Can’t Borrow Any More Personally?
How an SMSF Could Unlock Your Next Property Investment
Many investors hit a point where they feel “stuck”—they’ve reached their personal borrowing capacity, but they’re not ready to stop building their portfolio. Sound familiar?
Here’s the good news: if you have a Self-Managed Super Fund (SMSF), you may have another path forward. While SMSF property investment isn’t for everyone, when done right, it can be a powerful way to diversify your assets, leverage your existing super, and continue growing your wealth—even when banks say no to further personal lending.
Let’s explore how it works and when it might be the right fit.
Why Consider Property in Your SMSF?
An SMSF allows you to take greater control over your retirement savings, including the ability to invest in residential or commercial property. When structured correctly, purchasing through your SMSF can offer a range of benefits:
✅ Leverage Superannuation Funds
Rather than saving for a deposit from scratch, your super can be used to fund part of a property purchase—with the balance financed through a limited recourse borrowing arrangement (LRBA).
✅ Tax Advantages
Rental income and capital gains within an SMSF are typically taxed at concessional rates (15% or less), with potential for 0% tax in retirement phase.
✅ Diversification
Property offers a stable, long-term asset class that helps balance risk when paired with traditional super investments like shares or managed funds.
✅ Income-Generating Asset
Property within your SMSF can produce rental income that contributes to your retirement savings while the asset itself continues to appreciate over time.
When Does SMSF Property Make Sense?
While SMSF property isn’t a one-size-fits-all solution, it can be an excellent strategy when:
- You’ve maxed out personal borrowing capacity but still want to invest
- You have a healthy SMSF balance (generally $200K+ is recommended)
- You’re planning for long-term growth or income
- You already work with (or are open to working with) a financial advisor, accountant, and SMSF lending specialist
- You want greater control over your investment strategy
What You Can’t Do
It’s important to understand the rules and restrictions around SMSF property investment:
- You cannot live in or use a residential SMSF property personally (or allow related parties to)
- The purchase must be arm’s length and for investment purposes only
- Renovations and improvements are limited if financed
- You need to comply with strict superannuation laws and lending conditions
That’s why having a knowledgeable team around you—including a buyers agent familiar with SMSF requirements—is key to making this strategy work smoothly and successfully.
How BBA Can Help
At BBA Property Advocates, we regularly work with investors who are looking to build their portfolio through SMSFs. We partner closely with your financial planner, accountant, and mortgage broker to ensure compliance while helping you secure a quality, growth-aligned property that suits your long-term goals.
We take care of:
- Property sourcing (including off-market opportunities)
- Thorough due diligence
- Negotiation and purchase strategy
- Coordination with your professional team right through to settlement
Our focus is to make the process simple, stress-free, and strategically sound—so you can continue building wealth without hitting unnecessary roadblocks.
Is SMSF Property Right for You?
If you’re not sure where to go next with your portfolio—or you’re curious about the potential of investing through your SMSF—we’d be happy to chat.
With the right support and structure, your super could become the key to your next smart property move.
Rhoda Barsalli
Founder & Senior Buyers Agent – BBA Property Advocates