Can You Invest in Property with Your Super? | SMSF & Property Investing Explained

Are you wondering if you can use your super to invest in property? In this episode of The Property Nerds Podcast, Arjun Paliwal, Founder and Head of Research at InvestorKit, and Jack from Fara Financial, deep dive into Self-Managed Super Funds (SMSFs) and how Australians can leverage them for property investment.

With rising interest in alternative ways to grow wealth for retirement, SMSFs are becoming a hot topic — but there are key rules, risks, and opportunities every investor should know before jumping in.

💡 What Is an SMSF and How Does It Work?

A Self-Managed Super Fund (SMSF) allows Australians to take control of their superannuation and invest it in assets beyond traditional managed funds — including property.

In this episode, Arjun and Jack explain:

• What an SMSF is and how it differs from industry or retail super funds.
• Who can set up an SMSF and what kind of assets can be purchased.
• The benefits and responsibilities of running an SMSF, including compliance, audits, and management.

👉 “Running an SMSF gives you flexibility, but it also comes with serious responsibility,” Jack warns.

🏠 Can You Buy Property with Super?

Yes — but there are strict rules. The podcast covers:

• What types of property can be bought inside an SMSF.
• Why residential property you or family live in is not allowed.
• How to structure property purchases, including borrowing inside an SMSF (Limited Recourse Borrowing Arrangements – LRBAs).
• The minimum SMSF balance typically recommended before considering a property purchase.

💡 “You don’t want to use all your super just to buy one property. Diversification is key,” says Arjun.

💰 Borrowing Through an SMSF: What You Need to Know

Jack shares expert insights on SMSF borrowing rules, including:

• How much you can borrow to buy property in an SMSF.
• Lender requirements and higher deposit needs (often 30%-40%).
• Why loan terms are stricter than regular investment loans.

“Banks are cautious when lending to SMSFs — and rightfully so, because this is your retirement money on the line,” Jack highlights.

⚖️ Pros and Cons of SMSF Property Investing

Advantages:
✅ Tax benefits (e.g., concessional tax rate inside super).
✅ Direct control over investment choices.
✅ Potential for capital growth and rental income in retirement.

Risks & Disadvantages:
⚠️ High compliance burden (audits, legal requirements).
⚠️ Limited diversification if using all funds for one property.
⚠️ Higher upfront costs to set up and maintain SMSF.

Arjun and Jack emphasize the need to work with the right professionals — accountants, SMSF specialists, and buyers’ agents — to avoid mistakes.

🔑 Who Should Consider SMSF Property Investing?

Not everyone should rush into SMSF property investing. The podcast outlines who this strategy is best suited for:

• Established investors with a higher super balance (often $200k+).
• Those comfortable with compliance responsibilities.
• Investors focused on long-term growth rather than quick profits.

📈 Why Market Timing and Property Selection Matter

Even within an SMSF, buying the right property, in the right location, at the right time is crucial.

Arjun shares how data-driven analysis should guide SMSF property purchases, covering:

• Growth corridors and high-demand areas.
• Rental yield considerations to ensure the property is SMSF-friendly.
• Avoiding emotion-driven decisions.

👉 “It’s not just about buying property — it’s about buying the right kind of property for your retirement,” says Arjun.

🎧 Listen to the Full Podcast

If you’re considering investing in property through your super, this episode is a must-listen, packed with actionable insights and real-world advice.

👉 Watch the full episode on YouTube: Can You Invest in Property with Super?

Or search for The Property Nerds on Spotify, Apple Podcasts, and other major platforms.

✅ Need Help with SMSF Property Investing?

If you’re thinking about buying property through your SMSF but don’t know where to start, InvestorKit can help. Our team of property experts works closely with SMSF professionals to ensure data-backed, compliant investments.

👉 Book a free discovery call and explore how you can use your super to build wealth for retirement.