Can an SMSF Still Invest in Property? Your Options When You Cannot Borrow
New SMSF loans for residential property have stopped, but there are other ways a fund can invest in property. Here is a plain run-through.
The short version
- From 10 August 2026, a new SMSF loan can no longer be used to buy residential property. A new loan can only be used for business real property.
- An SMSF can still invest in property without borrowing, and in other ways such as property syndicates and unit trusts.
- Richard does not give advice on these investments. He can refer you to partners who can.
- Your SMSF accountant or solicitor should be part of the conversation. Investments carry risk and returns are not guaranteed.
If the loan route has closed, where does that leave your SMSF? Here is a plain run-through of the options people ask about, and who can help with each.
What has stopped, and what has not
| Option | Where it stands |
|---|---|
| New SMSF loan to buy residential property | Restricted from 10 August 2026 |
| Existing SMSF loan from before 10 August 2026, and refinancing it | Not affected |
| Buying property with the fund’s own money, no loan | Not covered by the new loan rules. Your trust deed and investment strategy still apply |
| Loan to buy business real property | Still possible with specialist advice |
Other ways an SMSF can invest in property
Some funds invest in property without owning a whole property themselves. Common examples are:
- Property syndicates. A group of investors pools money to buy a property or a portfolio, run by a manager.
- Unit trusts. Investors hold units in a trust that owns property.
- Listed property trusts. Property trusts that are traded on the share market.
We have not covered these options in full, and none of them suits everyone. Each has different risks, fees, and ways to get your money out. A licensed adviser can explain how they fit your fund.
Things worth asking before you invest
- Does my trust deed allow it, and does it fit my fund’s investment strategy?
- What are the fees, and what are the risks?
- How easily can I get my money out if I need it?
- How does it sit alongside the rest of the fund, so it is not all in one place?
Richard is a mortgage broker, so he looks after the lending side. He does not give advice on investments like syndicates or unit trusts and does not arrange them himself. If you would like to explore them, he can refer you to partners who work in this area and can give you advice. You speak with them directly.
If your SMSF already holds property and you would like to check your loan, our SMSF page explains how a refinance review works.
Your next steps
- Talk to your SMSF accountant or solicitor about your options.
- Check what your trust deed and investment strategy allow.
- If you want a referral to partners who can advise, get in touch with us.
- If you already have an SMSF loan, ask us to review it.
Sources and when we checked
Checked on 19 October 2026. Sources: Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Royal Assent 26 June 2026); Australian Taxation Office, “Changes to LRBAs for property from 10 August”. Rules, rates and lender policies can change, so confirm with the official sources and your own advisers. This is general information only and is not financial, tax or legal advice.
Want to talk it through?
Book a chat with Richard. He will listen first, then explain your options clearly. No pressure, no jargon.
This article is general information only and does not take into account your personal financial situation, needs or objectives. Consider whether it is appropriate for you before acting on it. Figures and rules can change, so always check the latest details with the relevant authority.
Richard Morris is a Credit Representative (CRN 570376) of Strategic Mortgages Perth (ACR 570592), authorised under Connective Broker Services Pty Ltd (Australian Credit Licence 389328). This is not tax or legal advice. Please speak to your accountant or solicitor about your own situation.