Can I use my super to invest in property?

Are you interested in investing in property but aren’t sure how to finance it? The answer may already be a part of your retirement plan.

If you have a Self-Managed Superannuation Fund (SMSF), you might have a great vehicle for purchasing both residential and commercial property using the funds in your super. Investors who own property in their SMSF can also leverage against that property, giving them a more diversified portfolio.

But don’t commit to it just yet. As with all investments, there are rules that must be followed. When choosing a property, you have to make sure it qualifies for purchase by your SMSF. The property must:

  • Meet the ‘sole purpose test’ of solely providing retirement benefits to fund members
  • Not be acquired from a related party of a member of the fund
  • Not be lived in by a fund member or any fund members’ relatives
  • Not be rented by a fund member or any fund members’ relatives


You can expect to pay fees from your SMSF when you purchase an investment property that will further reduce the balance of your fund. You should always have a clear picture of what fees are being charged and why.

Fees should NEVER be a surprise.


Borrowing from your super to buy property comes with strict borrowing conditions. Because this kind of purchase is so strict, it’s important to understand if this kind of activity is in line with your overall strategy and risk tolerance.

The rewards often outweigh the risks. For instance:

  • The ability to leverage against the property to increase your investment assets
  • Can be tax-effective as there are no earnings or capital gains tax payable in the pension phase
  • Control over the investment
  • Accurately assessing your current position (with absolutely no judgement)
  • Getting crystal clear about your financial and lifestyle goals
  • Creating a detailed, custom plan with a realistic timeline
  • Implementing each stage of the plan using every financial strategy available to minimise your tax, maximise your returns and protect your growing wealth

Don’t let this kind of opportunity slip by you simply because the information is confusing or overwhelming.