How can I buy an Investment Property in my Super?

Superannuation Funds are now in a unique position of being able to purchase residential property as an investment class. Previous to 2007 the only way to purchase a residential property using your superannuation was to have the full amount of the property in your superannuation account. Since the legislation was changed to allow superannuation funds to borrow and the banks now having a lending product  for superannuation we have seen an increase in the number of Self-managed Superannuation funds. This is attributed to SMSF’s  taking advantage of the legislation to purchase an asset class that Australians are definitely more comfortable with.

The benefits are that the members of the fund are able to use the employer contributions and the rent to help pay for the loan costs and the property cost. There is no effect on the members personal financial situation and they are putting an investment property in the superannuation fund instead of shares and managed funds. The other advantage of the property in the SMSF is that the members can control the asset better through nominating rent and whether to hold or sell, something you can’t do with managed funds which the majority of superannuation funds invest in.


Before making the decision to use of a self-managed superannuation fund it should be considered and discussed with not only a licensed financial planner but one that specialises in this area as not all planners and accountants understand the correct set up and structure.