What is SMSF?
A Self-Managed Super Fund (SMSF) is a private superannuation fund that lets members manage their own retirement savings and investments, including property, provided it meets the sole purpose test (retirement benefit only). An SMSF can buy residential or commercial property. To borrow for property, the fund must use a Limited Recourse Borrowing Arrangement (LRBA), where a separate bare trust legally holds the property and the lender’s claim is limited to that asset. The SMSF receives rent, pays expenses and the loan, and gains full title once the loan is repaid. This allows members to leverage their super for property investment.
