You can invest in property through a self-managed super fund (SMSF). You may be able to invest in property indirectly through listed property trusts or as part of a large diversified portfolio that invests in certain types of property such as infrastructure or commercial property.
SMSFs can invest directly in residential and commercial property.
An SMSF can buy business premises or investment properties. As trustee of your SMSF (or a director of the corporate trustee of the SMSF), you have greater control over which property (or properties) your fund invests in. You choose which property to buy, manage the rent and any expenses and decide when to sell.
Before your SMSF buys property, you need to understand superannuation law and other relevant laws in this area. Importantly, the SMSF’s trust deed must enable you to buy property, and property must form part of your fund’s investment strategy. There are also restrictions on who you can buy property from and who it can be rented to.
We recommend that you speak with a financial adviser to help you decide if buying property through your super fund is right for you.