Using your Self Managed Super Fund to invest in property is a powerful strategy — but the lending rules are strict. We know the lenders, the policies, and the structure required to get it done.
SMSF property loans use a Limited Recourse Borrowing Arrangement (LRBA). The rules are strict but the tax benefits can be significant.
LRBA
Limited Recourse Structure
The property is held in a bare trust until the loan is repaid. The lender's recourse is limited to that asset only — your other SMSF assets are protected.
15%
Tax on rental income
Rental income inside an SMSF is taxed at just 15% during the accumulation phase — significantly lower than personal income tax rates.
10%
CGT discount in pension phase
Capital gains tax can drop to 10% during accumulation or zero in pension phase — a significant advantage for long-term property investors.
Common questions
Frequently asked questions
Yes — through a Limited Recourse Borrowing Arrangement. The property is held in a bare trust and the lender's recourse is limited to that asset only.
Most lenders require a minimum 20-30% deposit for SMSF property loans. LMI is generally not available for SMSF lending.
Yes, but you and related parties cannot live in or rent the property. Commercial property has different rules — business owners can lease commercial property from their SMSF.
The SMSF lending panel is smaller than standard residential lending. We work with specialist lenders who understand SMSF structures and can assess your fund properly.
We strongly recommend it. We handle the lending — your financial adviser handles the compliance and strategy. We work closely with Harpinder Chipra at Your Wellth for SMSF clients.