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Can you buy a property with a self-managed super fund?

According to, there are 53% of SMSFs established for over 10 years and 16% have been established for three years or less. This seems Australian are interested in property investment, especially in SMSF (Self Managed Super Fund). The main reason behind the popularity of investing in SMSF is the possibility of borrowing money to purchase property directly.

However, there are few factors to consider before stepping into buying a property through Self Managed Super Fund. Before getting deep into the matter, let’s brush up with some basis.

Why Invest in Self-Managed Super Fund (SMSF)?

Australian experts believe SMSF gives flexibility to the investors. Under SMSF, investors can opt for either residential property or commercial property.

Buying residential property through SMSF does not allow you to live in or to enjoy, you, as a trustee of the property and any of your relatives should be placed as trustees. In simple words, you cannot live in the property purchased through SMSF.

Buying Commercial property through SMSF is the most popular form of investment preferred by many Australians. In fact, many Aussies especially small business owners opt for outsourcing SMSF to buy commercial property and rent them to the current market value.

Pros and Cons of Buying Property through SMSF


• It allows combined investing as a couple or family
• Investing in SMSF can be Tax effective
• Best way to buy/invest in property even if you don’t have funds on your own
• It is the most effective method to diversify the investment options


• SMSF property would be a big lumpy illiquid asset for investors
• Fees for buying a property through SMSF would cost you a lot
• Benefits of the purchase property through SMSF can’t be enjoyed in personal

Is It Worth To Buy Property Through SMSF?

In general, buying a property through SMSF would be beneficial for business owners and for employees, who have a few more years to serve. However, for people, who are about to retire buying a property through SMSF won’t be a great idea.


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