Using Super To Buy Property In Sydney

John Carew

A popular method in purchasing property in recent years is through the use of a self-managed super fund (SMSF). However, in order to utilise your SMSF in this manner, a number of factors come into play. An increasingly popular way to navigate your way to property ownership with the assistance of your SMSF is with the guidance of a property buyers agent.

Buying Property Through A SMSF

Using Super To Buy Property In Sydney

A property buyers agent can advise you whether using super to buy property is the right fit for your investment strategy.

Here’s how you do it. Use your super funds to purchase a property or a number of properties (either residential or commercial) to help build your investment property portfolio.Firstly you need to establish a SMSF; your accountant with assist with this; as often a trust needs to be established. Then depending on the size of your SMSF and the amount of funds available you may need to use a mortgage broker to assist you to organise your loan; currently you need a special loan called a limited recourse loan, which is different to a loan you would use for purchasing your home.

Unlike your standard home loan this SMSF loan will have greater restrictions and rules that you need to abide by.Your accountant and mortgage broker will assist with ensuring the self-managed super fund is established correctly; and that the loan terms and conditions are correct.

They will advise how much you can borrow and how much you can put towards the purchase of an investment property. When you know this it’s time for a buyers agent to help with sourcing and securing a great investment


There are a number of benefits to purchasing a property through a SMSF including being able to access you forced savings to be used for property investment; as well as significant tax advantages to using your SMSF to invest in property.

Real Estate Advice For Buyers Using A SMSF

When using a SMSF for buying an investment property there are some restrictions. For example, you cannot use the SMSF for property investment if you intend to live in the property or provide it as a residence for a family member. The actual stipulation is that the SMSF trustee(s), members or relatives are not allowed to benefit from the property. The property must be purchased just to increase the wealth building power of the SMSF retirement plan.

Using Super To Buy Property Final Decision

A buyer’s agent will be able to guide you through the steps you take in using your SMSF to purchase investment property. Their expertise and experience will be able to put your mind at ease about all the details. They will be able to tell you whether or not the property makes a good investment and whether it should appreciate in value.The property buyer’s agent will review the potential risks and can determine the expected yield.

A buyers agent will also work closely with your accountant and mortgage broker to ensure all the required components are in place and the necessary ‘check boxes’ are ticked. This in itself will save you a lot of time and provide you with much peace of mind.

Contact Us Today For More Information

Buying an investment property is one of the specialties we can help you with at Mayfield Property Buyers. Our goal is to match you with the right property with minimal cost and risk. We will be able to use our extensive research and understanding of the market to best inform you on whether or not you will benefit from using your super on such a purchase.

Contact us today to find out how we can help.

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