Disclaimer: This article is for informational purposes only and does not constitute financial advice. The trends discussed here are based on observations among the TMAP student base. Always consult with a qualified financial advisor before making investment decisions.

In recent years, a significant trend has emerged among property investors: the use of Self-Managed Super Funds (SMSF) to purchase property. This strategy has gained popularity due to its potential tax benefits and the opportunity to diversify investment portfolios. But what is an SMSF?

An SMSF is a private superannuation fund that you manage yourself. It gives you more control over your retirement savings and investment choices, including the ability to invest in property.

Two Streams of Investment

Many property investors are now running two parallel investment streams:

  1. Outside of Super
  2. Inside their SMSF

This dual approach allows them to build their property portfolios more rapidly and potentially benefit from different tax treatments.

Tax Benefits

One of the main drivers behind this trend is the significant tax advantages of holding assets within an SMSF. As investors transition into the pension phase of their SMSF, the tax benefits can be substantial. Many find these benefits to be “mind-blowing” once they fully grasp the implications.

Investors are increasingly viewing SMSFs as a smart way to build wealth for their families. The ability to potentially receive tax-free income in retirement from assets held within the fund is particularly attractive.


It’s important to note that borrowing capacities within SMSFs are often lower than for standard investment properties. This is due to slightly higher interest rates for SMSF loans, as well as higher assessment rates used by banks to evaluate loan affordability

Many investors are choosing to work with buyer’s agents when purchasing property through their SMSF. This professional help can be valuable in navigating the complexities of the process and finding suitable properties.

Despite the challenges, there are still plenty of opportunities in the property market for SMSF investors. Many are finding value at the lower end of the market, where there’s potential for growth.

The Importance of Professional Advice

As investment situations become more sophisticated, it’s crucial to work with a good tax accountant. Regular communication with tax specialists can help investors make informed decisions, understand the tax implications of their investments and potentially reduce their tax burden. Successful property investment of any kind requires a team of professionals, a property circle if you will, including:

  • SMSF specialists
  • Tax accountants
  • Buyer’s agents
  • Property managers

Regular communication with these experts can help ensure that investment decisions align with long-term goals and take advantage of all available benefits.


The trend of using SMSFs to buy property is gaining momentum among investors looking to diversify their portfolios and potentially benefit from tax advantages. However, it’s a complex strategy that requires careful consideration and professional advice. As with any investment decision, it’s essential to do thorough research and consult with qualified professionals before taking action.

Remember, while the potential benefits can be significant, SMSFs come with responsibilities and risks. It’s crucial to understand all aspects of this investment strategy before deciding if it’s right for you.