Self-Managed Super Funds

How to buy an Investment Property using your super

If you want to buy an investment property with your Superannuation savings, you require a Self-Managed Super Fund (SMSF).

You’ll need approximately $150k in your super account to be able to purchase a quality SMSF property, which you can finance by yourself or together with your partner.

This can then be used to acquire a direct property investment, including houses and residential units as well as commercial property, such as office units, industrial warehouses and retail units.

What are the benefits of an SMSF?

1

Invest in property

One of the key benefits of an SMSF is investment choice and control. An SMSF offers investment choices not available in an ‘industry’ or ‘retail’ super fund, such as direct residential and commercial property.

2

Borrow to invest

Generally, a limited recourse loan can be secured for 50% to 70% of the purchase price of a property. This excludes other costs associated with the purchase such as Buyer’s Agent fees, legal, stamp duty and so on.

3

Minimise Tax

When it’s time for you to retire, an SMSF will allow you to have a seamless transition from the ‘accumulation phase’ to the ‘pension phase’ of super, without the need to sell down assets, therefore not triggering capital gains tax (CGT). If you do sell the assets held by the SMSF after retirement, no CGT will be payable.

4

Protect your assets

An SMSF can be a structure that protects your assets from litigation and bankruptcy.

Speak to our financing team