Self-Managed Super
SMSF and Property After the Borrowing Ban
From 10 August 2026, SMSFs can no longer take out new limited recourse loans to buy residential property. Property in super is still possible, but the strategy has changed.
What changed
No New Residential LRBAs
SMSFs can generally no longer enter into new limited recourse borrowing arrangements (LRBAs) to buy residential property. The change took effect on 10 August 2026, after legislation passed on 26 June 2026.
Existing residential LRBAs can continue and can generally be refinanced, contracts signed before 10 August 2026 can proceed to settlement, and SMSFs can still borrow to buy business real property, such as commercial premises.
10 Aug 2026
Ban on new residential LRBAs
Yes
Existing loans continue
Yes
Commercial property borrowing
Cash
How SMSFs now buy residential
Source: Mortgage & Finance Association of Australia, August 2026.
Your options now
Three Paths for Property in Super
Residential, cash purchase
Funds with enough capital can still buy residential property outright, without borrowing.
Residential in an SMSFCommercial property
SMSFs can still use an LRBA to buy business real property, subject to the rules.
Fractional investment
Investing through a unit trust structure for a smaller amount, without borrowing.
Fractional propertyExisting SMSF property
Review what you already own and whether it still fits your strategy.
Portfolio reviewOur role
We Model the Numbers, Your Advisers Advise
We are not financial planners and do not provide financial advice. We work alongside licensed financial planners, accountants and SMSF specialists, and we can show you the projected cash flow and returns of different properties so your advisers can verify them and you can compare options.
properT network does not provide financial, tax or legal advice. Speak with your licensed financial adviser, accountant and solicitor before acting.
“Whenever you apply emotion to any decision, especially when it comes to investing, you’re guaranteeing yourself a lower return on investment, but only 100% of the time.”
Questions
Frequently Asked Questions
Can my SMSF still buy residential property?
Yes, but from 10 August 2026 it generally cannot take out a new LRBA to do so. The fund must have the cash to buy outright.
What happens to existing SMSF property loans?
Existing residential LRBAs can continue under the existing rules and can generally be refinanced, subject to lender policy.
Can an SMSF still borrow for commercial property?
Yes. SMSFs can still use an LRBA to buy property that meets the definition of business real property.
Strategy Before Property
Talk to Us About SMSF Property
Book a complimentary strategy call with Stephen Lazar. We’ll look at the options for your fund and model the numbers for your advisers to review.
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Great post! I found the information really helpful and easy to understand. Thanks for sharing these useful insights.
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