Thinking about buying property in your SMSF

Are you thinking about purchasing a property in your Self Managed Super Fund (SMSF), or setting one up so that you can purchase a property with your Super money?

We had a chat with Stephen Hall from EPS Property Search’s Queensland office, who specialises in helping interstate and out of area buyers to purchase residential real estate in Brisbane, and on the Gold Coast, and these were his thoughts on the topic.

“Most of the switched on EPS Property Search clients who have purchased direct residential real estate for investment purposes with their Self-Managed Superannuation Fund (SMSF) over the years, have done so with around 30% or less of their available super balance, which allowed them to keep a balanced spread of investments, including direct shares, and cash. Plus, by using no more than 30% of their balance, this allowed them to retain a solid financial buffer, which could cover any unexpected expenses that may arise in the future.”

“I’ve spoken with many people who have purchased property through their SMSF, and sadly, most of them regret it. They tend to have made one or more of the following mistakes with their purchase.

  • Firstly, like most people who don’t have dozens of property transactions over many years under their belt, they are novices with regard to property investment. Often they made a poor choice with property selection, and purchased a brand-new house and land package, or an off-the-plan apartment that didn’t perform as they expected.
  • They typically used almost all of their Super balance to fund just one property purchase, and they also overpaid at the time of purchase.
  • In several cases these properties were sold a decade later for less than what they initially paid for them.”

“I would urge anyone considering purchasing property with their SMSF to approach this idea with caution, and they should thoroughly investigate what upfront and ongoing administration costs are involved to establish and maintain the SMSF, as it’s quite significant. Further I have observed that financing a property through super can be a complex process, and there is no avoiding the ongoing annual cost of SMSF tax returns and audits.”

Well there you have it, if you are now having second thoughts about using your Super for a real estate purchase after hearing what Stephen had to say but are still interested in buying a home or investment property on the Gold Coast I suggest you give Stephen Hall a call on 0410 500 374 or you can email him at


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