SMSF Commercial Property Finance
Commercial property can be an excellent addition to your Self-Managed Super Fund investment strategy. With higher yields and longer lease terms than residential property, commercial assets offer unique advantages for building retirement wealth.
Why SMSF Commercial Property?
Higher Rental Yields
- Typically 6-12% gross yields
- Long-term lease agreements
- Annual rent increases built-in
- More stable income streams
Tax Benefits
- Concessional tax rates in super
- Potential capital gains exemptions
- Tax-deductible expenses
- Rental income within super environment
Portfolio Diversification
- Balance residential property exposure
- Different market cycles
- Professional tenant base
- Value-add opportunities
Control & Flexibility
- Direct property selection
- Strategic location choices
- Lease negotiation control
- Asset management decisions
Eligible Commercial Properties
Office Buildings
- Single or multi-tenanted
- CBD and suburban locations
- Medical and professional suites
- Corporate headquarters
Retail Properties
- Shopping centers and strips
- Standalone retail buildings
- Hospitality venues
- Service-based retail
Industrial Assets
- Warehouses and distribution
- Manufacturing facilities
- Storage and logistics
- Light industrial units
Specialized Properties
- Childcare centers
- Medical centers
- Automotive services
- Educational facilities
SMSF Commercial Lending Structure
Limited Recourse Borrowing
- Compliant LRBA structure
- Bare trust arrangement
- Single acquirable asset rules
- Asset protection features
Loan Features
- Up to 70% LVR typically
- Interest-only options available
- Competitive commercial rates
- Terms up to 25-30 years
Security Requirements
- Commercial property as security
- Fund assets protection
- Limited recourse provisions
- Professional valuations required
Investment Considerations
Due Diligence
- Location and accessibility
- Tenant quality and covenant
- Lease terms and conditions
- Market growth prospects
Property Management
- Professional management recommended
- Tenant relations and renewals
- Maintenance and improvements
- Compliance obligations
Exit Strategies
- Capital growth realization
- Pension phase income
- Portfolio rebalancing
- Succession planning
Compliance Requirements
SMSF Rules
- Sole purpose test compliance
- In-house asset restrictions
- Related party limitations
- Member benefit rules
Commercial Property Specific
- Professional valuations
- Commercial lease agreements
- Property management requirements
- Development restrictions
Our SMSF Commercial Process
1. Strategy Development
- SMSF capacity assessment
- Investment objectives review
- Risk tolerance evaluation
- Commercial property suitability
2. Property Search
- Market analysis and research
- Due diligence coordination
- Valuation arrangements
- Contract review
3. Finance Structure
- SMSF-compliant application
- Bare trust establishment
- Lender submission
- Documentation coordination
4. Settlement Support
- Legal documentation
- Settlement coordination
- Ongoing compliance setup
- Property management arrangements
Investment Benefits
Higher Returns Commercial properties typically offer superior yields to residential.
Professional Tenants Business tenants often take better care of properties.
Longer Leases Reduce vacancy risk with longer-term lease agreements.
Value-Add Opportunities Potential for property improvements and rent increases.
Risk Management
Diversification
- Don't put all super into one asset
- Consider geographic spread
- Mix of property types
- Balance with other investments
Professional Support
- SMSF accountant coordination
- Property management services
- Legal compliance monitoring
- Regular portfolio reviews
Why Choose Our SMSF Commercial Service?
Specialized Expertise Deep knowledge of SMSF commercial property investment.
Compliant Structures Ensure all arrangements meet regulatory requirements.
Lender Access Relationships with SMSF commercial property specialists.
Professional Network Coordinate with accountants, lawyers, and property professionals.
Ongoing Support Long-term relationship and portfolio management.
Get Started
Ready to explore SMSF commercial property investment? Our specialists will assess your fund's capacity and guide you through the process.
Book SMSF Commercial Consultation
SMSF commercial property investment is complex and requires professional advice. This information is general in nature.