Understanding SMSF Lending and First Mortgage Investments for Property Growth
Self-Managed Super Funds (SMSFs) have become a powerful tool for Australians looking to take greater control of their retirement savings. One of the most popular strategies within SMSFs is property investment, made possible through SMSF lending . When structured correctly, an SMSF property loan can help investors grow wealth while benefiting from long-term capital appreciation and rental income. In this article, we explore how SMSF property lending works and the role of first mortgage investments in securing these loans. What Is SMSF Lending? SMSF lending refers to borrowing arrangements that allow a self-managed super fund to purchase property. Unlike traditional home loans, SMSF loans must comply with strict Australian superannuation laws, most notably the Limited Recourse Borrowing Arrangement (LRBA). Under an LRBA, the lender’s rights are limited to the property itself, meaning other SMSF assets are protected if the loan defaults. This structure...