Buying Property in a SMSF v Individual Name

Investing in property can be a great way to finance your retirement. But what’s the difference between buying property in a self-managed super fund (SMSF) versus buying property in your individual name? Will you be better off buying property in your superannuation? It’s not a straightforward answer. There are a lot of variables that influence this answer including the asset type, liquidity outside SMSF and contribution levels, just to name a few.

We’ve outlined the key benefits and drawbacks in buying property in SMSF.


Combining Investing as a Family

By combining your superannuation account balances with other members of your family, you may be able to invest in a larger asset.

Tax Effective

Superannuation receives concessional tax treatment on assets, where earnings within the SMSF are taxed at 15%, and capital gains at 10% for assets held more than 12 months.  If you hold onto the property until retirement, the earnings may be tax-free.

Pre-Tax Repayments

You can salary sacrifice additional income to super and pay off your loan faster.

Supporting your Business

If you buy a commercial property, you are able to lease the property to your business at current market rates.


Lack of Diversification

Having all your eggs in one basket can make it difficult when you need cash from your superannuation fund.

Set up Costs

You need to consider SMSF set up costs and higher interest rates when getting a loan through your SMSF.

No Personal Benefit

The investment property must be purchased at ‘arm’s length’ on a strict commercial basis. If the investment is a residential property, you cannot purchase from, lease to, or rent to a related party.

Cash Flow Certainty

Ensure your level of SMSF contributions and rental income are enough to cover all costs.

Your investments need to be aligned to your long-term plan to achieve your retirement goals. Do your homework and get the advice from a financial professional. A little focus goes a long way.

To find out more:

Complimentary Meeting: TAG can provide advice on your own circumstances before you start this investment strategy to ensure you get the best outcome for your retirement. Contact us to organise a time.

Watch our video: Buying Property in Super.

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Contact Us: if you have any questions or want to commence your journey to financial success with a complimentary meeting.

Disclaimer: The information contained on this page is general in nature.  Professional advice should be sought before acting on any aspect on this page.