CO-LIVING PROPERTY INVESTMENT
Supercharge your retirement cash flow by understanding how to acquire high-yield property inside your Self-Managed Super Fund
Co-living properties, such as micro-apartments, rooming houses, and multi-tenant homes, have surged in popularity among SMSF investors due to their ability to deliver exceptional rental yields. However, with recent legislative changes to SMSF borrowing rules, it’s critical to know what is legally permissible today so your fund remains 100% compliant.
Trusted & Awarded
Low Interest Rate & Flexible SMSF Loans
Access Ultra-competitive SMSF loan rates with unrivalled property flexibility.
Approval for more property types including high rises, hobby farms, and agricultural operations
Residential or commercial property loans
Higher purchasing capacity and lower rates, fees and charges than other brokers.
Expert attention to the complex paperwork required for self managed super funds
The Co-Living Landscape: What Changed for SMSF Borrowing?
For years, a popular strategy for SMSF trustees was using a Single-Contract (Turnkey) Limited Recourse Borrowing Arrangement (LRBA) to build or buy a residential co-living property. The single-contract structure was specially designed to satisfy the ATO’s “single acquirable asset” test under Section 67A, allowing super funds to borrow for completed multi-room residential homes.
The Current Reality
Under the legislative reforms that took effect on 10 August 2026, the ATO ended new LRBAs for residential real estate.
Because co-living houses, rooming homes, and residential micro-apartments are legally classified as residential property under superannuation law, you can no longer set up a new bank loan (LRBA) to buy or build a residential co-living property inside your SMSF.
Even if a builder offers a clever “single-contract package,” a new loan cannot be used to bypass the ban on residential LRBAs.
Can You Borrow (LRBA) for Co-Living Today?
Strategy / Asset Type | Current Status | Key Rule to Remember |
|---|---|---|
Commercial / Business Real Property | ✅ 100% PERMITTED | Full LRBA borrowing remains active for commercial co-living and business premises. |
Grandfathered Residential LRBAs | ✅ PROTECTED | Valid for contracts executed before 10 August 2026. Refinancing permitted. |
Residential Co-Living (Debt-Funded) | ❌ BANNED for new loans | New LRBA loans for residential real estate are prohibited. |
Compliant Ways to Invest in High-Yield Assets Today
1.
Shift Focus to Commercial Real Estate (Business Real Property)
Borrowing under an LRBA remains 100% open and unrestricted for Commercial Property (Business Real Property).
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Superior Cash Flow: Commercial assets (factories, warehouses, medical suites, offices) deliver strong yields between 5% and 8%+, giving your fund the heavy cash flow co-living investors originally sought.
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The Business Owner Move: If you run a business, your SMSF can buy your commercial premises using an LRBA loan and lease it straight back to your business at market rates. Your rent becomes a tax-deductible business expense that directly grows your retirement pool.
2.
Outright (Un-geared) Co-Living Purchases
The 2026 LRBA ban only restricts borrowing—it does not ban residential property ownership inside super. If your SMSF has accumulated sufficient cash reserves, your fund can buy or build a residential co-living asset outright without a mortgage. You’ll enjoy 100% of the multi-tenant rental income directly inside your low-tax super environment!
3.
Grandfathered Contracts & Refinancing
If your SMSF signed and exchanged binding contracts for a residential LRBA before 10 August 2026, your arrangement is fully protected under grandfathering provisions.
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Refinancing Allowed: You don’t need to sell the property, and you’re still permitted to refinance your existing loan to secure better rates or terms.
How Our Super Fund Loan Process
Works
Our streamlined process ensures you get the best SMSF loan with minimal hassle.
Here’s how it works:
How Our Super Fund Loan Process
Works
Our streamlined process ensures you get the best SMSF loan with minimal hassle.
Here’s how it works:
Assess and Plan
We assess your situation and explore
lending options to plan your investment
strategy.
Apply and Negotiate
We manage the loan application and
negotiate with lenders to get you the best
terms and rates.
Fund and Implement
Once approved, we ensure quick
disbursement and assist with your
investment strategy, providing ongoing
support as needed.
Our Services
Whether you're looking to refinance an existing SMSF loan or need finance to buy a property investment in super, our experienced team of self-managed superannuation fund service providers can help you find the right SMSF loan.
Residential SMSF Property Loans
As a self managed super fund SMSF trustee, borrowing to purchase an investment property could be the financial kick-start you’ve been searching for. We can help you access the best finance solutions to purchase your investment. Our strategies help to maximise the growth of your SMSF residential investment property.
SMSF Loan Refinance
If your residential or commercial property loan is more than 2 years old, you could be missing out on more competitive products recently released to the market. We compare products and strategies with your finance needs, to match you with the most cost-effective loan for your circumstances.
SMSF Setup
Ensure your self managed super fund is set up correctly and compliantly. We help with the set up of your fund, all the way through to the settlement of your property - we can even organise to have your loan pre-approved before your super fund has been established.
Commercial SMSF Property Loans
Looking for a loan to purchase a commercial investment property inside of super? With access to a number of commercial loan products, we can build a tailored investment strategy for your self managed super fund commercial property investment.
SMSF Lending Strategy
Our goal is to find the right Self Managed Super Fund lending strategy for you. Investing in property within your SMSF can be complicated - Our experts help simplify the whole process.
Bad Credit SMSF Loans
Having a bad credit score doesn’t have to mean you miss out on borrowing to invest or get stuck with high interest rates. At SMSF Loan Experts, we offer lending solutions especially geared for clients with a less than perfect credit history.
Low Interest Rate & Flexible SMSF Loans
Access Ultra-competitive SMSF loan rates with unrivalled property flexibility.
Frequently Asked Questions About
SMSF Loans
Common Questions Answered
Yes, SMSFs can borrow money for property, managed funds, or shares using a
Limited
Recourse Borrowing Arrangement (LRBA)
. This process is heavily regulated, so
getting expert advice is recommended. Contact us for more details.
Navigating through property investments within an SMSF involves various
considerations such as property values, regulatory changes, interest rates, tenant
occupancy, and financial liquidity. Working closely with experienced experts can help
manage these factors effectively and ensure the stability and growth of your
investment portfolio.
ENQUIRE NOW
Free SMSF Finance Session
Contact us today, or schedule a phone meeting with an SMSF Loan Expert to make sure you get the right SMSF Lending advice 1300 781 680
FAQs
Map Out Your SMSF Property Strategy Today
Whether you want to explore high-yield commercial property, refinance an existing residential LRBA, or structure an un-geared purchase, our accredited specialists are here to guide you.
Call us today on 1300 781 680 to book your free strategy session.