The requirements for SMSF loans when purchasing a property are specific and include:

  1. Residency Restrictions:
    • Trustees or individuals related to trustees are prohibited from residing in residential properties purchased through the SMSF.
    • ¬†Renting out properties bought through the SMSF by trustees or related individuals is also not allowed.
  2. Property Ownership Restrictions:
    • The SMSF is restricted from buying properties already owned by a trustee or anyone related to the trustee.
  3. Sole Purpose Test:
    • The property purchase within the SMSF must align with the ‘sole purpose test,’ which mandates that the primary goal of the investment is to provide retirement benefits exclusively to fund members.

Additionally, it’s important to note that an SMSF can have up to six members, all of whom must act as trustees. Consequently, each member bears equal responsibility for the fund’s decisions and its compliance with relevant laws.
These requirements ensure that properties purchased through SMSFs adhere to specific guidelines and purposes, focusing primarily on the provision of retirement benefits to fund members while outlining restrictions to prevent conflicts of interest or misuse of the investment.

For more information call us on 0410 598 828 or email us on for free mortgage health checkup or for any loan enquiries.