What types of property can an SMSF loan be secured against?

• Residential – The SMSF loan is suitable for the purchase of a single residential investment property or to refinance an existing SMSF residential investment property loan.
• Commercial – Properties including but not limited to commercial, offices, retail shops and light industrial.
• Rural/Residential – Rural/Residential investment properties.

Residential Property: SMSFs can use an LRBA to borrow and invest in residential properties, provided the property is for investment purposes only. SMSF members or related parties cannot live in or use the property (e.g. a client cannot rent out the SMSF investment property to their sibling).

Commercial Property: SMSFs can also purchase commercial property, and this is a popular choice for business owners who may lease the property back to their own business at market rates.