The 11 Step Process: How to Buy Property With Your Superannuation Fund


Buying Property With Your Superannuation Fund

Do you want to use your super to purchase an investment property?

Yes?  Then you need to ensure you ELIMINATE the guesswork and you understand the facts.

Purchasing property using superannuation has become increasingly popular in Australia, particularly after September 2007 when the Government relaxed the superannuation rules. This change the laws allowing people to use their super as deposit to borrow funds to acquire property.

The Stats

    • 570,000 People in Australia have transferred their super over to a Self Managed Super Fund (SMSF).
    • $560 billion is invested in SMSFs. This equates to a third of all money invested in superannuation.
    • Average balance of an SMSF’s is approximately $1 million.


Why SMSF Property Investment?

Since the GFC people are more wary of having their superannuation invested in the stock market.

At this time the government realised they were exposed by only allowing people to invest their funds in the stock exchange.

Giving people the ability to create and run their own superannuation funds as well as purchasing property within these funds allows for diversity, control and leverage.

Investing in property within a SMSF offers a variety of attractive benefits compared to direct property investment.


Advantageous Rental Income Tax

In-super, transactions are subject to more favourable tax rates than buying a property personally. Your rental income from property in your SMSF may be taxed at a rate of 15%, compared with up to 45% that regular property investors pay.

The Rental Income Tax Advantages Get Better

Once in the retirement phase your rental income from your SMSF properties may be tax-free.

Advantageous Capital Gains Tax

If you sell the property before retirement phase you will only pay 10% capital gains tax, as long as you held the property for longer than a year.

Capital Gains Tax Gets Even Better After Retirement

If you hold the property within your SMSF until after retirement you should pay no capital gains tax upon selling the investment.

Benefits For Business Owners

Small to medium business owners commonly arrange for their SMSF to hold their business premise for a range of reasons including tax advantages, asset protection and succession planning.

An Investment You Understand

Everyday Australians feel confident to get started investing in property over other asset classes because it’s easy to learn, familiar and generally well understood.


“The average SMSF member balance is 16 times the size of the average account balance of non-SMSF members”


Purchasing Property via a SMSF:

If you have sufficient funds available in your super, you can purchase property outright without borrowings. However if you don’t have sufficient funds available, you can use your superannuation as a deposit to purchase a property.


    1. Set-up your super fund with your chosen SMSF provider
    2. Decide on your corporate trustee
    3. Open your bank account (whoever you feel is best)
    4. Submit your rollover request (Ideally speak to a solicitor)
    5. Seek your pre-approval from the bank
    6. Select your investment property (ensure good growth and yield)
    7. Set-up your bare trust
    8. Sign your contract for the selected property (Speak to your solicitor for legal documents)
    9. Submit your loan application
    10. Transfer your funds – super funds get sent to the solicitors trust account
    11. Settle on your property (loan).

If you would like help setting up your SMSF account please contact Australian Property Planners Association on 1300-655-696.


Alternately you can submit your details below for your Free SMSF Beginners Starter Pack.

Buying Property With Your Superannuation Fund

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