Expert insights: Chris Collard on using SMSF to buy property.

Ever feel like your borrowing power has hit a ceiling? You’re not alone.

With property prices climbing and banks tightening their lending rules, many Aussies are looking for smarter ways to invest. One option that’s getting a lot of attention is using a Self-Managed Super Fund (SMSF) to buy property.

Thinking about whether this could work for you? Book a free chat now with the FinancePath team and get expert advice tailored to your goals.

We sat down with Chris Collard, Director at FinancePath, to break down the real pros and cons of this strategy without the jargon.

If you’ve ever wondered whether your super could help you get into the property market, this is for you.

The Upside

Q: Chris, what makes SMSFs such a popular option for property investment these days?

Chris: It’s all about control and opportunity. With an SMSF, you’re not just letting your super sit in a big fund—you’re actively choosing how it’s invested. And for a lot of people, that means property. It can help you borrow more, pay less tax, and grow your retirement savings in a way that feels more tangible.

Q: Chris, what are the main benefits of using an SMSF to buy property?

Chris: There are quite a few, and they’re worth understanding properly:

• Boosted borrowing power

When you use your super to invest, you’re tapping into a pool of money that’s separate from your personal income. That means you might be able to purchase a property that’s out of reach otherwise.

• Control over your investments

With an SMSF, you’re in the driver’s seat. You choose where your money goes, whether that’s into property, shares, or other assets. For people who want more say in how their retirement savings grow, that’s a big plus.

• Long-term wealth building

Property is generally seen as a stable, long-term investment. If managed well, it can provide rental income and capital growth that supports your retirement goals.

• Diversification

If your super is mostly in shares or managed funds, adding property can help spread your risk across different types of assets, if that is what you are after.

The Flip Side

Q: And what about the downsides? What should people be careful of?

Chris: There are definitely some things to think through before diving in:

• It’s not a simple setup

You can’t just buy a property with your super like you would personally. You need to set up a Limited Recourse Borrowing Arrangement (LRBA), which involves legal structures, separate trusts, and lender conditions. It’s doable—but it’s complex.

• Higher upfront and ongoing costs

Setting up an SMSF and the borrowing structure can cost thousands. Then there are yearly costs like audits, tax returns, and compliance checks. If your super balance is small, these costs can eat into your returns.

• Liquidity issues

Property isn’t easy to sell quickly. If your SMSF needs to pay out a member’s benefit or cover unexpected costs, having all your money tied up in a house can be a problem. This strategy largely suits people with larger Superannuation balances that are diversly invested in multiple asset classes.

• Strict rules and regulations

The ATO has very clear rules about what you can and can’t do with property in an SMSF. For example, you can’t live in it, and you can’t rent it to a family member. Breaking the rules can lead to serious penalties. Ensure you engage a licenced Financial Planner who can guide you through all the legal stuff.

• Risk of over-investing in one asset

If your SMSF owns just one property, and that property underperforms, your entire retirement savings could take a hit. It’s important to think about balance and not put all your eggs in one basket. Always consider this strategy as part of your overall investment strategy, not just in isolation.

Who It’s For

Q: So, who should consider this strategy?

Chris: It’s best for people who have a decent amount in super, are thinking long-term, and are comfortable managing their own fund, or have a good team around them. It’s not a quick fix, and it’s not for everyone. But with the right advice, it can be a powerful way to build wealth for retirement. We always advise that this option needs to be considered in line with your total financial planning goals. We recommend always speaking with a licensed financial planner before considering such an investment or investment strategy.

Ready to explore your options?

If you’re curious, don’t try to figure it all out on your own. Get advice from someone who understands both property and superannuation lending.

At FinancePath, we help everyday Australians figure out if this strategy fits their goals, and we make sure they’re set up properly from the start.

Reach out to the FinancePath team today and take control of your financial future.