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SMSF residential

SMSF residential property loans.

Buying residential investment property inside your SMSF can be powerful for long-term wealth building — provided the structure, liquidity, and lender panel are all lined up before you sign anything.

The five-minute version.

An SMSF can borrow to acquire a single residential property via an LRBA. The SMSF needs a bare trust set up before contracts are signed — getting this sequence wrong is the most common costly mistake. The SMSF also needs to meet the lender's liquidity test (usually 10% of the loan balance held in cash or liquid assets after settlement) and needs to show ongoing serviceability from contributions and rental income.

LVR is typically capped at 70-80% for SMSF residential. Rates are slightly higher than standard investor loans. The lender panel is small — second-tier banks and non-bank specialists dominate. We do not sell SMSF products; we only help structure the lending side once you and your financial adviser have decided SMSF property is the right strategy.

SMSF residential FAQs

Can the SMSF buy a property from a related party?
No, not for residential property. Related-party acquisitions are prohibited for residential. Commercial property is different — see the SMSF commercial page.
Can I live in the SMSF property?
No. SMSF residential property must not be used by any fund member or related party. Use it as a genuine investment property only.
What happens if the SMSF can't service the loan?
The lender's recourse is limited to the specific property (that's the 'limited recourse' in LRBA). Other SMSF assets are protected — but any shortfall is still effectively lost. Liquidity planning is essential.
Important: SMSF lending decisions involve superannuation, tax, and legal considerations that sit outside the scope of mortgage broking. Nothing on this page is financial product advice. Always coordinate with your financial adviser, accountant, and SMSF specialist before acting on any SMSF lending information.

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