Can I use my super to buy an investment property?

Mechanic: you set up an SMSF (trustee structure under SISA 1993), roll your super balance into it, then buy property in the SMSF's name using cash or an LRBA loan. The property must be for investment only, you can't live in it, and a related party (you, family) can't rent it. Single-asset rule applies: the LRBA can't fund renovations that 'change the character' of the asset.

Constraints: ATO + APRA both regulate SMSFs. Annual independent audit required. Trust deed must allow LRBA explicitly. Lender choice is narrow, most majors don't offer SMSF loans; specialist lenders charge ~50-100bps premium with 70-80% LVR cap. SMSF auditor must sign off the LRBA structure (see ATO SMSF Ruling SMSFR 2012/1).

Costs: SMSF setup ~$2-3K, ongoing accounting + audit ~$3-4K/year, LRBA bare trust setup ~$1-2K. So fixed costs of ~$5K/year before any property cashflow. ATO advises against SMSFs with balances under $250K because these costs become a meaningful drag on the small balance.

Tax shape: rent + capital gains taxed at SMSF concessional rates (15% during accumulation, 0% during pension phase). But you can't claim negative-gearing losses against your salary income, losses are quarantined within the SMSF. So negative-gearing the asset doesn't deliver the personal tax benefit non-SMSF investors get.