Yes, a self-managed super fund can buy property – but only through a specific, strictly regulated structure called a Limited Recourse Borrowing Arrangement (LRBA).
The rules are detailed, the compliance is strict, and the lenders are specialist, because the big banks largely left SMSF lending years ago. Getting it right protects your fund and your retirement savings.
As your Perth broker, The Finance Yogi works with lenders who understand SMSF borrowing and keeps the structure compliant from day one.
Under an LRBA, your SMSF borrows to buy a single property, which is held in a separate bare trust until the loan is repaid. ‘Limited recourse’ means the lender’s claim is limited to that property, protecting the rest of your fund.
The arrangement must satisfy the sole-purpose test – it must be solely to provide retirement benefits – and be conducted at arm’s length. For residential property, no member or related party can live in or rent the home.
Commercial property is more flexible: a business owner can often buy their premises in the SMSF and lease it back to their own business at market rates.
SMSF property investing can be powerful, but compliance is non-negotiable – mistakes can be costly for your fund.
We keep the structure right, work with your accountant and adviser, and match your fund with the few lenders who genuinely understand SMSF lending.
These rules exist to protect your retirement savings and keep the fund compliant with superannuation law.
Thinking about the numbers? Our guide on SMSF loan deposit and costs covers what you need in the fund.
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Your SMSF can buy both, but the rules differ. Residential property must be a genuine arm’s-length investment – no member, relative or related party can live in it or rent it, even at market rent.
Commercial property is more flexible. A business owner can often buy their business premises through the fund and lease it back to their own business, provided it is at market rates and properly documented.
Important: SMSF rules are complex and personal, so always work with a licensed adviser and accountant. We arrange the finance on our SMSF loan broker Perth page.
The major banks largely exited SMSF lending years ago, so today it is mostly specialist and second-tier lenders who offer these loans. That makes expert guidance essential.
These lenders have their own fund-balance, deposit and liquidity requirements, which vary considerably – so matching your fund to the right lender is key to approval.
We know which lenders are active in SMSF lending and what each requires. See the full service on our SMSF loan broker Perth page.
The process starts with your fund and its structure. We confirm your fund can support the loan, coordinate the bare trust setup with your accountant, and match you to an SMSF lender.
Then we arrange approval and manage settlement, keeping the limited-recourse structure compliant throughout.
With your accountant and adviser involved, we complete the purchase compliantly. For the full picture, read our complete SMSF property loan guide, or explore our finance services.
Book a free, no-obligation chat and we will check your fund and match you to an SMSF lender.
Source: SMSF and LRBA guidance from the ATO, and general super information from ASIC MoneySmart. SMSF rules are complex – seek licensed advice.
