An SMSF (Self-Managed Super Fund) loan is a loan used to purchase a property as an investment to further grow a super fund for retirement. It can be used to purchase residential investment properties; commercial properties; office spaces; warehouses and more.
Frequently Asked Questions
An SMSF (Self-Managed Super Fund) loan is used by a self-managed super fund to purchase an investment property using a Limited Recourse Borrowing Arrangement (LRBA). The property is held in a separate bare trust until the loan is repaid.
Yes — under an LRBA (Limited Recourse Borrowing Arrangement), your SMSF can borrow to purchase a single acquirable asset (e.g. a residential or commercial property). This is subject to the sole purpose test and superannuation law.
An SMSF can purchase residential investment properties, commercial properties, industrial warehouses, and office spaces. The fund cannot purchase a property that a member or related party lives in (residential) or uses (business).
Rental income is taxed at 15% inside an SMSF (vs your marginal tax rate personally). Capital gains tax is reduced to 10% if the property is held for 12+ months, and zero during the pension phase.
An SMSF (Self-Managed Super Fund) loan is used by a self-managed super fund to purchase an investment property using a Limited Recourse Borrowing Arrangement (LRBA). The property is held in a separate bare trust until the loan is repaid.
Yes — this is one of the few related-party transactions allowed under super law. Your SMSF can purchase a commercial property and lease it to your business, provided rent is paid at market rates.
You need: an established SMSF with a compliant deed, a bare trust structure for the property, sufficient super balance, a clear investment strategy, and an SMSF loan approved by a specialist lender. A broker coordinates the finance component.
