Clarify Your SMSF Strategy

Start with a written investment strategy that covers objectives, risk tolerance, liquidity and diversification. Link property selection to your fund’s long-term goals, not short-term speculation. Keep adequate cash reserves for expenses, insurance and interest rate shifts.

Know the Rules Before You Buy

An SMSF must meet the sole-purpose test and transact at arm’s length. Residential property cannot be lived in by members or related parties. If using limited recourse borrowing (LRBA), the asset must sit in a bare trust and all loan terms must be commercial. Build your timeline around finance, trust setup and settlement so documents land in the right order. Grow your wealth faster — visit now to find the best property investment in Australia for long-term returns!

Choose the Right Asset Type

Match property type to the fund’s profile.

• Residential: steady demand, but no related-party use or leasebacks.

• Commercial: potential for higher net yields and longer leases; a related-party business can lease at market rates with a formal agreement.

Assess yield after maintenance, insurance, strata and management. Stress-test net income at higher interest rates.

Run the Numbers Rigorously

Underwrite conservatively: vacancy assumptions, capex allowances and rate buffers. Compare gross yield to net yield and to your SMSF’s target return after costs. Model LRBA scenarios for principal, interest and refinance risk at end of the fixed term.

Tighten Governance and Records

Keep independent valuations, lease agreements, loan documents and trustee minutes tidy for the auditor. Review the investment strategy annually and after major events. Ensure contributions and rent flow through the correct SMSF bank account and that expenses are paid by the fund.

Plan for Liquidity and Exit

Property is illiquid. Stage contributions, maintain a cash bucket and consider insurance to cover member death or disability. Map exit options—sale, refinance, or pension-phase drawdowns—well before retirement. Take charge of your future — learn how to buy property with super and grow your wealth smartly!

Use the Right Team

Engage an SMSF-savvy accountant, licensed adviser, mortgage broker experienced with LRBAs and a property lawyer. Good structure and paperwork protect returns as much as the asset itself.