Before we explore some of our community’s frequently asked questions, let’s dive into the basics.

What is an SMSF and how does it work?

An SMSF (Self-Managed Super Fund) is essentially an ownership structure that gives you full control over your retirement savings. Unlike regular super funds, you make the investment decisions — from shares and term deposits to property (under strict rules).

It’s set up like a trust, where you’re both the trustee and the member, giving you flexibility and responsibility. All assets must be held solely for retirement purposes and must comply with super laws.

The benefits of a Self-Managed Super Fund?

• Full control over your assets and investment choices
• The ability to borrow (leverage) to make your super go further — e.g. using lending to help fund a property purchase
• Build your portfolio independently of your personal borrowing
• Potential tax advantages

Can I use equity within my SMSF investment property?

When you buy a property within your SMSF, you can take out a loan at that time. However, you cannot draw on future equity growth in that property to fund additional purchases. The equity can help with the initial purchase, but you can’t access it later for further borrowing.

I’m self-employed and don’t contribute to super — can I still purchase an SMSF investment property?

Yes — there are options for you. You’ll need to work with an investment-savvy mortgage broker to structure it correctly.

What type of property should I invest in through Super?

Generally, an established, low-maintenance property is best — a “set and forget” style. There’s no real advantage in buying brand-new property for tax deductions, as super funds already benefit from lower tax rates. Look for something that doesn’t require significant care or improvements.

Can I renovate or develop a property held in my SMSF?

No — you can’t significantly renovate or develop a property in your SMSF. You can make improvements to maintain or repair what’s already there, but the structure of the property must remain the same.

How does SMSF property investing fit into a long-term wealth strategy?

It’s one piece of the puzzle — a strategy that investors can consider as part of building long-term wealth.

How much super do you need to get started with an SMSF property purchase?

With rising property prices, you’ll generally need at least a 20% deposit, plus funds to cover stamp duty and other purchase costs. At current prices, this usually means having around $250,000 in your super fund. However, this will depend on your personal circumstances — it’s important to seek advice from the right professionals.