Considering Buying Property Through Your SMSF?
An SMSF can still buy residential investment property outright. What it can't do, from 10 August 2026, is take out a new limited recourse borrowing arrangement to buy one. The rules are strict and non-compliance has real penalties. FAA sources properties and connects you with the specialist advisers you'll need.
- Property Sourcing
- Adviser Connections
- New Builds
- Cost Analysis
Understand whether SMSF property may suit your circumstances and seek appropriate licensed advice before making a decision. FAA Property does not provide personal financial or SMSF advice.
UNDERSTANDING SMSF
What SMSF Property Investment Involves
Buying outright and borrowing to buy are now two different questions. An SMSF can still buy residential investment property outright with the fund's own money. It can't finance that purchase under a limited recourse borrowing arrangement (LRBA) entered into on or after 10 August 2026, because a new LRBA over real property can only acquire business real property. LRBAs are not banned outright, and arrangements the fund already had keep running.
The rest is unchanged. You can't live in the property, structural renovations are restricted while an LRBA is active, and your fund needs enough cash flow to cover expenses beyond just the rental income. The compliance is ongoing and getting it wrong can mean ATO penalties, which is why licensed advice from an SMSF specialist is essential before you take any steps.
We set out what changed, what was never allowed and what a fund can still do in our full guide to using super to buy an investment property.
Last reviewed 12 August 2026, after the SMSF borrowing change that commenced on 10 August 2026.
Before You Proceed, Understand
- ✓SMSF property investment has stricter rules than personal investing
- ✓You cannot live in or personally use the property
- ✓A residential purchase has to be funded outright, plus acquisition costs
- ✓A new LRBA from 10 August 2026 can only acquire business real property
- ✓An LRBA entered before 10 August 2026 can be kept or refinanced
- ✓The fund must have adequate cash flow beyond rental income
- ✓Structural renovations are restricted while an LRBA is active
- ✓Annual audits and compliance obligations apply to all SMSFs
Important Considerations for SMSF Property
These aren't small details. Each one affects whether SMSF property investment is appropriate for your fund.
Borrowing Changed on 10 August 2026
A limited recourse borrowing arrangement (LRBA) entered into on or after 10 August 2026 to buy real property can only acquire business real property. A new LRBA over residential investment property is no longer available, whoever the lender is.
Single Acquirable Asset Rule
Where an LRBA still applies, one arrangement covers one acquirable asset. Separate titles can't sit under a single LRBA, and a fund can't borrow under an LRBA to improve an asset it already owns.
Cash Flow Requirements
Your fund needs enough cash flow to cover property expenses, member obligations and repayments on any borrowing it still has. Rental income alone usually isn't enough.
Funding a Residential Purchase
A residential investment property now has to be bought outright with the fund's own money, so a deposit is no longer the measure. Stamp duty, legal fees and establishment costs all come from within the fund too.
Renovation Restrictions
While an LRBA is active, you can't make structural improvements. Repairs and maintenance are fine, but adding a room or extending isn't allowed. A property the fund owns outright isn't restricted this way.
Audit and Compliance
Annual audits, documented investment strategy and full compliance with super laws. If you get it wrong, the ATO can impose penalties on trustees.
How FAA Helps With SMSF Property
FAA handles property sourcing and coordination. The licensed advice comes from the specialist accountants, advisers and solicitors FAA connects you with.
Property Sourcing
FAA sources new-build and house-and-land properties across South East Queensland. Whether a particular property is an appropriate acquisition for your fund is a decision for your SMSF specialist, not for FAA.
Cost Analysis
Cost modelling built around SMSF structures: fund cash flow, holding costs and projected returns within super.
Adviser Connections
FAA connects you with specialist SMSF accountants, financial advisers and solicitors. You need licensed advice before buying through super, and FAA makes sure you have it.
Build Coordination
For new-build SMSF purchases, FAA coordinates construction from contract signing through to practical completion and handover.
Tenant Placement
Once the property is complete, FAA handles leasing and tenant placement so the fund starts generating rental income as soon as possible.
Property Management
Ongoing management from FAA's Maroochydore office: inspections, maintenance, compliance reporting and rent collection on behalf of the SMSF.
Want to see if the numbers work within your SMSF?
THE FAA INVESTMENT PATHWAY
The FAA SMSF Property Pathway
Your path from strategy to steady rental returns, step by step.
Initial Discussion
Understand your SMSF balance, structure and whether property investment may suit your fund circumstances
Adviser Referral
Connect with specialist SMSF accountants and financial advisers for licensed advice on your specific situation
Property Sourcing
Access new-build and house-and-land opportunities for your SMSF specialist to assess against your fund's requirements
Cost Analysis
Receive a detailed cost analysis modelled within the SMSF structure, including fund cash flow and holding costs
Acquisition Support
FAA coordinates with your solicitor, accountant and any lender involved through the purchase and settlement process
Build and Settlement
For new builds, FAA manages the construction coordination and progress payment oversight
Management
Tenant placement and ongoing property management to maintain the investment within your SMSF
Initial Discussion
Understand your SMSF balance, structure and whether property investment may suit your fund circumstances.
Adviser Referral
Connect with specialist SMSF accountants and financial advisers for licensed advice on your specific situation.
Property Sourcing
Access new-build and house-and-land opportunities for your SMSF specialist to assess against your fund's requirements.
Cost Analysis
Receive a detailed cost analysis modelled within the SMSF structure, including fund cash flow and holding costs.
Acquisition Support
FAA coordinates with your solicitor, accountant and any lender involved through the purchase and settlement process.
Build and Settlement
For new builds, FAA manages the construction coordination and progress payment oversight.
Management
Tenant placement and ongoing property management to maintain the investment within your SMSF.
Result: A property that's sourced, funded, tenanted and managed by one Queensland team.
THE FAA INVESTMENT PATHWAY
The FAA SMSF Property Pathway
Your path from strategy to steady rental returns, step by step.
Initial Discussion
Understand your SMSF balance, structure and whether property investment may suit your fund circumstances.
Adviser Referral
Connect with specialist SMSF accountants and financial advisers for licensed advice on your specific situation.
Property Sourcing
Access new-build and house-and-land opportunities for your SMSF specialist to assess against your fund's requirements.
Cost Analysis
Receive a detailed cost analysis modelled within the SMSF structure, including fund cash flow and holding costs.
Acquisition Support
FAA coordinates with your solicitor, accountant and any lender involved through the purchase and settlement process.
Build and Settlement
For new builds, FAA manages the construction coordination and progress payment oversight.
Management
Tenant placement and ongoing property management to maintain the investment within your SMSF.
Result: A property that's sourced, funded, tenanted and managed by one Queensland team.
Important Compliance Notice
Understand whether SMSF property may suit your circumstances and seek appropriate licensed advice before making a decision. FAA Property does not provide personal financial advice, tax advice, SMSF compliance advice or legal advice. All information on this page is general in nature and should not be relied upon as the basis for any investment decision. You must consult with a licensed financial adviser, SMSF specialist accountant and solicitor before purchasing property through your self-managed super fund.
EXPLORE
Related Investment Pages
Investment Opportunities Hub
See all the property types FAA sources for Queensland investors.
Learn moreInvestment Property Calculator
Get a cost analysis built around your SMSF structure and cash flow.
Learn moreNew Build Properties
New builds are commonly used for SMSF property purchases. Full depreciation and compliance-friendly.
Learn moreHouse & Land Packages
Fixed-price packages that can be structured for SMSF acquisition.
Learn moreUse Equity to Invest
Considering personal equity alongside SMSF? Both pathways are worth understanding.
Learn moreBook a Strategy Call
Talk to FAA about your SMSF property questions. No cost, no obligation.
Learn moreSMSF Property Investment: Frequently Asked Questions
Not necessarily. Your fund needs a documented investment strategy that includes property, enough money for the purchase and acquisition costs, and adequate cash flow to cover ongoing expenses beyond rental income. You must get licensed advice from an SMSF specialist before proceeding.
Not under a new arrangement. An LRBA entered into on or after 10 August 2026 to buy real property can only acquire business real property, and it has to stay business real property for the life of the LRBA. The lender makes no difference, whether bank, non-bank or related party. LRBAs are not banned outright: existing arrangements keep running and can be refinanced, and a binding contract exchanged before 10 August 2026 sits outside the change even where settlement or the LRBA happens later. A fund can still buy residential investment property outright with its own money.
For a residential investment property, a deposit is no longer the right question. From 10 August 2026 a fund can't enter a new LRBA to buy one, so it needs the full purchase price plus stamp duty, legal fees and establishment costs, all from within the SMSF. Where an LRBA is still available, on business real property, or where the fund already had one in place before 10 August 2026, the lender's requirements depend on the lender and the property.
No. Residential property held by an SMSF can't be lived in by fund members, their relatives or any related party. It must be leased to an unrelated third party.
Once the LRBA is repaid, the SMSF can take legal ownership from the holding trust without breaching super law. The renovation restrictions that applied while the borrowing was in place no longer apply. This is unchanged for arrangements already running, including those entered before 10 August 2026.
No. FAA provides general information and sources compliant properties. FAA doesn't give personal financial, tax or SMSF compliance advice. You need licensed advice from qualified professionals before making any SMSF property decision.
General information only. FAA Property does not provide personal financial advice, tax advice, SMSF compliance advice or legal advice. SMSF property investment is subject to superannuation laws, ATO regulations and compliance requirements. All projections and cost modelling are illustrative only. You must seek independent licensed advice from qualified professionals before making any SMSF property investment decision. FAA Property earns commissions from builders and developers when a property purchase proceeds.
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