Brisbane Insurance & Financial Services | Insurance Brokers Brisbane

What you need to know about SMSF property investment ?

Further to the key considerations for property investing there are particular costs and risks you need to be aware of when using an SMSF to gear into property including:

  • being potentially more costly than other property loans
  • maintaining sufficient liquidity or cash in the SMSF to make loan repayments
  • complexity of loan documentation and contracts, where, if not set up correctly, unwinding the arrangement may not be allowed and the property may have to be sold at an unfavourable time
  • not being able to offset any tax losses from the property against personal taxable income outside of the SMSF
  • limitations to alter and improve the property until the loan is repaid.
  • Investment properties held by an SMSF are also governed by specific ownership and usage regulations. These rules include that:
  • the property must be used solely for providing retirement benefits to members
  • members cannot live in the property
  • members cannot lease the property themselves or to a family member
  • the property cannot be purchased by a related party of a member.

However, an SMSF may purchase business premises and allow the member/s to pay rent as there are limited recourse borrowing arrangements that SMSFs can use, but strict conditions must be adhered to. Blue Chip Financial can discuss the rules associated with SMSF property investment with you.

General Advice Warning:

The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.


Whilst Blue Chip Financial is of the view the contents of this website is based on information which is believed to be reliable, its accuracy and completeness are not guaranteed and no warranty of accuracy or reliability is given or implied and no responsibility for any loss or damage arising in any way for any representation, act or omission is accepted by Blue Chip Financial or GPS Wealth Ltd or any officer, agent or employee of Blue Chip Financial or GPS Wealth Ltd.