If you’ve been hearing more about buying property with SMSF, you’re not alone.
It’s a topic that comes up regularly in conversations I’m having with clients here in Marrickville. From PAYG employees through to self-employed business owners, more people are looking to understand what may be possible when it comes to using their super to invest in property.
But the question is always the same:
Can I actually do it?
What is an SMSF and How Does Property Fit In?
A Self-Managed Super Fund (SMSF) gives you more control over how your super is invested.
For some Australians, that includes property.
According to the Australian Taxation Office (ATO), SMSFs can invest in property as long as they meet strict rules around how the investment is structured and used.
These rules include:
You can learn more directly via the ATO website.
Can PAYG Employees and Self-Employed Clients Both Qualify?
This is one of the biggest misconceptions around SMSF lending.
Many people assume SMSF loans are only suited to high-net-worth investors or established business owners.
In reality, I’m seeing a mix of:
In many cases, eligibility comes down less to employment type and more to:
What Types of Property Can Be Purchased Through SMSF?
SMSF investors commonly explore:
Commercial property can be particularly attractive for self-employed clients wanting to purchase their own business premises through their SMSF structure.
This is something becoming increasingly common across areas like Marrickville and Sydney’s Inner West, where many local business owners operate within trades, retail, hospitality and professional services.
What Should You Be Aware Of?
While SMSFs offer more control over investment decisions, they also come with additional responsibilities.
Some key things to understand include:
According to Moneysmart, property investment through SMSF can involve risks including reduced diversification and liquidity limitations.
This is why most conversations I have with clients start with understanding the full picture first, rather than jumping straight into an application.
Where to Start
For most people, the first step isn’t applying for anything.
It’s understanding:
If you’re exploring this space, you can also learn more about how we support SMSF clients here:
https://ratemoney.com.au/smsf-loans
Or feel free to reach out to have a conversation.
SMSF property investing isn’t for everyone, but it’s also not limited to a select group of investors.
For both PAYG and self-employed Australians, it’s something worth understanding properly before ruling it out.
If you’re based in Marrickville or Sydney’s Inner West and want to understand what may be possible, I’m always happy to talk it through.
Sources
This is general information only and not financial advice. Terms, conditions and lender criteria apply.
Disclaimer: Always consult with an accountant or financial advisor for personal advice. Rate Money Pty Ltd - ABN 92 632 468 056 - Australian Credit Licence 519 912 - Credit criteria and T&Cs apply.