Who can buy property in super?

The first thing you will need to do to buy property with your super is to establish a Self-Managed Super Fund (SMSF).

To be a member of your own Self-Managed Super Fund you must meet the following criteria:

  • Be 18 years or older,
  • An Australian resident,
  • Not bankrupt, and
  • Have no criminal record relating to dishonesty offences

Balance requirements for a property purchase in SMSF

With the recent changes to the Bank’s lending policies, all members will now need a combined minimum super balance of between around $150,000 to $200,000 to get started or approximately 40% of the intended property purchase price.

For a better understanding of how borrowing within an SMSF differs from the standard home loan, see the article Borrowing within an SMSF: The 3 Major Differences to your Typical Home Mortgage.For specific lending requirements seek advice from an experienced SMSF mortgage broker to calculate your fund’s borrowing capacity.

Who can buy property in smsf?

You can combine Superannuation balances

You can have up to 4 members of an SMSF and effectively pool your resources to buy larger assets. And whilst we usually see a husband and wife team, the four members can be siblings, adult children, friends or really anyone who’s eligible.

Individual Superannuation balances and performances are easy to track

Each member’s relative balance is quarantined within the fund so you’re always able to identify individual balances, even when there’s borrowing involved.

Property inside SMSF can offer income, capital growth and tax deductions. Good investment selection when buying property using your super can ensure a positive cashflow to the SMSF without members needing to make additional contributions. Not all property is appropriate for SMSF.

For a more detailed discussion about property investing using your Superannuation funds, register for a Free SMSF Consult.

This article is an excerpt from The Beginners Guide to Successful Property Investing Using Superannuation Funds, you can download the ebook version here.

What our clients say…

We just wanted to take this opportunity to personally thank you and your team for your great work sorting out our financial situation, and in particular the ease of management and peace of mind you have given us. The level of service and attention to detail has been excellent. We now have direction and a clear vision of our finances, confident they are structured in the best possible way.

With a young family we chose Nexus to ensure that the financial decisions we make today will be the most rewarding for our families future. From our first consultation Nexus has not disappointed with an exceptional team that are competent, knowledgeable and understanding. We are so glad we are part of the Nexus family.

After many hours of searching for financial advice within the Brisbane city, I was left with very little to choose from at a professional level. I came across the Nexus page and started researching. I liked what I saw and found it very user-friendly. Nexus offered us first class service with no hidden costs and was hassle free from the beginning. We have every confidence in the team at Nexus to help us create wealth and guide us to a healthy investment portfolio. With no hesitation whatsoever, the team at Nexus is highly recommended.

Our Clients

Need more information? No problem.

A short phone call is all it takes to find out how our advice can help you improve your financial position.

  • If you’ve been discussing your goals and finances, and someone you know is curious, let us know!

    Call us on: 1300 473 347 or share their details below…

  • Your Details

  • Existing Client?

  • Referral Details

  • This field is for validation purposes and should be left unchanged.
  • Free Tax Efficiency Review

    Yes, I want to assess the tax efficiency of my personal finances…

  • This field is for validation purposes and should be left unchanged.
  • Yes, I want to know more about buying property using my super!

  • This field is for validation purposes and should be left unchanged.