24 Sep 2022

Can I Buy Land in My SMSF?

Land Loan and Construction Loan

Unfortunately, no you cannot buy land in your SMSF. Because of the strict SMSF guidelines, only single-acquired assets are eligible for purchase through SMSF. Purchasing land will require some form of an addition to generating income, and improvements are prohibited. Single-acquired assets are investments that include the following:

  • Residential and commercial properties
  • Australian and international shares
  • Cryptocurrency
  • Managed funds
  • Term deposits
  • Cash & bonds
  • Overseas investments
  • Non-related business investments

SMSF is a great option for someone interested in managing their wealth and deciding exactly where they would like to invest their money. SMSF allows borrowers to continue building their wealth and boost their retirement SMSF savings. SMSF investments must generate income to properly work, and a portion of that generated income will be put towards the SMSF retirement savings. The SMSF retirement savings cannot be accessed until the account holder reaches retirement age.

Due to the high-risk nature of SMSF investment loans, Australian banks no longer offer them. However, that does not mean you are out of luck. The following lenders still offer SMSF investment loans, and we recommend comparing the lenders’ interest rates, costs, and terms and conditions before applying to ensure you receive the best deal for your financial status.

  • La Trobe Financial
  • Mortgage House
  • Liberty Financial
  • Reduce Home Loans
  • Switzer Home Loans

Interested in learning more about SMSF investment loans? Reach out to the SMSF experienced and knowledgeable Mortgage House lending specialists today for assistance with SMSF investment loan applications and approvals.

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