Can You Buy Property Through an SMSF?
⚠️ General information only — PremiumRea holds no Australian Financial Services Licence. We are not licensed to advise on superannuation, SMSFs or any financial product, and nothing on this page is a recommendation to establish an SMSF, to borrow inside one, or to buy property through one. It takes no account of your objectives, financial situation or needs. Before acting, speak to a licensed financial adviser and a registered tax agent. Start with ASIC's Moneysmart guidance on SMSFs, which is independent and free.
Yes — as a matter of law, a Self-Managed Super Fund can hold direct residential investment property, and it can borrow to acquire one through a Limited Recourse Borrowing Arrangement (LRBA) under s 67A of the Superannuation Industry (Supervision) Act 1993. The property is held in a separate holding (bare) trust until the loan is repaid.
Costs commonly quoted in the market (indicative figures observed 2025–2026 from accountants and lenders we deal with; they are not our prices, they move, and they are not a quote):
- Establishment: around $1,500–$2,000 one-off
- Annual accounting and audit: around $3,000–$3,500 combined
- SMSF loan pricing sits above comparable personal investment-loan pricing; the margin varies by lender and by month
On minimum balances: there is no legislated minimum SMSF balance. ASIC and the ATO have both published concerns about funds established with low balances, on cost-efficiency grounds — see ASIC Moneysmart. Any specific dollar threshold you see quoted (including by us, previously) is someone's rule of thumb, not a rule. Whether your balance makes a fund viable is a question for a licensed adviser.
On tax: superannuation tax treatment differs between accumulation and pension phase. We are not a registered tax agent and will not set out the numbers. Ask one.
What You CANNOT Do with SMSF Property
SMSF property rules are strict, and the consequences of a breach are set by the ATO, not by us. This is the part of the topic that bears directly on a buyer's agent brief, because it determines what kind of property the fund can even look at.
Cannot do while loan exists:
- Build a granny flat or any new structure
- Subdivide the land
- Perform major renovations (structural changes)
- Change the property's character
Can do:
- Cosmetic repairs (painting, carpet replacement, minor fixes)
- Maintain the property to rentable standard
- Claim depreciation and holding costs
What this means for the property brief: because construction and structural renovation are off the table while an LRBA is on foot, a fund buying direct property is generally looking at move-in-ready stock. That is a property constraint imposed by the borrowing rules, not a recommendation to buy in any particular place or at any particular price.
SMSF vs Personal Name vs Family Trust — how they differ (factual comparison only)
We are not licensed to advise on SMSFs or superannuation. PremiumRea holds no Australian Financial Services Licence. Nothing on this page is a recommendation to establish, contribute to, borrow inside, or purchase through an SMSF, and nothing here takes account of your objectives, financial situation or needs. Which ownership structure suits you is a question for a licensed financial adviser and a registered tax agent. This section sets out how the three structures differ as a matter of fact, so that you can have a better-informed conversation with those advisers.
Differences that bear on the property itself — the part we can speak to as a buyer's agent:
| | SMSF (with an LRBA on foot) | Personal name | Family trust | |---|---|---|---| | Build a granny flat / structural renovation while borrowed | Not permitted while the LRBA is on foot (ATO SMSFR 2012/1 — cannot change the character of the acquirable asset) | Permitted | Permitted | | Subdivide the land while borrowed | Not permitted while the LRBA is on foot | Permitted | Permitted | | Cosmetic repairs and maintenance | Permitted | Permitted | Permitted | | Victorian land tax | Fund is assessed in its own right | Individual threshold applies (see our Land Tax Victoria guide) | Trust surcharge scale applies from a lower threshold |
Differences that are outside our lane — CGT treatment in accumulation vs pension phase, negative gearing effectiveness at 15% versus your marginal rate, contribution caps, in-house asset rules, SIS Act compliance and the consequences of a breach. These are financial-product and taxation-law questions. Ask a licensed adviser and a registered tax agent. We will not answer them, and you should be wary of any buyer's agent who does.
Sources: ATO — SMSFs and property · ASIC Moneysmart — SMSFs · SRO Victoria — land tax rates