Buying Property With SMSF
Most Australians think of their super as a slow, steady growth vehicle. But what if your super could work harder?
With an SMSF, you can use one of the most powerful strategies available — property leverage.
Done right, it can supercharge your retirement savings and put you years ahead of schedule.
What Is Property Leverage in SMSFs?
An SMSF can use what’s called a Limited Recourse Borrowing Arrangement (LRBA). This means your SMSF can borrow money to purchase an asset — usually property.
Instead of only investing the cash you have, you’re now accessing a higher-value property with both your SMSF balance and borrowed funds.
For example:
Without leverage: $200,000 in Industry Super = $200,000 to invest
With leverage: $200,000 in SMSF + $800,000 borrowed = $1,000,000 to invest and generate returns from.
That extra $800,000 gives you access to higher-quality investments (property), more rental income, and stronger capital growth.
Why Industry Super Funds Can’t Compete
Industry funds don’t allow borrowing. Their members are limited to pooled investments — meaning no direct property leverage.
That means:
No access to larger, higher-quality assets.
No ability to magnify growth.
Lower flexibility in retirement planning.
The Impact
Imagine two people both with $200,000 in super.
Person A stays in an industry fund. Their balance grows at 7% per year.
Person B uses an SMSF, leverages into a $1,000,000 property, and enjoys growth of 7-10% on a bigger base.
After just 5 years, Person B could be ahead by up to $500,000 without contributing extra cash.
Key Risks to Consider
Borrowing amplifies both gains and losses.
Cash flow is required to service the loan.
Proper advice and compliance are essential.
Conclusion
Leverage isn’t about gambling — it’s about using smart financial structures to give your super a boost. With the right property and tax strategy, SMSF leverage can be a powerful driver of long-term wealth.
Do you need a team in your corner doing this for you?
👉 Ready to see if leverage could accelerate your retirement?
We're the ARO
At the Australian Retirement Office (ARO), our mission is simple: to help Australians retire better.
We believe retirement shouldn’t be left to chance or hidden inside industry super funds with limited control. For decades, Australians have built wealth through property, business, and smart tax strategies. That’s exactly what we help our clients bring into their super.
With a focus on clarity, control, and confidence, ARO provides education and strategies that put the power back in your hands, so you can retire on your terms.
Download the 200K SMSF Case Study
At the Australian Retirement Office (ARO), our mission is simple: to help Australians retire better.
We believe retirement shouldn’t be left to chance or hidden inside industry super funds with limited control. For decades, Australians have built wealth through property, business, and smart tax strategies. That’s exactly what we help our clients bring into their super.
With a focus on clarity, control, and confidence, ARO provides education and strategies that put the power back in your hands, so you can retire on your terms.
www.ausretirementoffice.com.au