose test. The property cannot be lived in or rented by members or relatives, and borrowing must use a limited recourse arrangement. Set-up and running costs are significant, so Sydney, NSW and Australian buyers should get licensed advice first.

Most assume it is a shortcut to a home

It is not. SMSF residential property is purely an investment for retirement, and members cannot use it personally.

Costs and balances

Audit, accounting, lending and legal costs can erode returns on smaller balances. ASIC has warned about low-balance SMSFs.

Concentration and liquidity

One property can make up most of the fund, leaving little cash for pensions or vacancies.

Frequently asked questions

Can my SMSF buy my business premises?

Business real property can be leased to a related party at market rent.

Can I use super for a home deposit?

Only through the First Home Super Saver Scheme for voluntary contributions.

Who can advise me?

A licensed financial adviser; accountants have limited SMSF advice scope.