A Guide To Buying Property Through SMSF

Investing in property through a Self-Managed Super Fund (SMSF) can be a powerful strategy to build your retirement savings, but it requires careful planning and compliance with strict rules. SMSFs can invest in residential or commercial property either through direct purchase or using a limited recourse borrowing arrangement (LRBA). However, the property must meet the “sole purpose test” — it must be used solely to provide retirement benefits to members.

Residential property purchased through an SMSF cannot be lived in or rented by you or any related party. Commercial property, on the other hand, offers more flexibility and can be leased to related businesses, provided the terms reflect market value.

Trustees are responsible for ensuring the SMSF complies with all legal and tax obligations, including correct property ownership structures, valuations, and rental agreements.

At HelloLedger, we help SMSF trustees stay compliant while maximising the benefits of property investment. Our team provides tailored support and expert SMSF accounting services to keep your fund on track. Read more