Guidance for existing SMSF property owners
A checklist for trustees who already hold SMSF property: valuations, leases, loan terms, liquidity and how to assess any rule change affecting your fund.
What should existing SMSF property owners review?
Each year, trustees should confirm a market valuation, check the lease is at market rent and on arm's length terms, review loan terms and test whether the fund has enough cash for expenses and pensions. Owners in Sydney, NSW and Australia should also read any new rule carefully for grandfathering before changing an existing arrangement.
Annual compliance checks
Market valuations, signed leases, rent actually received and insurance are common audit focus points.
Liquidity review
Map the next five years of pensions, tax and loan repayments against expected rent and contributions.
If rules change
Existing arrangements are sometimes protected. Refinancing or restructuring can lose that protection.
Frequently asked questions
How often must property be valued?
At market value each year for reporting; formal valuations are needed when values change materially.
Can I refinance an SMSF loan?
Yes, but check how refinancing interacts with borrowing rules.
What if a member retires?
Plan how pensions will be funded from rent and cash.