An SMSF loan lets a self-managed super fund borrow to buy property through a limited recourse borrowing arrangement. The property is held in a separate bare trust and the lender's recourse is limited to that asset alone, protecting the fund's other holdings. Rent and contributions service the loan, and all income and expenses stay inside the fund.

Logan attracts SMSF residential investment for its yield profile, with median weekly rent across the LGA recorded at $350 at the 2021 Census against relatively low entry prices in the established suburbs.

Logan business owners also use the structure to buy industrial or workshop premises and lease them back to their own trading entity.

This is general information, not financial advice. See our SMSF loans page.

SMSF lending is conservative. Most lenders cap residential SMSF loans at 70% to 80% of value and commercial at 60% to 70%, so the fund needs substantial existing assets before it can transact.

Lenders also require a liquidity buffer, commonly wanting the fund to retain a percentage of its balance in cash or liquid assets after settlement, so the property is not the fund's entire position.

Serviceability is assessed on projected rent plus ongoing member contributions, and the contribution history needs to be consistent rather than occasional.

Costs run higher than standard lending, including bare trust establishment and additional legal work, and the field of active SMSF lenders is much smaller than for standard loans. We compare that smaller field and quantify the full setup cost upfront. Call 1800 774 756.

For residential property, generally no. An SMSF cannot acquire residential property from a related party, and members or their relatives cannot live in or holiday in a fund-owned residential property, even at market rent.

Business real property is the exception, and it is the reason the strategy is popular with Logan business owners. An SMSF can buy commercial or industrial premises from a related party and lease them back to a member's business, provided the transaction occurs at market value and the lease is genuinely at arm's length with rent actually paid.

That makes warehouse and workshop stock through Slacks Creek, Berrinba and the Yatala corridor a common target for local funds.

Breaches carry serious penalties. This is general information only; confirm compliance with your SMSF adviser before proceeding.

Benefits include concessional tax treatment on rental income inside the fund, potentially reduced or zero capital gains tax if the asset is sold in pension phase, limited recourse protection for the fund's other assets, and the ability to hold business premises within super.

The risks are real. SMSF property is illiquid and cannot be sold in part, concentration risk is high if one property dominates the fund, lending costs and rates exceed standard loans, and trustees carry compliance obligations with meaningful penalties.

A vacancy or a major repair bill must be met from fund assets, not personal funds, which is where poorly capitalised funds run into trouble.

This is general information, not financial advice. Cube Home Loans provides the lending; your licensed adviser must assess whether the strategy suits your fund.