The Finance Algorithm

SMSF Property Investment Calculator

Compare buying property through your self-managed super fund (SMSF) against keeping the money in a diversified fund, including the August 2026 limit on borrowing for property.

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$400k

Combined super balance of all SMSF members

$
$500k

Purchase price of the property you're considering

$
$450

Expected weekly rental income

Since 10 August 2026 a new limited recourse borrowing arrangement (LRBA) can only be used to buy business real property, not residential property

%

What your SMSF lender offers to lend. Ignored if the fund pays cash.

%

Your lender's quoted rate. SMSF loans are priced separately from ordinary loans; the default is the RBA's average investor variable rate, 7.13%.

$

Stamp duty, legal fees, the bare trust and loan set-up costs, all paid by the fund

$

Council rates, insurance, property management and maintenance

$

Accounting, audit and the $259 ATO supervisory levy, from your quotes

%

An assumption, not a forecast - try higher and lower figures

%

What the rest of the fund, and the alternative, earns after tax. The default is APRA's median MySuper return over ten years, 8.03%.

15y

Years until the youngest member reaches preservation age

$
$50k

Combined annual contributions from all members (concessional + non-concessional)

The button asks our AI to explain these figures in words.

SMSF property: Cash purchase

Shortfall vs diversified

$5,875

@ 15yr horizon

Property share

100%

of the fund's net assets

Net cash flow (yr 1)

$13,515

after 15% earnings tax

LRBA loan

Cash buy

SMSF cash in: $400,000

Rent vs interest, compliance & tax

The highlighted bar is what the property adds to the fund each year after costs and tax.

$23,400Annual rent$0LRBA interest$7,500Property and fund costs$13,515Net after 15% tax

SMSF property vs diversified super

Same starting balance and contributions, on the growth and return assumptions you set.

$0$657,268$1,314,535$1,971,803$2,629,070Y0Y4Y6Y10Y12Y15
Warnings
  • The fund needs $525,000 for the deposit and purchase costs but holds $400,000.
  • The property would be 100% of the fund's net assets. The trustees' investment strategy must consider diversification and liquidity, including paying benefits.
Diversified super wins by $5,875
At $500,000 with no loan, the fund collects $23,400 of rent and pays $7,500 of property and fund costs, leaving $13,515 after the 15% earnings tax. With the property growing 4% a year and the rest of the fund earning 8.03%, after 15 years the property path reaches about $2,629,070, against $2,634,945 for a diversified fund whose return is after its fees. Small changes to the growth and return assumptions can reverse the result.

How it works

An SMSF can own an investment property. Since 10 August 2026 it can only borrow to buy one through a new limited recourse borrowing arrangement (LRBA) if the property is business real property, such as premises used wholly in a business; residential property has to be bought with the fund's own money. Net rent is taxed at the fund's 15% earnings rate, capital gains on assets held over 12 months get a one-third discount, and both can be tax-free once the property supports a retirement pension. Against that are the loan, the property's running costs, the fund's own costs, and having much of your super in one asset. This calculator runs your quotes and assumptions through to retirement and compares the result with keeping the same money in a diversified fund.

  1. 1Enter the fund's balance, the property price and the expected weekly rent.
  2. 2Choose cash, or an LRBA for business real property, with the loan share and rate your lender offers.
  3. 3Enter the purchase costs, the property's running costs and the fund's yearly costs from your quotes.
  4. 4Set the years to retirement and the contributions going in each year.
  5. 5Adjust the growth and return assumptions to see how sensitive the comparison is.

The figures today

The average new owner-occupier home loan was $842,000 in NSW and $664,000 in Victoria in the June quarter 2026, from the ABS. A two-bedroom unit on a new lease in NSW rents for a typical $785 a week.

House prices and loan sizesRents by postcode

Worked examples

Residential Property Bought With Cash

$700,000 in the fund, buying a $450,000 residential property that rents for $420 a week, with no loan. Purchase costs $22,000; property costs $4,000 and fund costs $3,500 a year. $50,000 of contributions a year, 15 years to retirement.

Total SMSF balance
$700,000
Target property price
$450,000
Expected weekly rent
$420
LRBA loan required?
No: paying cash from SMSF balance
Purchase costs
$22,000
Property costs a year
$4,000
SMSF running costs a year
$3,500
Property growth assumption (% a year)
4%
Diversified fund return (% a year)
7%
Years to retirement (youngest member)
15
Total annual contributions
$50,000

The fund pays $472,000 ($450,000 plus $22,000 of costs), leaving $228,000 in other assets, and the property becomes 66% of the fund. Rent of $21,840 less $7,500 of property and fund costs leaves $14,340, or $12,189 after the 15% tax. With the property growing 4% a year and the rest earning 7%, after 15 years the property path reaches about $3.00 million against $3.19 million for a diversified fund - about $186,000 less, before capital gains tax on any sale.

Questions people ask

Can I live in a property owned by my SMSF?
No. A residential property owned by an SMSF can't be lived in or rented by a member or anyone related to them. It must be rented to unrelated tenants at market rent. Breaching this can lead to the fund being made non-complying, which is taxed at 45%.
What is an LRBA?
A limited recourse borrowing arrangement lets an SMSF borrow to buy a single asset, held in a separate holding (bare) trust until the loan is repaid. If the fund defaults, the lender's claim is limited to that asset, not the fund's other assets.

The terms, in plain English

LRBA (Limited Recourse Borrowing Arrangement)
A special loan structure allowing SMSFs to borrow to purchase a single asset, with the lender's recourse limited to only that asset.
Bare Trust
A trust that holds the SMSF property title during the LRBA loan period. Once the loan is repaid, the property transfers to the SMSF.

Official sources

SMSF Setup Cost Calculator

Calculate the costs of establishing and running an SMSF.

Rental Yield Calculator

Compare yields on potential SMSF investment properties.

Super Balance Projector

Compare property vs diversified super fund growth.