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  • Writer's pictureLockwood & Ward

3 Reasons to Invest in Property with your Super

Updated: Feb 7, 2020

Investing in Australian property can seems beyond your reach, especially for those in Sydney. But did you know that you can use a self managed super fund (SMSF) to buy property through your super – whilst potentially boosting your retirement savings at the same time?

1. Diversify your Fund assets

A major benefit of SMSFs is that they offer a wider range of investment options compared to traditional super funds. By distributing your savings across asset types, you may help reduce risk while still investing for growth.

2. Potentially save on tax

SMSFs can use negative gearing to claim a deduction for borrowing expenses, similarly to individuals. Not only that but investing through your SMSF opens up other tax advantages, for example rental income paid to your SMSF is generally taxed at just 15%. And if you are over 55 and commence a Pension in your SMSF, then the rent you receive is tax free. But most importantly, after commencing a Pension in your SMSF, any capital gain when you sell the property is also tax free!

3. Build a bigger portfolio sooner

Investing through an SMSF can help you step up your portfolio game. An SMSF can borrow to invest in either residential or commercial property. Often lenders are willing to fund up to 70% or 80% of the purchase price, so you can take advantage of low interest rates to build a bigger portfolio now to potentially earn more income and capital growth in the future. So long as your returns exceed the borrowing costs, you’ll come out on top.

If you are looking to set up an SMSF or wish to speak to our independent Financial Planner, phone our office on 02 9299 7044 or send your enquiry to

Important note: this information is based on opinions and information obtained from various sources deemed reliable. However, it is of a general nature and has been prepared without taking account of anyone’s financial situation, objectives or needs. Before making any investment decisions based on the contents you should obtain professional advice

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