Wednesday, 18 December 2013 02:44

Investing in property through a super fund smsf

Written by 
Rate this item
(0 votes)



The Australian residential property market has shown a 5.3 per cent annual growth in sales with a 4 per cent growth in the quarter ending August 2013. The historic low cash rate of 2.5 per cent has been evidently driving the current market statistics. However, other market statistics showed a 4.7 per cent fall last month in new home sales. This was the first decline since January 2013. Australian capital city dwelling values grew by 0.5 per cent in August 2013. This growth can be attributed to the increased affordability, rising demand from the increased population and decreased supply from credit-constrained property developers.

Investments in property can be made either directly through the purchase of specific buildings or structures, or indirectly through either listed or unlisted property trusts. Trusts are an effective investment vehicle for SMSF trustees who want to create a diversified property portfolio, because direct property investments require significant funds.




Real estate investment trusts (REITs)

Commercial (business real property)         

Unlisted property trusts
Related party unit trust (reg 13.22C trust)
Unrelated unit trust (can be geared)

Direct property investment

Direct property investment is the direct purchase of specific properties by the trustee on behalf of the SMSF. The super fund has direct control of the asset. The fund receives rental or lease income and the fund is responsible for maintaining the property. The rental or lease agreement is between the super fund and the tenant. Direct property cannot be purchased from a related party unless it is classified as business real property (BRP). Related Party tenants are only allowed under the Superannuation Industry (Supervision) Act 1993 (SISA) if the property is business real property.


Residential Property

Commercial Property (BRP)

Buy within a SMSF



Rent it to a related party



Transfer existing property into SMSF



Property Development



Indirect property investment

SMSFs can invest in property indirectly either by purchasing units in an unlisted property trust or through Real Estate Investment Trusts (REITs).

Unlisted property trusts

An unlisted property trust is where a group of investors pool their money under a trust structure and the property is bought under the trust name. A SMSF can acquire units in a unit trust to acquire a share of a property indirectly. This strategy is commonly used where a SMSF has insufficient capital to acquire a direct property asset.

If the other unit holders of the trust are related to the trustees of the SMSF then the unit trust MUST be un-geared meaning there cannot be any borrowings within the trust and the underlying assets of the trust cannot be used as security for any borrowings. This is to comply with SISR 13.22C.


However, where each unit holder of the trust is unrelated or holds a 50 per cent or less interest in the trust, borrowing can occur within the Trust (and a charge taken over the property). This can create an opportunity for property development.

Read 290869 times Last modified on Monday, 04 June 2018 03:38
Sinan Demir

Sinan graduated with a degree in Bachelor of Commerce, majoring in Accounting and Commercial Law, and is currently a fully qualified CPA.

Sinan has over 18 years of accounting experience, and has a wealth of knowledge in accounting and tax matters, relating to small to medium enterprises.



  • Comment Link Show Girls Monday, 23 July 2018 22:09 posted by Show Girls

    video chat adult chatroom sex talk sex chatroom teen webcams chaturbate mature webcam asian teen cams chat rooms free chat rooms chat room com webcam chat rooms

  • Comment Link Porn Live Chat Monday, 23 July 2018 21:37 posted by Porn Live Chat

    web cam girls webcam slut sex chat live cam girls teen chat rooms chat rooms chat rooms free adult cam free porn cams adult webcams free webcams masturbation cam

  • Comment Link Sex Web Cam Monday, 23 July 2018 20:57 posted by Sex Web Cam

    free live porn free live sex live porn chatroulette girls mature live cam webcam chat rooms webcam sex chat random cam webcam porn teen cam camskip teen webcams virtual sex porn free sex chat rooms hot show porn gay chat rooms free chat free chat free chat free chat free live sex chat girl cam free live sex chat free live sex cams sex chatroom free live girl webcam teen cam sexchat

  • Comment Link Mature Cams Monday, 23 July 2018 20:24 posted by Mature Cams

    sex chat rooms teen chat rooms webcam chat rooms wife cam adult cam chat adult chat room cam girl porn chat rooms free cams webcam teens webcam girl how to fuck my wife my free web cam virtual sex video my free web cam my free web cam cam to cam free sex video cam to cam cam to cam chat sex dirty chat erotic chat erotic chat

  • Comment Link Online Payday Loans Monday, 23 July 2018 20:13 posted by Online Payday Loans

    payday loan lenders money lender payday loan direct lender loan lenders

  • Comment Link Chat Sex Monday, 23 July 2018 20:11 posted by Chat Sex

    teen cam teen webcams teen cam teen webcams live sex cams teen cam live nude cams webcam with girls chat sex chat room myfreewebcams teen pussy webcam webcam teens webcam teens webcam teens adult video chat aol chat rooms adult sex chat free adult sex chat

  • Comment Link Milf Show Monday, 23 July 2018 19:48 posted by Milf Show

    senior adult chat 50 free sex cam free sex cam my free web cam free live sex free live sex chat free live sex free live cams live porn cam webcam girl webcam girl webcam girl teen webcams teen webcams porn cams teen cams live girls cam girls girls live chatterbate free sex chatting mature cams mature cam mature cam porn cams porn cams chat porn free adult webcam

  • Comment Link Live Free Sex Chat Monday, 23 July 2018 19:41 posted by Live Free Sex Chat

    live cam girls girls live live cam girls cam girls xxx chatrooms free sex chat free adult sex chat free sex chat teen webcams camgirl videos omegle adult porn cams wicked cams webcam sex chat virtual sex spankbang senior adult chat 50 live cams free live cams live porn cams

  • Comment Link Online Loan Monday, 23 July 2018 19:30 posted by Online Loan

    payday loan direct lender payday loans calculator lender loan lenders

  • Comment Link Free Porn Cams Monday, 23 July 2018 19:20 posted by Free Porn Cams

    chat rooms free sex chat rooms sex chat rooms sex chat rooms sex talk girls live cam to cam sex talk free webcams camdolls cyber sex chat free adult cam

Leave a comment

Make sure you enter the (*) required information where indicated. HTML code is not allowed.

Complete the Challenge!
Protected by Joo EasyMath =