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So, you are asking yourself, “Can I buy a property with my superannuation?” Well, that is indeed a possibility. In fact, making use of your superannuation to invest in real estate is one of the best ways to increase your wealth before you retire!

Recent changes to the Superannuation Law allow Aussies to borrow money to buy property using an SMSF structure that is created precisely for this purpose, given that their conditions are met. The new changes enable you to borrow money and invest in a residential or commercial property and use that purchase to generate income.

In this post, you’re going to learn the answers to the questions you want to ask about using your super for your investment property:

Can I Use My Super to Purchase a Property?

As mentioned, the answer to this is yes, but there are certain conditions that have to be met. For one, you need to set up your Self Managed Super Fund as it is the only option that will allow you to purchase a property with your super. There are other types of super funds, but if you intend to buy an investment property, you don’t need to worry about those because none of the other funds will allow you to buy a property.

You also need to remember that you cannot use SMSF to buy a residential investment property from yourself or other members of the fund, or any relative of yours. You should also rent out the property at market rent. Fund members and their relatives are not allowed to rent the property, too.

Are There Benefits of My Super Fund That I Should Consider, Too?

Yes, most super funds have insurance benefits like life insurance cover, income protection cover, and total and permanent disability cover. So before you switch to SMSF, you need to consider those insurances and make sure you’re covered by sourcing them independently.

Can I Just Use the SMSF for the Deposit and Borrow the Rest?

Yes, you can do that, but it’s not going to be as simple as an outright purchase, and there are strict rules that you should follow when using your SMSF to borrow from a lender. That means this option does not apply to everyone.

You see, there are differences between borrowing as an SMSF and as an individual. The amount lenders will allow you to borrow is significantly less than what they would offer individual borrowers. It often just amounts to 60% or 70% of the total price of the property. Additionally, you will pay a higher interest rate if you use your SMSF to borrow from a lender, as well as other costs that may be involved in setting up a Bare Trust.

An SMSF needs individual or corporate trustees of up to 4 members. Every trustee should be a member. And as a trustee, you control the SMSF and all the investment decisions made. You should also ensure that compliance requirements are always met, from financial accounts, annual tax returns, and getting audits done.


So, can you use super to buy an investment property? With an SMSF, you can! Just be sure that you meet all their requirements. Your option to just use the money for the deposit and your plan to just take out a loan for the rest may be more complex, though, so you should get the help of a trusted lending specialist who can help you sort these things.

If you want to learn more about the benefits of SMSF or you want the assistance of the best mortgage broker in Sydney, Wealthy You can help you. We are an alternative lending specialist who can make it easier for you to get the loan solution that you need.