Advantages of Buying an Investment Property using your Self Managed Super Fund

Self-managed super funds (SMSFs) started to become a favorite choice for property investors in Australia. Based on the data, there are over 1,000 self-managed super funds registered weekly.

Your SMSF is no different in terms of tax advantages from that of retail and corporate funds in the market. Having the ability to own a property and have full control over it is what sets it apart. If you are after long-term retirement income then this is a good investment strategy for you.

Below are some of the pros or advantages of purchasing a property through an SMSF.

Lower Taxes

Your super fund is intended as a source for retirement savings. In this regard, whatever you earn within your SMSF is taxed at only 15%. Compared to owning a property investment under your own name, this is substantially a lesser amount.

Business Perks and Bonus

With an SMSF, purchasing a commercial property and having it leased by your own business is possible. Something you cannot do with a residential property – this is again dependent on the type of property portfolio you have or want to build. Please note though that leasing it yourself is under the guidelines that you pay the rent or lease based on the current market rental rate. Regardless, the income goes into your retirement or SMSF. Still a win-win.

Lower Capital Gains Tax

Properties held for more than 12 months are eligible to receive a â…“ discount on any capital gain it makes from the sale. This instance can lower the capital gains tax liability to a maximum of 10%.


Making use of your superannuation as an SMSF allows you to directly own an investment property. With your SMSF you also have direct control of your own investment strategies, investments, and the overall diversification in your portfolio.

These advantages and benefits of buying an investment property with a self-managed super fund also come with different sets of disadvantages and cons, we will put that together in the upcoming blog so you can look at both perspectives and decide if it really is for you 🙂

We have hundreds of investment properties you can buy in your SMSF. Call or email to find out more and discuss your options today.

Learn more about SMSF HERE. Property Rules in Self-Managed Super Fund.

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