What is SMSF Property Investing?
An SMSF allows you to invest directly in property using your superannuation.
This may include:
- Residential investment properties
- Commercial properties
- Business premises (leased to your own business)
Unlike traditional super funds, you have direct ownership and control, enabling a more tailored investment strategy aligned to your goals.
What is a Limited Recourse Borrowing Arrangement (LRBA)?
An LRBA allows your SMSF to borrow funds to acquire a property, subject to strict regulatory requirements.
Key features include:
- The loan is secured only against the property being purchased
- Other SMSF assets are protected (limited recourse)
- The property is held in a separate holding (bare) trust
- Rental income and contributions are used to service the loan
This structure allows your SMSF to acquire higher-value assets sooner and build long-term wealth within a tax-effective environment.
Why Consider SMSF Property & Borrowing?
Accelerate Wealth Creation
Leverage allows your super to enter the property market earlier, giving your investment more time to grow.
Control Your Investment Strategy
Choose the asset, location, and structure that aligns with your long-term objectives.
Tax-Effective Environment
- Concessional tax rates on rental income
- Potential capital gains tax concessions
- Potential for tax-free income in retirement phase
Diversification
Property can provide a stable, income-generating asset within your broader portfolio.
Owning Your Business Premises Through Your SMSF
For business owners, one of the most powerful SMSF strategies is purchasing your commercial premises within your super and leasing it back to your business.
This creates a unique opportunity to build wealth while strengthening your business position.
Key Benefits
Build Long-Term Wealth in Super
Instead of paying rent to a landlord, your business pays rent into your SMSF—
helping grow your retirement savings over time.
Asset Protection & Separation
Owning the property within your SMSF separates it from your trading business, providing an additional layer of protection.
Stable, Predictable Income Stream
Commercial leases typically provide consistent rental income into your super fund.
Control Over Your Business Premises
You gain long-term security over your location—no risk of lease termination by a third-party landlord.
Tax-Effective Strategy
- Rent paid by the business is generally tax deductible
- Rental income in the SMSF is taxed at concessional rates
- Potential tax-free income in retirement phase
Succession & Exit Planning
Owning your premises in super can form part of a broader business succession and retirement strategy, allowing flexibility when transitioning or exiting the business.
Key Considerations
SMSF property and borrowing is highly regulated and not suitable for everyone.
Important factors include:
- Strict lending and compliance requirements
- Ongoing loan servicing obligations
- Liquidity and cash flow management within the fund
- Costs associated with setup, lending, and ongoing administration
- Restrictions on property use and related party transactions
Getting the structure right from the outset is critical.
Our Structured Approach
At Wealth Plus Solutions, we provide an end-to-end, compliant and strategic approach:
- Strategy & Suitability Assessment
We assess whether SMSF property and borrowing aligns with your financial position, goals, and risk profile.
- SMSF & Structure Setup
We establish the correct structure, including:
- SMSF with corporate trustee
- Bare trust (holding trust)
- Compliance framework
- Lending Strategy & Finance
Through Wealth Plus Lending, we source and structure competitive LRBA finance solutions tailored to your circumstances.
- Property Strategy & Acquisition
We guide you on:
- Investment strategy
- Asset selection considerations
- Long-term portfolio alignment
- Ongoing Advice & Compliance
We ensure your SMSF remains compliant while continuously optimising your strategy as your circumstances evolve.
Is This Strategy Right for You?
SMSF property and LRBA strategies may suit you if you:
- Have sufficient super balance and contribution capacity
- Want to invest in property within a tax-effective structure
- Are a business owner looking to own your premises
- Are seeking greater control over your retirement assets
- Understand and accept the responsibilities and risks involved
Integrated Advice. Smarter Outcomes.
With financial planning and lending expertise under one roof, we deliver a fully integrated strategy—ensuring your structure, finance, and investment approach work seamlessly together.
Take Control of Your Super Strategy
Book a strategy session today to explore how SMSF property and borrowing could support your long-term wealth and business goals.
