Question 1

What is commercial SMSF lending?

Accepted Answer

Commercial SMSF lending lets your self-managed super fund borrow to buy income-producing commercial property, such as an office, warehouse, retail shop, or medical suite. The loan is arranged through a Limited Recourse Borrowing Arrangement, which means the lender can only claim the property being purchased if the loan defaults, protecting the rest of the fund. Rent from the property flows into the fund in a concessionally taxed environment, and a key advantage over residential SMSF property is…

Question 2

Can my business lease the property from my SMSF?

Accepted Answer

Yes, and this is the standout benefit of commercial property in super. Business real property, meaning property used wholly and exclusively in a business, is an exception to the general ban on related party transactions. Your SMSF can buy your commercial premises, including from you or a related party, and lease it back to your business at a market rent set by an independent valuation. The rent your business pays becomes a contribution to your retirement savings rather than money paid to an unre…

Question 3

How much can an SMSF borrow for commercial property?

Accepted Answer

SMSF commercial property loans through an LRBA are typically funded to around 65% of the property value, sometimes up to 70% with select lenders for strong assets. Your fund needs enough cash to cover the deposit, stamp duty, and costs, plus a buffer for ongoing liquidity. Lenders assess the rent the property produces, the lease and tenant, the fund contributions, and the trust structure. Commercial SMSF lending sits with a smaller panel of specialist lenders, so matching your fund to the right…

Question 4

What structure does a commercial SMSF loan require?

Accepted Answer

A compliant LRBA needs a correctly established structure: your SMSF as the borrower, a separate holding trust (often called a bare trust or custodian trust) that holds legal title to the property while the loan is outstanding, and a corporate trustee for that holding trust. The property is held on trust for the fund until the loan is repaid, at which point title can transfer to the fund. Getting this structure right before you exchange is critical, because errors are expensive to fix and can bre…

Question 5

What are the tax advantages of holding commercial property in an SMSF?

Accepted Answer

Holding commercial property in super is one of the more tax-effective strategies available to business owners. Rental income is taxed at the concessional super rate of 15% in accumulation phase, and can be 0% once the fund moves to pension phase. Capital gains on a property held longer than 12 months are taxed at an effective 10% in accumulation, and can be 0% in pension phase. If your business leases the premises, the rent it pays is generally a deductible business expense while building a reti…

Question 6

Can I use my SMSF to buy the premises my business already occupies?

Accepted Answer

Yes. Many business owners sell their existing commercial premises into their SMSF, or have the fund buy premises they are about to occupy, then lease them back. Because the property is business real property, the sale from a related party into the fund is allowed, and the lease-back at market rent is compliant. This turns rent you already pay into contributions toward your retirement, and can free up capital in your business. Stamp duty and capital gains tax on the transfer need to be planned fo…

Question 7

What are the risks and rules I need to know?

Accepted Answer

SMSF borrowing is tightly regulated. The property must meet the sole purpose test, being held only to provide retirement benefits, and cannot be used by you or related parties other than a compliant business lease at market rent. You cannot improve the property in a way that changes its character using borrowed funds. The fund must maintain enough liquidity to cover loan repayments, so concentration risk in a single property is a real consideration. Loans are limited recourse but often require p…

Question 8

Does RyRo charge fees for commercial SMSF lending?

Accepted Answer

For most SMSF commercial deals we are paid by the lender on settlement, so there is no direct broker cost to you. Some complex or specialised SMSF transactions carry a broker fee, which we disclose in writing before you proceed so you can weigh it against the structure and lender access we provide. The costs of establishing the LRBA structure, such as the bare trust and legal work, are separate and are handled by your accountant or solicitor. We are upfront about every cost before you commit.

Question 9

What interest rates apply to SMSF commercial property loans?

Accepted Answer

SMSF commercial property loan interest rates are higher than standard residential rates because they sit with a specialist lender panel and use a limited recourse structure. As a rough guide, expect pricing in the high 6% to 8% range depending on the lender, the property, the lease, and the strength of your fund. Compare the all-in cost, including establishment and ongoing fees, rather than the headline rate alone. We compare the SMSF commercial lenders active right now so your fund gets a compe…

Question 10

How much deposit does my SMSF need for a commercial property?

Accepted Answer

Because SMSF commercial loans are typically capped near 65% of the property value, your fund usually needs at least 35% of the purchase price, plus stamp duty, legal costs, and a liquidity buffer for repayments and fund expenses. On a $1,000,000 commercial property that means roughly $350,000 toward the purchase plus costs, held in the fund before settlement. We model the full cash requirement for your fund so you know exactly what is needed before you make an offer.

Question 11

Is there an SMSF commercial property loan calculator?

Accepted Answer

You can get a quick estimate of repayments and borrowing capacity with our loan repayment and borrowing power calculators, then we confirm the real numbers for your fund. SMSF commercial lending has more moving parts than a standard loan: contribution levels, rent, lease terms, and liquidity all feed into what a lender will approve, so a calculator is a starting point rather than a final answer. Book a free assessment and we will run the exact figures for your fund and property.

Cost	Typical Range	Notes
Interest rate	High 6% to 8%	Varies by lender, asset, and fund strength
Maximum leverage	Up to 65%	Sometimes 70% for strong assets
Minimum fund contribution	35% or more	Deposit, stamp duty, costs, plus a buffer
Bare trust and legal setup	One-off cost	Handled by your accountant or solicitor

SMSF Commercial Property Loans in Sydney, Buy and Lease Back Through Your Super Fund

Book Your Free SMSF Lending Assessment

Turn Rent Into Retirement Savings

How Commercial SMSF Lending Works

Why Buy Commercial Property in Your SMSF

Your business can lease it back

Concessional tax on rent and gains

Rent builds your retirement, not a landlord

SMSF Commercial Property Loan Interest Rates and Costs

Can You Use Your Super to Buy Commercial Property?

Getting the Structure Right

Thinking About Commercial Property in Your Super Fund?

Why SMSF Buyers Choose RyRo

We know the specialist SMSF lender panel

We work with your accountant and adviser

We model liquidity and serviceability upfront

Clear on every cost

Commercial SMSF Lending FAQs

Ready to Buy Commercial Property in Your SMSF?

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