Invest in Residential Property Through Your SMSF
Use your Self-Managed Super Fund to buy residential property and grow your retirement savings—fully compliant, strategic, and tailored to your goals.
What is a Residential SMSF Property Loan?
Leverage your SMSF to invest in property for retirement benefits
- SMSF property loans are structured through a Limited Recourse Borrowing Arrangement (LRBA).
- The property is held in a bare trust until the loan is repaid.
- Loan repayments come from SMSF funds only, not personal income.
- Only residential investment properties are eligible; you cannot live in the property or let relatives live in it.
Key Considerations for Residential SMSF Properties
Make sure your investment meets legal and strategic requirements
- The primary purpose must be investment for retirement, not personal use.
- Must comply with SIS Act rules including the “sole purpose test.”
- All transactions with related parties must be market value and fully documented.
- Banks are often more cautious with residential SMSF loans; careful planning is essential.
Benefits of Residential SMSF Investment
Grow your retirement portfolio strategically
- Potential tax advantages through superannuation rules.
- Greater control over your investment strategy compared to pooled super funds.
- Build a robust retirement portfolio with residential property as a long-term asset.
- Ideal for “mum and dad investors” or small business owners looking to leverage super for property growth.
How Edgecap Helps You
Expert guidance for your Residential SMSF property journey
- Assess your SMSF’s eligibility and borrowing capacity.
- Match you with lenders comfortable with residential SMSF loans.
- Ensure compliance with LRBA and SIS Act rules.
- Guide you through documentation, approvals, and strategy for long-term capital growth or rental income.
Have question?
Call us today for guidance on Residential SMSF property loans.