How savvy Australians are using their super to invest in property – and seeing powerful results.
Since 2007, Australians have had the opportunity to invest in property using their Self-Managed Super Funds (SMSFs). For investors who value control, transparency, and long-term growth, it’s become one of the most compelling retirement wealth-building strategies available.
But like any sophisticated investment approach, the real power of this strategy lies in smart structuring and expert guidance.
Leverage: Your Super’s Secret Weapon
Using borrowed funds through your SMSF – what’s known as a Limited Recourse Borrowing Arrangement (LRBA) – enables you to unlock the kind of growth that would otherwise take decades.
Here’s what makes this strategy so powerful:
- Buy sooner, grow faster: Borrowing allows your SMSF to purchase property beyond its current cash capacity, accelerating your entry into the market.
- Boosted returns: If your property increases in value, your leveraged returns can far outperform traditional super investments.
- Diversification: Property can balance portfolios heavily weighted in shares or cash.
- Tax efficiency: Rental income and capital gains can be tax-free in the pension phase; loan interest and related expenses may be deductible in accumulation phase.
- Income and capital growth: A well-located property can deliver strong rental income and long-term capital appreciation, both inside your super.
Expert Tip: Property selection is everything. An experienced buyer’s agent can help identify the right property in the right location, tailored to your goals.
SMSF Property Investment: Risks to Consider
Leverage amplifies both gains and losses, so it’s vital to understand the risks and how to manage them:
- Interest rate movements can affect cash flow.
- Market volatility can impact property values.
- Regulatory compliance is non-negotiable, SMSFs are tightly monitored, and mistakes can be costly.
The Solution? A qualified SMSF specialist and property advisor will ensure your investment is legally compliant, financially sound, and strategically aligned with your long-term goals.
The Five-Step SMSF Property Journey
Thinking of taking the next step? Here’s how the process works:
- Set Up Your SMSF
- Seek advice from a licensed financial adviser.
- Draft a compliant trust deed.
- Register the fund with the ATO and open a bank account.
- Develop a sound investment strategy aligned with your retirement goals.
- Identify the Right Property
- Work with a qualified buyer’s agent.
- Ensure the property meets legal and strategy requirements.
- Get an independent valuation and expert legal advice.
- Borrowing via an LRBA (Limited Recourse Borrowing Arrangement)
- Set up an LRBA with a separate bare trust.
- Ensure all entities are correctly structured (SMSF trustee ≠ bare trust trustee).
- Enter into a compliant loan agreement.
- Finalise the Purchase
- Use the correct entity names on the contract of sale.
- Settle and transfer ownership to the bare trust, with your SMSF as the beneficial owner.
- Ongoing Management & Compliance
- Collect rent and pay expenses through the SMSF bank account.
- Conduct annual audits and ensure ongoing compliance with ATO rules.
- Review the investment regularly to ensure it continues to serve your strategy.
Key Considerations Before You Start
- Upfront & Ongoing Costs: Setup, legal, loan, and compliance costs can be significant.
- Liquidity Needs: Property is illiquid, make sure the fund can meet all obligations.
Professional Guidance is Essential: This strategy is powerful but complex. Professional advice is non-negotiable.
Case Study: $310K Property Delivers 45% Growth in 2.5 Years
Case Study: $111K in Super Transformed into $1.175M Portfolio & $334K Equity in 3 Years
In late 2021, inSynergy worked with this investor to explore how their existing superannuation could be better utilised for long-term growth and wealth creation and to get a foot in the property market. With our guidance, they used $111,000 entirely from their SMSF to purchase a recently completed two-bedroom apartment in Adelaide for $310,000.
Fast forward to 2025:
- Sold for: $495,000
- Time held: 3 years
- Return on Investment (ROI): +346%
- Compound Annual Growth Rate (CAGR): 61.4%
Reinvested to Build a Larger, Diversified Portfolio
The proceeds from the sale are now funding three new properties, forming a $1.175 million portfolio:
- An established property in a high-growth metro market.
- An off-the-plan property using a $6,400 deposit bond.
- A long-term off-the-plan property secured with just a 5% cash deposit.
These acquisitions span diverse locations and property types, carefully selected for capital growth, strong rental yields, and compliance with SMSF requirements.
Current Equity Position: $334,000 and Building
With the help of:
- a positively geared rental stream,
- regular super contributions, and
- disciplined reinvestment of capital gains,
the client’s SMSF now holds $334,000 in equity, providing a powerful buffer, enhancing borrowing capacity, and setting the foundation for future growth.
Callout: It started with one property and zero out-of-pocket funds. Three years later, this client has a million-dollar portfolio and over $300,000 in equity, all inside super.
How Did This Strategy Stack Up Against the Share Market?
Had this investor placed their $111,000 into the ASX 200 Index over the same period, their portfolio might now be worth around $140,000, assuming average market growth of ~8% p.a.
With inSynergy’s strategic advice, they have achieved 3.5x greater return on their initial investment and an 8.3x higher return based on their current portfolio value.
Why the Difference?
- Property returns were amplified by leverage, using the SMSF’s borrowing power under a Limited Recourse Borrowing Arrangement (LRBA).
- Rental income and super contributions helped grow equity faster.
- The investor was guided by experts to target high-growth, high-yield locations that outpaced broader market trends.
On their current trajectory, and with up to 20 working years ahead, this client is on track to build a property portfolio worth $10 million or more, a goal they once thought was out of reach. Partnering with inSynergy has not only made this possible, but has given them a clear, strategic path to long-term financial freedom.
This case study highlights the exponential effect of combining strategic leverage, rental income, and smart reinvestment inside a tax-efficient SMSF, all without additional personal capital.
Start Building a Smarter Retirement Today
At inSynergy Advisory, we specialise in helping investors grow their wealth safely through science backed, data driven property investment – including through SMSFs.
Our experienced team can guide you through every step, from setting up your SMSF to finding high-growth, high-yield properties that align with your goals.
Book your free, no-obligation initial consultation with one of our expert Property Wealth Planners to discover if this approach is right for you.
Start building a smarter, more secure retirement.
Book a free consultation with one of our expert Property Wealth Planners and discover how SMSF property investment could reshape your financial future.
www.insynergy.net.au | 1300 425 595 | Suite 8, Level 1, 22 Darley Road, Manly