How George and Yasmin Can Use Their SMSF to Buy Property: Strategy & Structure Explained

George and Yasmin have no personal savings and a high debt load, yet they hold $250,000 in superannuation. By setting up a Self-Managed Super Fund (SMSF) and using a limited recourse borrowing arrangement (LRBA), they can leverage their super balance to acquire an investment property and generate rental income.

Key Financial Facts

Superannuation: $250,000
Combined Income: $322,117 p.a.
Liabilities: $2.12 million total (mortgage, personal loan, credit cards)
Cash Flow: Slightly negative

SMSF Property Plan

1. Set Up the SMSF

Establish the SMSF using a corporate trustee structure. Estimated costs are $2,800 for setup and $2,000–$3,000 per year for audit and compliance.

2. Target Investment

Identify a $500,000 property—such as a unit in Canberra or a high-yield regional town. Use $100,000 from the SMSF as a deposit and borrow $400,000 via an LRBA. Projected gross rent is around $500 per week.

3. Contributions & Cash Flow

Combine rental income with concessional contributions (~$3,167 per month) to service the loan repayments. After SMSF fees and property management expenses, the fund could net a surplus of approximately $917 per month.

Action Plan

Pay off $23,000 in credit card debt to free up ~$690 per month.
Establish the SMSF and corporate trustee.
Draft an investment strategy targeting 40–60% property, 20–30% equities, and 10–20% cash.
Source the property and secure an LRBA loan.
Allocate ~$118,500 for deposit and associated costs.
Maintain liquidity and compliance within the SMSF.

Financial Structure for Property Investment via SMSF

Ready to use your super to invest in property? Talk to our SMSF specialists today and unlock your retirement potential.

Discover the #1 tax secret wealthy Australian property investors use to grow their portfolios faster — even in a high interest rate environment.

Learn how to turn wear and tear into wealth
See real examples of $15,000+ first-year deductions
Understand how to structure your purchases for maximum after-tax ROI

Download Your Free Wealth Building Guide

This ebook reveals how to legally slash your tax bill while building long-term wealth through property. Learn the strategies savvy investors use to gain an edge — even before settlement.