Elderly couple Buying House

18 Jan Buying Property with Superannuation: A Guide

Who doesn’t love the idea of buying property with your superannuation? At face value it seems like you’re killing two birds with one stone, but it can be fairly complicated and requires careful consideration.

The key is to make sure your overall investment strategies are in line with this potential property purchase and you always want to make sure you’re avoiding any unnecessary risks.

With your Self Managed Super Fund you’re able to buy either residential or commercial property. That being said, there are certain requirements you have to meet in order for this to be an eligible investment option for your SMSF.

So if you’re interested in purchasing a residential property what are the basic requirements? Generally speaking, this property is an investment, meaning you are not meant to reside in it.  In fact, neither can your family members or any members of the SMSF (or any of their family members for that matter).  If you’d like to rent your investment property to tenants that aren’t related to you or the fund, then by all means go for it!

Now let’s talk commercial.  This is a little less straightforward, so it’s always good to speak directly to your financial advisor but in general, purchasing commercial property has a little more leeway than residential property.

How so?

This commercial property needs to serve its sole purpose as an investment to provide retirement benefits to you and your SMSF members. However, unlike SMSF purchased residential property, commercial property purchased can be used for your business premises.  If it sounds too good to be true it’s not. In general when you’re purchasing a commercial property with your SMSF, you’re able to then lease it back to a member or a relative of the fund.  The key here is to maintain your distance from the sale to ensure everything is above board.

Whenever you’re considering purchasing property, whether it’s to serve as an SMSF investment property or you’re purchasing your first home, it’s a big decision that shouldn’t be taken lightly. We highly recommend speaking to a professional to assist you with your SMSF investment property purchase.

If you need assistance with your SMSF investment property contact us today and we’ll gladly walk you through the process.


All content provided on this ‘Buying Property with Superannuation: A Guide’ blog is for informational purposes only. The owner of this blog is not liable for any errors or omissions in this information.