Most Australians know their superannuation is there for retirement — but did you know you can actually use it to invest in property?

With the right setup, your super can be used to buy an investment property through a self-managed super fund (SMSF). It’s a strategy more Aussies are exploring to grow their retirement savings, but it comes with some key rules and responsibilities.

How It Works

To buy property using your super, you’ll need to set up an SMSF. Unlike your standard super fund, an SMSF gives you full control over how your super is invested — including the option to buy real estate.

Your SMSF can even apply for investment loans to help purchase the property. This is done through a structure called a Limited Recourse Borrowing Arrangement (LRBA), but borrowing within super is more complex than a regular home loan.

That’s where a trusted mortgage broker can really help — they’ll guide you through the process, help you understand your borrowing power, and connect you with lenders who offer SMSF loans.

What Are the Rules?

Before jumping in, there are some important conditions to be aware of:

• The property must be used for investment purposes only – you can’t live in it or rent it to family.
• It must meet the “sole purpose test” – the investment should benefit your retirement, not your lifestyle today.
• All rental income and expenses must go through your SMSF.
• If you’re borrowing, the investment loan must meet strict superannuation and lender requirements.

Why Use Super to Buy an Investment Property?

• Tax perks – Rental income and capital gains are taxed at just 15% in your SMSF (or 0% when you retire).
• Potential long-term growth – Property has the potential to grow steadily over time.
• More control – You decide where your money is invested, rather than leaving it to a big fund manager.
• Diversification – Adding property to your portfolio can help spread your investment risk.

It’s Not for Everyone

• Setting up and running an SMSF comes with costs — think legal, accounting, and compliance fees.
• Investment loans through super usually need a bigger deposit and come with tighter lending criteria.
• You can’t use the property for personal reasons — this is strictly for investment only.
• Managing an SMSF means taking on legal responsibility — getting it wrong can lead to penalties.

Is It Right for You?

Using your super to buy an investment property could be a smart move if:

• You have at least $200,000 in super.
• You’re comfortable taking an active role in your finances.
• You’re seeking more control over your retirement planning.
• You’ve got a good mortgage broker and financial adviser to support you.

Let’s Chat

Interested in using your super to build wealth through property? As experienced mortgage brokers, we can help you understand your borrowing options, compare investment loans, and work alongside your accountant or adviser to ensure it’s the right fit.