Using a Self-Managed Super Fund (SMSF) to invest in property is becoming a popular strategy among Australians looking to take more control of their retirement savings. Whether you’re thinking of buying a commercial property for your business or diversifying your super portfolio, it’s definitely possible — but the rules are strict, and getting it wrong can be costly.
At W & G Lawyers, we help make sure you stay compliant and confident from start to finish.
What Can Your SMSF Buy?
Your SMSF can invest in:
- Commercial Property – such as shops, offices, or warehouses. This is the most flexible and common option.
- Residential Property – but only as a passive investment. That means you, your family, or any related party can’t live in it or rent it.
Note: Your SMSF generally can’t buy property from you or someone close to you — unless it’s a business property bought at fair market value.
Can My Business Rent from My SMSF?
Yes! This is called an in-house lease. If your SMSF owns a commercial property, your business (or family company/trust) can rent it — but only under strict conditions:
- The lease must be at market rent
- It must be in writing and properly documented
- Rent must be paid on time
- You must not receive any personal benefit
Not Enough Cash? You Might Use an LRBA
Don’t have enough super to buy the property outright? Your SMSF might be able to borrow through a Limited Recourse Borrowing Arrangement (LRBA) — but this structure is legally complex.
LRBAs must:
- Be set up using a bare trust (also called a holding trust)
- Be used only for buying or repairing, not improving the property
- Include a proper loan agreement — especially if the lender is a related party
- Involve independent legal advice (required by most lenders)
A poorly structured loan can cause serious issues with the ATO — including extra tax or disqualifying your SMSF.
Common Mistakes to Avoid
🚫 Using the property for personal holidays or letting family manage it
🚫 Buying a house from yourself or a relative
🚫 Renting to related parties at below-market rent
🚫 Forgetting to set up the bare trust before signing the contract
🚫 Not updating asset ownership when trustees change
🚫 Skipping legal paperwork or borrowing informally
How W & G Lawyers Can Help
We take the confusion out of SMSF property investing by offering:
🔹 Legal advice on SMSF structuring and LRBAs
🔹 Review of contracts, loan terms, and trust deeds
🔹 Guidance on ATO rules and super law compliance
🔹 Help with in-house leasing rules and restrictions
🔹 Support with trustee changes, asset transfers, and disputes
We also work directly with your accountant or adviser so you have a fully coordinated solution.
Helpful Resources
Ready to Get Started?
Buying property through your SMSF is exciting — but it must be done right.
📧 Email us at info@wglawyers.com.au
📱 Or call us on 0433 071 350
Let’s make sure your investment works for your future, not against it.
Disclaimer
The information contained in this article is provided for general informational purposes only and does not constitute legal advice, nor is it intended to replace legal advice tailored to your personal circumstances. While every effort has been made to ensure the accuracy of the content at the time of publication, laws and regulatory requirements may change over time. You should not act or rely on any information in this article without first obtaining advice from a qualified legal professional.
If you require legal assistance with SMSF property investment, Limited Recourse Borrowing Arrangements (LRBAs), or any related matter, we encourage you to contact W & G Lawyers for personalised and practical legal advice tailored to your situation.