SMSF Property Investment Guide

Buy Property Through Your
Self-Managed Super Fund

A complete, step-by-step guide to purchasing residential investment property using your SMSF — from setting up the trust to settling the property.

Book Free SMSF ConsultationSMSF Calculators
10%
Minimum SMSF Deposit
of property value
15%
Tax on Rental Income
vs personal marginal rate
0%
Tax in Retirement Phase
capital gains & income
6
Max Fund Members
combine super balances

SMSF Property Cashflow Calculator

Enter your numbers to estimate monthly cashflow

Deposit: $50,000 | Loan: $450,000

Rates, insurance, mgmt fees etc.

Total net super available per month

Loan Amount
$450,000
10% deposit of $500,000
Loan Repayment (P&I)
$2,994/mo
7% / 30 yrs
Net Income (before repayment)
$1,784/mo
Rent $2,384 − Exp $600
Net Cashflow (after repayment)
−$1,210/mo
Covered by super contributions
Use Super Net Contributions as Extra Repayment

Super Net Contributions ($0) − Net Cashflow ($1,210) = $0/mo extra off the loan.

Example figures only. The shortfall is typically covered by ongoing employer super contributions (12%) flowing into the SMSF. Actual results depend on property location, interest rates, and individual circumstances.

0/7 steps done
0%
STEP 1Accountant

Create Your SMSF Trust

Handled by your Accountant

An SMSF (Self-Managed Super Fund) is a private superannuation fund you control yourself, with up to 6 members. Before you can buy property through super, the fund must be legally established as a trust.

What Your Accountant Sets Up

  • SMSF Trust Deed — the legal document governing your fund's rules and investment strategy
  • Corporate Trustee — a Pty Ltd company acts as trustee (recommended over individual trustees for property)
  • SMSF Registration with the ATO — your fund gets a Tax File Number (TFN) and Australian Business Number (ABN)
  • Investment Strategy — a written document stating how and why the fund will invest (including property)
  • Member declarations and consents — all members sign trustee declarations

Why a Corporate Trustee?

  • Cleaner separation between personal and fund assets
  • Easier to add/remove members without changing property title
  • Required by most SMSF lenders for property purchases
  • Cost: approximately $500–$1,500 to establish including ASIC registration

How the Structure Works

  • Each member (up to 6) contributes their employer super (currently 12%) into the SMSF
  • The SMSF can hold multiple properties through separate Bare Trusts
  • Example: 2 applicants → SMSF → Bare Trust 1 (Property 1), Bare Trust 2 (Property 2), Bare Trust 3 (Property 3)
  • The SMSF is the beneficial owner; the Bare Trust holds legal title during the loan period

💡 Pro Tip: Choosing a specialist SMSF accountant (not a general accountant) is critical. SMSF compliance is complex — errors can result in the fund being made non-complying, triggering a 45% tax on the fund's assets.

STEP 2You / Accountant

Open SMSF Bank Account

You and/or your Accountant

STEP 3ATO / Messenger Service

Rollover Super to Your SMSF

ATO / Messenger Service

STEP 4Mortgage Broker

Apply for SMSF Pre-Approval

Your Mortgage Broker

STEP 5You / Solicitor

Find & Make an Offer

You and your Solicitor

STEP 6Accountant

Apply for the Bare Trust

Your Accountant

STEP 7You / Solicitor / Bank

Settle the Property

You, Solicitor & Bank

Educational purposes only. SMSF property investment is complex and regulated by the ATO. This guide is general educational information only and does not constitute financial, legal, or tax advice. SMSF rules are strict — non-compliance can result in severe penalties including a 45% tax on fund assets. Always seek advice from a licensed SMSF specialist, financial adviser, and solicitor before proceeding.

Ready to Start Your SMSF Journey?

MortgageBricks specialises in SMSF lending. We work with specialist SMSF lenders and can guide you through every step — from trust setup to settlement.

Book Free SMSF Strategy Session Call 0428 033 000