Invest in Your Business Property Through Your SMSF
Use your Self-Managed Super Fund (SMSF) to purchase commercial property for your business or as a long-term investment, while complying with Australian superannuation laws.
First Home Buyers
Together we assist you with choosing the right loan for your circumstances.
What is a Commercial SMSF Loan?
Grow your business and your superannuation together
- A Business SMSF loan allows your SMSF to borrow via a Limited Recourse Borrowing Arrangement (LRBA) to purchase commercial property.
- The property must be held as an investment for the SMSF — it cannot be used for personal purposes.
- Borrowing is structured so the lender’s recourse is limited to the property itself.
How It Works
Using your SMSF to invest in property
- Set up a Limited Recourse Borrowing Arrangement (LRBA) – the property is held in a bare trust until the loan is repaid.
- Select a Commercial Property – could be leased to your business or another company at market rates.
- Make Loan Repayments from SMSF Funds – personal income cannot be used.
- Comply with Superannuation Law – all transactions must satisfy the sole purpose test and be fully documented.
Eligible Property Types
Investment options for your SMSF
- Commercial Property: Offices, retail spaces, industrial warehouses.
- Leasing: Can lease back to your own business, but must be at market rates and on an arm’s-length basis.
- Investment Strategy: Designed to generate rental income and long-term capital growth for your retirement portfolio.
Benefits of Business SMSF Property Loans
Why structure your property investment through an SMSF
- Leverage SMSF funds for property investment without using personal income.
- Potential tax advantages under superannuation rules.
- Greater control over your business property investment strategy.
- Ability to generate consistent rental income for retirement.
- Build a diversified SMSF portfolio while complying with regulations.
Key Compliance Requirements
Stay compliant with superannuation and lending rules
- Property must be for investment only – no personal use.
- Must comply with SIS Act rules including the sole purpose test.
- Lease agreements with related parties must be market-value and fully documented.
- SMSF repayments must come from SMSF funds only.
- All documentation and transactions must be auditable.
How Edgecap Helps
Expert guidance for complex SMSF lending
- Review your SMSF and assess eligibility for commercial property borrowing.
- Identify lenders willing to finance SMSF commercial investments.
- Structure LRBA loans correctly to ensure compliance and reduce risk.
- Coordinate property purchase, trust setup, and lender communication.
- Provide ongoing support to manage SMSF property investments successfully.
Quick & Secure Online Application
With our easy and user-friendly form.